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Coastal Plywood acquires CFP debt
Published Tuesday, June 30, 2009
Coastal Plywood Company has purchased the debt from International Paper Company on Chapman Forest Products, according to records filed in the Butler County Courthouse.
"We did acquire the debt and our company is still in the process of evaluating that particular piece of property," said Travis Bryant of Coastal Plywood.
Records show that Smith Family Companies, owner of Chapman Forest Products, entered into a loan agreement with IP on Dec. 31, 2007 for the amount of $9 million to purchase the plant and secured an additional $5 million loan for capital expenditures.
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Chapman Forest Products told employees of plans to close on June 15 with operations expected to cease in July.
"I don't know how the closing is going to effect the debt," said Bryant. "The ideal situation would be for the current owner to find someone to sell to and pay us off, which in the current climate may by unlikely."
Foreclosing on the property would be a "long" process, said Bryant, but the company has not ruled out such action.
Bryant also said he didn't want Coastal Plywood's acquisition of the debt to be viewed as a "yellow brick road" that would end with the mill in Chapman re-opening.
Coastal Plywood is a North Carolina company with its sales office and manufacturing plant based in Havana, Fla.
Calls made to Smith Family Companies in Pelham were not returned on Tuesday.
The Advocate was unable to reach anyone at Chapman Forest Products.
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Posted by BF2C1 (anonymous) on July 2, 2009 at 11:48 a.m. (Suggest removal)
The two words that we may see in the coming months reguarding the Chapman Forest Products story is bankruptcy and foreclosure.
And where in the world is Matt Lauer, I mean Phil Smith?
Posted by antitwitterer (anonymous) on July 2, 2009 at 2:33 p.m. (Suggest removal)
I believe you are right about the words bankruptcy and foreclosure coming up in the next few months. I think a few more things will come to pass, such as the end of the Union there. As for Phil Smith, I don't think he bought the plant in hopes of losing money or hurting others. If anyone is ultimately to blame for the plant closure it surely wouldn't be a single person. The realities is that we live in a free market economy which uses a supply and demand curve to establish pricing. The thing is the quality of the service or good helps to establish pricing by our willingness to pay x dollars for it. Unfortuanlely Gas and oil and even our utilities do not concern themselves with supply demand or our willingness to pay- instead they disrupt capitalism and throw the whole world in a state of dissaray by insisting on reaping record profits. In economic terms that phenomena is called cost pull inflation. If you believe that Chapman, wood products or even the housing market was anything other than a victim of static and excessive fuel cost you'd be wrong in my opinion. Wood isn't selling because very few people are comfortable buying anything other than absolute necessities. Largely there is little confidence that anything done for our economy won't be undone by our failure to regulate the Gas and OIl industry. Call it socialism if you want, but I'd be inclined to say it these industries can find it so easy to monopolize and extort us - we need to take them out behind the wood shed.
Posted by Shane (anonymous) on July 6, 2009 at 9:55 p.m. (Suggest removal)
Several years ago Alabama Governor Don Seigleman was in the Korean newspapers all the time visiting here trying to get Hyundi to move to Alabama and he wasnt along.They were from all over the states but he won........
Well,on lumber Korea is about the size of Alabama but with over 50,000,000 while Alabama has I think 3,000,000 and their are no trees in Korea.Its buildings, apt. complexes,and so on.....Japan is the same way.Both need lumber and they are buying it from Indonesia and Melaysia but if the Gov. would visit and offer a better deal than those countries. Made a trade agreement with Alabama.....They would sure go with the best price and produce and Im very sure that Alabama trees are just as good or better than those other countries and saving a lot of jobs all over the South and Butler Co.
Posted by BF2C1 (anonymous) on July 7, 2009 at 4:13 p.m. (Suggest removal)
For those that can remember beyond 90 days there was a small operation in Greenville that was cutting and shipping Eastern Red-Cedar (juniperus virginiana) to what was said to be 'overseas' customers. I was told that the Japanese were buying this for expensive cabinets. This operation was where the AIA Metal location is today. Apparently they got all that they wanted and the operation shut down.
Further back in time one can read about the 'Old Cedar Works' plant where Structual Wood Systems is today. This mill had close ties to the Farber family in Germany. The juniper in this case was used in the production of leaded pencils.
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