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The Blue Heron paper mill in better days.

(The Oregonian/file)

Another buyer for the bankrupt Blue Heron mill property surfaced Friday.

The Irvine, Calif.-based Shopoff Group made a $2.8 million offer on the Oregon City property, far below those of two previous prospective buyers.

Terms of the deal call for Shopoff to close by June 16 ,although the deadline could be extended by 30 days.

Shopoff is a diversified real estate with a history of buying distressed or underperforming properties. The company is active in several states, primarily California and Texas, but does not appear to have any projects in Oregon.

The purchase price represents just half the $5.75 million still owed to creditors.

After a property tax bill of nearly $500,000 is paid, net proceeds from sale will go two major creditors, the Oregon Department of Energy (owed $1,163,000) and Noble Americas Energy Solutions ($4,232,823). Former mill workers who were part of an employee stock ownership plan, are expected to receive a share.

Just who gets how much is being negotiated, said trustee Peter McKittrick, who was appointed by the bankruptcy court to liquidate the Blue Heron's assets.

"Everyone wants a sale it's just a question of reaching a deal we can all live with," McKittrick said Sunday.

The Blue Heron Paper Co. filed for bankruptcy at the end of 2009 and closed in February 2011.

The 23-acre site was on the market for nearly 2½ years before anyone made an offer.

Last summer, another Irvine, Calif. company, Eclipse Development Group, made a $4.1 million offer. The deal fell through in October when Eclipse was unable to come up with the money.

Langley Investment Properties backed away from buying the mill last month after a U.S. Bankruptcy Court judge approved a purchase agreement in December. Portland-based Langley said it needed more time to evaluate the property.

Langley had 24 months to compete the purchase and would have paid $4.9 million if the deal closed in 12 months. After that, the price went to $5.75 million. Langley would have $30,000 a month in return for the lengthy closing deadline.

The monthly payment would have offset the cost of maintaining the property, which has around 50 buildings.

-- Steve Mayes