some Info on CRPP
From the details of their bankruptcy, CRPP, which as recently as March, 2003, was traded on the New York Stock Exchange as CRO, has approximately 30.5 million shares outstanding, along with $53.6 million in assets, slightly over $5 million in cash and merely $1.07 million in debt. It appears as though the bankruptcy was a smart plan designed to protect those hefty assets.
Along with those assets, CRPP now has that $40 million DIP financing from CIT.
Crown Pacific owns or controls in excess of 524,000 acres of timberland, which contain a total merchantable timber inventory of approximately 2.5 billion board feet, located in Oregon and Washington. The Company's timber holdings are primarily comprised of softwood species, including douglas-fir, hemlock, white fir, ponderosa pine, lodgepole pine, cedar and sugar pine, as well as a significant volume of red alder. Due to its long fiber, strength, flexibility and other characteristics, softwood species are primarily used for construction lumber and plywood. Crown Pacific's substantial timber resources help reduce its reliance on third-party log sources to supply its manufacturing facilities.
The Company produces an array of lumber products at its three converting mills, one located in Oregon and two located in Washington.
The Company owns and operates five contractor supply yards: three in the Phoenix, Arizona, area, one in Las Vegas, Nevada and one in Reno, Nevada. It also operates seven forest product wholesale trading operations: one in Eugene, Oregon, one in Ogden, Utah, one in Phoenix, one each in Roseville, Cameron Park and Tustin, California and one in Albuquerque, New Mexico, which also operates as a wholesale distributor.
Crown Pacific also shows environmental responsibility.
crownpacificpartners.com
From their history it appears they have also striven to do the best they could for their investors, customers, and suppliers.
In other words, a good and responsible company moving through some difficult times. Which suggests a great investment and/or trading opportunity.
From their Letter to Customers:
“we plan to continue normal business operations while we work to
significantly modify our capital structure. This means we will work to meet your needs, operate our business based on industry conditions and continue to ship high-quality products on a timely basis, just as we have in the past. To help ensure that we have the capability to do this, we have asked the bankruptcy court to approve $40 million in debtor-in-possession (DIP) financing that we have arranged with CIT.
With an enhanced capital structure, the company will be better able to utilize its assets to meet your needs. We will continue to work to reduce costs at all of our operations in order to be able to efficiently operate in a volatile price environment.”
And from their Letter to Suppliers:
“Payment for goods and services provided on or after today will be paid under normal trade terms. The company has cash reserves and has asked the bankruptcy court to approve a debtor-in-possession (DIP) financing in the amount of up to $40.0 million the company has arranged with CIT. This financing will ensure that we will be able to continue normal business operations while
we work to restructure the company. We will, in short, need you and will have the cash to pay you and other vendors according to normal terms.”
These are some basic facts. They are available in greater detail from the links below.
Links
oregonlive.com
crownpacificpartners.com
ir.thomsonfn.com
ir.thomsonfn.com
Chart: 139.142.147.218
Good trading |
