Investment Group Buys TreeSource Debt

TreeSource Industries, mired in Chapter 11 bankruptcy for nearly two years, may be nearing a crossroads, following the acquisition of its prepetition senior secured debt.

Purchase of the debt by TreeSource Acquisition Co. LLC could help speed the way toward a decision on whether the company reorganizes or continues gradually selling off its assets, according to spokesman Bob Lockwood.

In May 2000, TreeSource submitted-but later tabled-a plan of reorganization that would have given ownership of the company to the owner of the debt. Lockwood expects any

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future proposal will contain a similar provision.

Portland, Or.-based TreeSource originally filed for bankruptcy protection with $42.4 million in senior secured debt, excluding accrued and unpaid interest. Since then, the firm has auctioned off five facilities, most recently Central Point Lumber, Central Point, Or., in April and its Midway fingerjoint plant in February.

The firm continues operating Glide Lumber, Glide, Or.; Spanaway Lumber, Spanaway, Wa.; Trask River Lumber Co., Tillamook, Or., and Tumwater Lumber, Tumwater, Wa.,

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while Pacific Softwoods, Morton Forest Products, North Powder Lumber, and Pacific Hardwoods remain idle.

U.S. Delays Ruling On Quota

For a second time, the U.S. Commerce Department has postponed its decision on whether Canada is illegally dumping lumber into the U.S.

The department agreed to the U.S. lumber industry's request to delay a ruling until Sept. 24. A decision had been expected about SePt. l0 in the anti-dumping portion of the case, in which domestic firms want the federal government to impose anti-dumping duties of up to 38Vo.

A U.S.-Canada pact which expired March 30 had limited Canada's annual duty-free softwood lumber shipments to 14.7 billion bd. ft.

The Canadian government maintains that the U.S. Commerce Department's own monthly trade data shows Canadian lumber has not been flooding into the U.S. since the pact expired. Canada's SPF shipments to the U.S. fell 11.47o from May to June.

Part Of Crown Pacific For Sale

Crown Pacific Partners LP, Portland, Or., plans to sell some assets to reduce its debt after losing $6.8 million during the second quarter. During the same period last year, Crown Pacific earned $6.9 million.

The company hopes to part with some of its non-timber assets. In addition to 835,000 acres of timberlands in Oregon, Washington, Idaho and Montana, Crown Pacific owns six mills, seven wholesale locations, and five contractor yards.

A year ago, Crown Pacific had attempted to sell the entire company, but abandoned the strategy after five months.

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