Just a couple of follow-up thoughts on the Times-Standard‘s major scoopage this morning on the sale of Evergreen Pulp …
Here’s the disclosure form (.pdf) on the sale from the Hong Kong stock exchange. Note the payment schedule. Someone’s getting what seems like a pretty handsome deal. They’re putting about $2.5 million US down, then paying ~$4 million in six quarterly installments beginning at the end of the year, for a total of about $28.7 million.
And what is that buying, exactly? The purchaser isn’t buying the mill itself. It’s buying two Lee & Man subsidiaries — USLM Acquisition, Inc. and HKLM Acquisition, Inc. (One would guess they stand for “U.S. Lee & Man” and “Hong Kong Lee & Man.”) What other assets do those subsidiaries own? We don’t know at this point, but they are headquartered in Colorado, not here.
More to come, for sure. But don’t miss the T-S‘s excellent write-up this morning on the mill’s general economic problems, which have spun out to its suppliers over recent months.