HALSEY - Out-of-work mill workers learned Thursday that Ableco Finance LLC of New York is negotiating with the union to get the Pope & Talbot pulp mill up and running as soon as possible.

Ableco, a subsidiary of Cerberus Capital Management, is a major lien holder against bankrupt Pope & Talbot and has submitted a bid for the mill.

The union is negotiating a new labor contract with Ableco, which contacted the union to let representatives know of its intentions soon after the shutdown, according to Ernie Lamoureux of the United Steelworkers, which represents the Halsey workers.

Lamoureux and union reps from the mill have been in contact with the bidder throughout the week.

"It's really a matter of working out an agreement," Lamoureux said. "We could be running within the next two weeks."

Pope & Talbot shut down most operations at the Halsey mill on May 9 after converting from Chapter 11 bankruptcy to Chapter 7 liquidation.

The move put nearly 180 employees out of work.

A small crew is still on hand keeping the boiler room operating to supply service to

the neighboring Georgia Pacific paper mill.

"Ableco wants to assure that their customer base will be back. They are as anxious as we are to get going," said Lamoureux.

"It's very encouraging," added union president Leon Harlson. "I believe we will be back at work soon."

According to Lamoureux, the Ableco group has been the only bidder to contact the union or the court-appointed trustee, George Miller.

"There have been rumors that as many as 10 bidders are interested, but no one has come forth," he said.

Prospective buyers have until May 30 to submit bids. If any other bidders come forward, an auction will be held June 3.

"Ableco has shown an interest in working with the union," Harlson said.

"We may have to take some tough lumps," Lamoureux admitted. "It won't be business as usual, but the main thing is getting everybody back to work."

Harlson said that negotiations were expected to continue until an agreement is reached.

Ableco is a specialty finance company with investments totalling more than $4 billion.