Rock, Paper, Scissors

Written by CFB Blogger. Posted in Blog

Great Northern Paper Company, facing increasing pressure from their creditors, has recently filed Chapter 7 bankruptcy in bankruptcy court in Delaware. George Gervais, commissioner of Maine’s Department of Economic and Community Development, where the company is located, remains committed to finding a way to keep the paper mill alive. In an article in MPBNNews, Gervais stated, “’It just strengthens our resolve to find an investor, someone to carry on with Great Northern Paper and bring that region back to prosperity. We’re not going to take our eye off that prize.’” However, Great Northern’s creditors are hoping to recoup lost money and have filed an involuntary Chapter 7 bankruptcy petition in Bangor, Maine. East Millinocket, the home of the paper company, may place a lien on the company in an attempt to not be left out of any financial windfalls. East Millinocket Selectman Mark Marston said they are hoping that an investor can be found to rescue the company but that the hometown taxpayers also must be protected. “’It’s awful hard for a town – and the town motto is ‘The Town that Paper Made’ – to be filing a lien on a mill that’s been in the town since 1907.’” East Millinocket has until October 15 to file the lien for overdue taxes, which totals about $670,000 dollars. The company, which is now owned by New Hampshire-based Cate Street Capital, has, reportedly, struggled for years. They shuttered the East Millinocket mill in January, laying off over 200 workers, leaving a skeleton crew of only about 40. Gervais added, “’There are certainly a set of unfortunate circumstances that bring us to this point and I don’t think the whole story has been told yet.’” President of Great Northern Paper Company is Ned Dwyer, who declined to comment on the filing of the Chapter 7 bankruptcy. If you have been thinking about filing Chapter 7 or Chapter 13 personal bankruptcy due to failed real estate or other investments, contact the attorneys at Client First Bankruptcy. We are experienced and knowledgeable in the field of all aspects of personal bankruptcy. Hiring a Client First Bankruptcy attorney to counsel you through the process and provide representation may be the key to your financial freedom. We have helped thousands of consumers like you discharge their debts. For your free initial phone consultation, please call us toll-free at 800-383-6004 today and log onto www.clientfirstbankruptcy.com for more information. Our well-informed and compassionate attorneys answer their phones Monday through Friday from 8:30 a.m. – 6:00 p.m. Central Time.