Roger Spitz: Got it. So where are you?
De Lyle Bloomquist: And the last point, make one more point, Roger. Again, this is not a closure. This is a suspension. So any of these retained costs or these stranded costs or however you want to describe them, the plan is that HPC will retain those costs ongoing and won’t affect the paperboard business or the High-Yield Pulp business. Again, because there’s a likelihood that we would actually restart these operations sometime in the future. So these ongoing fixed costs that we would have at the site, we would need to retain to support that potential.
Roger Spitz: Well, I guess at least the following two questions. One is where are you in the process? Have you, you said last time you received indications of interest, which suggests that you did, you got first round bids in that area, so where are you? Have you asked for second round bids? Have you run management presentations ahead of the second round? So have you sent out, contracts for potential buyers to mark up?
De Lyle Bloomquist: We have had management presentations. We’ve had site visits with interested parties. We are, have provided a draft or, draft APA agreements, but with the, as a result of the suspension, obviously the underlying fundamentals and assumptions relative to how the site will operate have now changed. And so because of that, the diligence process is going be extended so that our suitors will have a chance to understand what it would mean to the paperboard and high yield pulp business. Relative to the suspension that we’ve discussed. So anyway, the delay we believe is actually relatively minor. It isn’t a, it doesn’t, at all talk about, or even suggest that there’s a lack of enthusiasm for the assets. In fact, I would suggest that as a result of the suspension, that enthusiasm is actually increased from the parties that are interested.
And I would actually suggest also that we’ve actually seen increased interest from other parties. So we will continue to run the process as we see necessary to get the best value for those assets. As I said earlier, this is not a fire sale. We want to make sure we get a fair value for these assets. And we’ll run the process as we deem necessary to extract that value.
Roger Spitz: Got it. If I can take one more further on this subject. You’re shutting, you’re idling the plan on July 2nd. So Q3 will be relatively, or substantially clean. Do you think that you really need to go back out and show them the Q3 numbers? And with one quarter of clean quarter, shown that’s when you can restart, or do you think you’ll have to show them two full quarters of “clean” numbers without HPC operating to give potential buyers full confidence to make as high a bid hopefully as they can?
De Lyle Bloomquist: That depends on the suitor. So it’s up to them. But our goal is to conclude the deal if the terms are attractive before we have to, by the end of the year, as part of the refi process.
Roger Spitz: Got it. And then are there other people in queue, or can I ask two more?
De Lyle Bloomquist: Yes, you can go ahead and ask a couple more questions.
Roger Spitz: Sure, maybe you said this and I missed it. The 2024 HPC EBITDA, did that change from the $180 million to $190 million and the paperboard from $50 million to $60 million? I just maybe missed it and you said it on the prepared remarks.
De Lyle Bloomquist: No, they didn’t change. Same as we gave last time.
Roger Spitz: Got it. And then lastly, regarding the GreenFirst wood chip supply agreement, is that based on take or pay volumes, requirements, contracts, or is it just general volume min max under the supply agreement?
De Lyle Bloomquist: We’re required to take a certain amount of volume every year from GreenFirst. So we will need to take the volume even though we’re not operating the facility, but the pricing is based on market, market pricing at the time. And as a consequence, as I said, we will look to resell working with GreenFirst. And as a result of that, our expectation is that we will not see either profit or loss from that resale.
Roger Spitz: Glad to hear it. Thanks for the extra time. Appreciate it.
Operator: Thank you. There are no further questions at this time. I’d like to hand the floor back over to De Lyle Bloomquist for any closing comments.
De Lyle Bloomquist: All right. Again, as always, thank you for joining us today. I appreciate all your interest and support for the company. I am very proud of the hard work and dedication that has been shown by our team and very confident in our ability to continue to enhance the profitability while we work to reduce our debt and our leverage. I look forward to providing updates on all of our ongoing projects and initiatives and value your continued support as we strive for long-term success and growth. As always, we’re committed to maintaining transparency and open communication. So feel free to contact us if you have any further questions or you need any further information. Thank you again for your participation.
Operator: This concludes today’s conference. You may disconnect your lines at this time. Thank you again for your participation.
