- 15 - prices of the major American pulp companies; a 3-percent discount was commonly offered to purchasers of market pulp, and it did not represent a special price or discount resulting from KKO's interest in LRFP. These benefits to KKO were for the full term of the Pulp Sales Agreement, and KKO’s discount applied in both strong and weak markets. The Pulp Sales Agreement also provided that either party could terminate the agreement only on 1-year’s written notice given on or after July 1, 1999, in which case termination would take effect at the end of 5 years from the date of the notice. Pulp shipments for the period following the date of the notice would be the same for the first 12 months and then be reduced cumulatively. The pulp mill commenced operations in 1984. In that year, KKO purchased 2,555 tons of pulp from LRFP, and, in the next year, KKO purchased 47,128 tons of pulp from LRFP. The purchased pulp was an important source of supply to KKO. In 1986, the markets improved, and LRFP began to develop new markets. In late 1986, the parties to the Pulp Sales Agreement agreed to suspend the Pulp Sales Agreement for 1987, and, by mutual consent on December 31, 1987, the parties to the Pulp Sales Agreement terminated the agreement in toto. In February 1988, Griffin notified GNN that it was going to exercise its put. On January 2, 1989, Griffin did so, exercising its right to sell all of its common and preferred stock in LRFP on July 3, 1989, with an earnings date of May 31, 1989. LRFP’sPage: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Next
Last modified: May 25, 2011