VANCOUVER, British Columbia (AP) — Bankrupt forestry company Pope & Talbot Inc. had its court protection from creditors extended until Monday.

Chief Justice Donald Brenner of the Supreme Court of B.C. extended the creditor protection Wednesday as lawyers worked out the costs of closing three mills — two in British Columbia and one in Oregon — that employ about 1,000 people

A deal to sell the mills to an Asian company fell through last week, and the mills have started to wind down operations. The court extended its creditor protection when creditors refused to provide financing to keep the mills alive, and the company sought a new buyer.

Together, the British Columbia mills employ roughly 780 people. The Halsey mill south of Portland, Ore., had a work force of 180 in February.

Also Wednesday, lawyers representing both Western Forest Products Inc. and Canfor Corp. argued that Pope & Talbot is in breach of an agreement to pick up wood chips from their mills.

Both argued the stockpiles of wood chips are an environmental hazard and a decision must be made to remove them.

An agreement to sell the mills to PT Pindo Deli for US$105.3 million collapsed Friday. PT Pindo Deli is a subsidiary of Asia Pulp and Paper, which is owned by Indonesia’s Sinar Mas Group, Asia’s largest paper producer.

No reason for the transaction’s failure was given.

Pope & Talbot, a 160-year-old Portland-based wood products company, filed for bankruptcy in November after fighting a losing battle with the slumping U.S. housing market, a strengthening Canadian dollar which hurt its exports from B.C. into the United States, and high debt.

At the time of its bankruptcy, the company had eight mills, including several sawmills and the three pulp mills.

Last week, the company completed the sale of its sawmills in Grand Forks and Castlegar, B.C. to International Forest Products Ltd., a Vancouver company known as Interfor.

Neiman Enterprises Inc. bought the company’s Spearfish, S.D. sawmill and timber assets.