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Parsons Pine to restart mill today So company can pay off some debts By DAVID PRESZLER EUGENE -- Parsons Pine Products plans to reopen its Ashland mill this morning on a trial basis to begin repaying its debts. A U.S. Bankruptcy Court judge issued a preliminary ruling Wednesday that frees the company's equipment from a collateral seizure and allows it to take out a small loan for operating costs. A final hearing has been scheduled for June 3. Wednesday's action gives Parsons Pine just over two weeks to prove that the market for its products is strong enough for it to continue operating -- and pay off more than $1.8 million in debts. At one time, Parsons was a world leader in the production of secondary wood products such as mousetrap blanks, louvers, wine racks and knife holders. On Wednesday, company president Mike Rasmussen made what he called "very, very low" revenue projections crucial to the company's Chapter 11 reorganization plan. On June 3, the court will examine those projections and decide whether to continue considering the plan. Rasmussen said the company will finish projects it was working on when the equipment was seized Feb. 2 and on custom requests that have come in since the mill closed. Six employees will return to work today and Rasmussen hopes to have that number up to 20 within the next eight weeks, assuming the court allows the mill to continue operating. There were 40 employees when the mill closed at the end of February. While the company still has to prove it can carry out the plan, Rasmussen said he is confident because customers want the company's products. "It's all demand driven," he said. "We just have to do what needs to be done." In February, Heller Financial Services had the plant's equipment seized as collateral on a $658,000 promissory note that Parsons Pine defaulted on. The equipment was set to be auctioned off until Parsons Pine filed for Chapter 11. Heller is a secured creditor in the case. Scott McCleery, attorney for Heller, says his client expected the ruling and isn't opposed to the mill operating -- if it pays its debts. "The creditors aren't out to hurt people or cost people jobs," McCleery said. "If they can meet the projects, fine. We're just not sure they can meet the projections. Ultimately the market will determine that." Among the other creditors is Wood Products Enterprises, the holding company for former owners Jerry Sivin and founder Jim Parsons. Wood Products Enterprises claims it is owed $620,000. Today's Business Index Mail Tribune Copyright � The Mail Tribune 1999, Medford, Oregon USA