Pending sale of closed Blue Heron Paper mill site in Oregon City, Oregon, falls through; potential buyer Langley Investment Properties walks away from deal after failing to meet deadline, says it needs several more months for due diligence
February 5, 2014
(Industry Intelligence Inc.)
– The potential buyer of the former Blue Heron Paper Co. site in Oregon City, Oregon, has walked away from the deal after failing to meet a deadline at end of January, reported The Oregonian on Feb. 3.
The mill has been closed since 2011, according to Industry Intelligence Inc.’s archives.
Notification that the sale had fallen through was given to U.S. Bankruptcy Court judge Randall Dunn on Monday, The Oregonian reported.
Judge Dunn had approved a purchase agreement for the sale of the 23-acre Blue Heron Paper mill property to Langley Investment Properties just a month ago.
Liam Thornton, managing director of Langley, said that the company needed several more months to complete due diligence, beyond the end of January deadline, reported The Oregonian.
Bankruptcy trustee Peter McKittrick, who is in charge of liquidating the mill’s assets, said that talks are continuing with other potential buyers but there are no offers.
The property could also be auctioned off or abandoned, he said, The Oregonian reported.
A previous offer for the mill site had been received from Irvine, California-based Eclipse Development Group, which would have paid US$4.1 million. However, that deal fell though last October.
Langley was to pay $4.9 million if the deal closed in 12 months, or $5.75 million if it closed later. In addition, it would have paid $30,000 a month for a longer closing deadline to offset the cost of maintaining the site.
However, McKittrick said he would not extend the deadline, calling the decision “a money issue,” reported The Oregonian.
There would not be any money left for creditors or former workers of Blue Heron Paper after paying $30,000 to $40,000 a month to cover operating and maintenance costs for the site, he said.
There are about 50 buildings on the property, The Oregonian reported.
The primary source of this article is The Oregonian, Portland, Oregon, on Feb. 3, 2014.