Ch. 7 bankruptcy sought for Old Town mill
Four creditors of the shuttered Old Town Fuel and Fiber are seeking to force the company into involuntary Chapter 7 bankruptcy in order to recoup over $1 million in debt.
The Bangor Daily News reported that the four companies, including Bangor-based Portage Wood Products, filed a request on Friday with U.S. Bankruptcy Court in Bangor, nearly two months after the Old Town mill abruptly suspended operations and laid off 180 workers.
Red Shield Acquisition LLC, which will be able to contest the filing, also owes the town of Old Town more than $1 million in overdue taxes, and another $1 million in taxes this year.
Six companies, a few of which are seeking the bankruptcy filing, have previously filed liens or notice of claims to recoup owed money from Red Shield.
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Old Town mill suspends operations 'indefinitely,' lays off 180
Shuttered Old Town mill owes over $2M in taxes
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Sale of Old Town mill moves forward
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