Linden Lumber foreclosure cancelled

Linden Lumber Company, Ltd and its affiliates announced Sept. 6 a settlement has been reached between the company and the Federal Land Bank. The company consented to the sale of the Federal Land Bank loans to Wachovia Bank. Wachovia, who is currently the company's working capital lender, has cancelled the foreclosure sale.

The settlement action should allow the Marengo County Commissioners to proceed with a bond issue of up to $7 million, whose proceeds will be used on behalf of Linden Lumber to include debt retirement and acquisition of new equipment.

The bond issue was previously approved on August 24 with certain contingencies required by the County Commission, all of which are expected to be met over the next several months.

During this period and for the foreseeable future, the Linden Lumber expects to continue operating at its present levels, including maintaining its current workforce while the bond issue is being finalized.

"Our employees were pleased by the outpouring of support at the public meeting," said Hugh Overmyer, Chief Operating Officer of Linden Lumber Company. "While we have much hard work ahead of us, the company is determined to be successful and make the employees and the county proud.

Were it not for the historic low levels of housing starts we are presently experiencing, we believe that Linden Lumber would be profitable today. But given our aggressive response to our difficulties, we are confident that we have set ourselves up for major efficiency gains which we think will secure our future."

Overall, employees and suppliers of the company have remained loyal throughout these uncertain times, he said. "It has been a very difficult few weeks for our employees and our suppliers due to the uncertainties of our situation. I am very pleased with the outcome and I look forward to getting back to business," Overmyer said.

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