Baileyville mill buyer eyes Katahdin Paper
Hong Kong investors who recently purchased the former Domtar mill in Baileyville are negotiating to buy the two Katahdin paper mills for $1.
A spokesman for Brookfield Asset Management, owner of the mills in Millinocket and East Millinocket, confirmed that the company is in talks with International Grand Investors Corp., according to the Bangor Daily News. IGIC, part of a Hong Kong holding company, is based in Delaware and represents global investors in pulp trade and imports. It acquired the former Domtar mill in Baileyville in September for $64 million.
Legislators are scrambling to pass a bill deemed critical to the sale, which would allow the state to buy and operate a landfill in East Millinocket that has stymied potential sales due to the financial and environmental liabilities it poses. The Senate preliminarily approved the bill on Monday, and a two-thirds majority is needed in both chambers to send the measure to Gov. Paul LePage, the paper reported.
The East Millinocket mill has been closed since April 1, and the Millinocket facility has been shuttered since 2008. In April, negotiations between Brookfield and another potential buyer, Meriturn Partners of California, ended without a sale.
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