Sales process OK'd for GNP mill
The sales process for the Great Northern Paper Co. paper mill in East Millinocket is moving forward after receiving approval from a bankruptcy court judge on Friday.
The Associated Press reported that U.S. Bankruptcy Judge Louis Kornreich in Bangor has approved an opening auction bid, known as a “stalking horse” bid, for the mill. The stalking horse bid was made by GNP Acquisition, which is offering to buy the mill’s papermaking equipment for $2.6 million, according to an attorney representing GNP bankruptcy trustee Pasquale J. “Pat” Perinno Jr. The company is not interested in buying the mill’s land, though it will have an option to do so for $350,000.
Any competing bids, which are due Dec. 1, must be at least $2.9 million to beat GNP Acquisition’s bid and $3.25 million if they included the purchase of land. If there are no other bids, GNP Acquisition would be allowed to move forward with its proposed purchase.
The proceeds from the sale would be divided between GNP East, the owner of the mill’s real estate, and GNP Maine Holdings, which owns the mill’s building and papermaking equipment. Both companies, which are managed by New Hampshire-based investment firm Cate Street Capital, have filed for Chapter 7 bankruptcy.
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Great Northern Paper files for Ch. 7 bankruptcy
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