Pulp Friction Update: Evergreen Sold!
Lee and Man Sold Evergreen to the "Worthy Pick Group" out of the British Virgin Islands.
Quotes and numbers are from todays Eureka T-S.
As the global economic downturn progresses, big timber industry firms with local facilities are now at odds.
Green Diamond (GD) and subsidiary California Redwood Co. (CRC) say that Chinese-owned Evergreen Pulp owes them millions of dollars for logs and woodchips they delivered to the facility. Likewise, Sierra Pacific Industries (SPI) says that Evergreen owes them big bucks for woodchips.
Yesterday, Evergreen CEO David Tsang said they have paid their bills, at least in part, as they loaded an estimated $6 million worth of wood pulp onto a ship destined for Hong Kong. “The economy of the world is putting us down a path where we need to survive,” he said.
'Join the club'. Green Diamond VP Neal Ewald has basically told Evergreen to suck it up, saying ”We understand Evergreen's cash flow and log inventory issues, but these are challenges that all forest product businesses routinely manage.”
The courts agree with the logging firms. Green Diamond has secured a lien in court against Evergreen for $516,000 worth of chips, logs and pulp. This means that GD owns said materials currently located at Evergreens facility. CRC has obtained a similiar protective order for $1.32 million. Sierra Pacific has a lien for $402,000 worth of wood chips.
Green Diamond currently has the distinction of being the biggest clear-cutter in the Redwoods and SPI is known for the same in the Sierra Nevada mountains. Evergreen is know for it's stinking plumes of toxic fumes over Eureka (You-Reek-a) and spilling toxic waste into Humboldt Bay and the Ocean.