PT Holdings Co. Inc., the parent company of Port Townsend Paper Corp., has filed for Chapter 11 bankruptcy protection with the U.S. Bankruptcy Court for the Western District of Washington.
The filing is part of a process that allows PT Holdings to reach tentative agreement with a committee that holds more than 70 percent of the Port Townsend-based company’s senior secured notes on the terms of a reorganization plan.
“We have restructured the debt of the company to create a more viable long-term entity,” company President John Begley told the Peninsula Daily News. “We have taken $50 million of debt off the balance sheet!”
The Port Townsend paper mill is Jefferson County’s largest private employer.
Neither the company’s paper mill in Port Townsend nor its Canadian operations are affected by the actions.
Full reports appear in Wednesday’s editions of the Peninsula Daily News.
