AbitibiBowater seeks court approval to sell Lufkin plant

WILMINGTON, DE (KTRE) - AbitibiBowater is seeking a court's permission to sell its idled Lufkin plant for $20.5 million, according to an article published on Bloomberg.com.

The company wants to sell the plant for $20.5 million to CIT Partners LLC, according to the article.

While it is not clear what CIT will do with the property, the article states the broker for the property said the property is good for "industrial redevelopment only."

AbitibiBowater said CIT is the only remaining interested party in buying the company since it closed in December 2007, the article stated.

AbitibiBowater must have the bankruptcy court's permission to sell the plant since it filed for Chapter 11 protection on April 16.

Angelina County Economic Development Director Jim Wehmeier confirmed a specific group of investors are wanting to purchase the property to redevelop it for multiple users. While this group was formed for this individual purchase, the investors are experienced buyers.

The property will adjoin the industrial park the city is in the process of redeveloping, making for 1,200 total acres for industries to reside, Wehmeier said.