Pope & Talbot Inc. has scrapped a planned auction of its lumber business after competing bidders failed to beat International Forest Products Ltd.’s $69 million offer.

The Canadian lumber and pulp producer has set a Jan. 7 court date to seek approval of the sale to Interfor from the U.S. Bankruptcy Court in Wilmington, Del., according to court papers filed Monday.

After more than 150 years in business, Pope & Talbot sought court protection from creditors in Canada in October and the United States in November, squeezed by the slowdown in the U.S. housing market and tough credit conditions. It has been put on a tight time schedule by lenders who are financing the insolvency proceedings.

Posted: 12|19|07 at 10:31 am. Filed under: US News.