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PORT OF WALLA WALLA
TO ASSIST PONDEROSA FIBRES OF
WASHINGTON IN RESTRUCTURING MUNICIPAL BOND DEBT
July
13, 1998
The
Port of Walla Walla announced today its intention to assist
in restructuring a portion of the debt of the de-inked market
pulp mill located in Wallula, Washington. The mill is owned
by Ponderosa Fibres of Washington, L.P., an affiliate of Ponderosa
Fibres of America the largest producer of de-inked market
pulp in the world. In 1995, the Port of Walla Walla Public
Corporation issued $110 million in nonrecourse industrial
revenue bonds, the proceeds of which were loaned to the company
to finance construction of the mill. The bonds are payable
solely from revenues of the mill and do not constitute a debt
of the Port of Walla Walla, Walla Walla County, the State
of Washington, or any other municipal government.
The
principal economic terms of the proposed restructuring provide
for the bondholders to exchange the $110 million in bonds
earlier issued, in return for approximately $72.6 million
in bonds, and other consideration. Like the original bonds,
the new bonds will not constitute a debt of any municipal
government.
According
to Commission President Ken Jantz, "This restructuring
which is subject to various approvals, will enhance the long-term
competitive position of the mill and expedite the completion
and start up of the de-inked market pulp facility at Wallula.
We are pleased Ponderosa has reached agreement in principal
with the bondholders for this restructuring plan."
Ponderosa
Fibres of America officials noted that the debt restructuring
of the Washington facility will not have any impact on operations
on its other market pulp facilities.
"Ponderosa
has already made a significant contribution to Walla Walla
County," according to Jantz. Several hundred people have
been employed during construction, $63,674 in building permit
fees have been collected and Ponderosa’s first half of
1998 property taxes totaling $554,800 has been paid. The plant
currently employs 53 workers.
For
more information, contact Jim Kuntz, Executive Director, Port
of Walla Walla at (509)525-3100.
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