International Forest Products Ltd (Interfor) has offered to buy most of troubled Doman Industries‘ sawmilling and logging assets in a C$280m deal.
Interfor’s offer, which would repay debt owed to Doman’s secured creditors, involves the purchase of four sawmills, a remanufacturing plant, plus timberlands and forest tenures representing about 2.7 million m3 of timber.
The company said its proposal is an important step in the revitalisation of the coastal industry, as well as consistent with its vision of building a world-class, globally competitive forest products company.
However, a statement released by some of Doman’s unsecured bondholders said the proposal was “wholly unaccepable”.
But Doman said it would continue discussions with both Interfor and the unsecured bondholders with a view to developing an agreeable restructuring plan.
