By Mike Tony, Charleston Gazette-Mail
CHARLESTON, W.Va. — A federal judge has approved a sale of property a court-appointed receiver took over from Allegheny Wood Products after the prominent hardwood producer abruptly shuttered locations in February that will allow two company sites to keep operating.
The judge on Friday approved the sale contemplated in a letter of intent under which a Lancaster County, Pennsylvania-based flooring manufacturer would acquire — free and clear of all liens and claims — all assets to maintain Allegheny Wood Products sawmills in Greenbrier and Randolph counties for $7.5 million.
The deal comes as Allegheny Wood Products faces a $40 million lawsuit from United Bank alleging the Grant County-based company is on the hook for unpaid loans.
The U.S. District Court for the Northern District of West Virginia approved the agreement between the receiver and AHF LLC, under which AHF will operate what have been Allegheny Wood Products sawmills in Smoot, Greenbrier County, and Norton, Randolph County.
Details of the sale
The purchase price is to be reduced by offsetting the balance due under a note allegedly owed by Allegheny to AHF by roughly $430,000.
Joe Supple, Point Pleasant-based counsel for the receiver, said during a March 27 hearing the sale would affect 80 to 100 employees.
