Buyer of Lincoln paper mills says it will look for operator
The asset liquidation group that purchased the Lincoln Paper and Tissue mill says it hopes to attract an operator to restart the mill, but union and town officials are skeptical that will happen.
The Bangor Daily News reported that the venture led by Boston-based Gordon Brothers Group closed on its $5.95 million purchase of the Lincoln mill late Wednesday after winning the mill in a bankruptcy auction last month.
Bill Firestone, the president of one member of the joint venture, Capital Recovery Group, told the BDN that the group is paying to keep the mill at a warm idle and “would like nothing more than to have an operator restart the plant and create jobs.”
However, union have said that companies looking to operate the mill likely would have come forward during the bankruptcy auction, according to the BDN. None of the four eligible bidders that participated in the auction were paper mill operators.
The chairman of the Lincoln Town Council, Steve Clay, also told the BDN that community members should be skeptical.
Prior to the sale closing, state environmental regulators worked out an arrangement for some proceeds of the sale to environmental cleanup at the site, the Bangor Daily News reported. The deal will set aside $50,000 for a fund that could help with environmental remediation costs, which could be as high as $80,000 in the near future and in the millions for full remediation.
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