Lincoln mill to continue operating through bankruptcy auction
The Lincoln paper mill that filed for Chapter 11 bankruptcy Monday has lined up an initial bidder and will continue operations under a $2.3 million credit extension, the Bangor Daily News reported Wednesday.
Keith Van Scotter, CEO of Lincoln Paper and Tissue, told the newspaper that the extended credit line approved by a bankruptcy judge Tuesday will mean the specialty issue maker will continue to operate normally as it moves toward an auction.
The company hopes to close the sale in November. The mill has about 179 workers, down from 400 in 2013.
Van Scotter declined to review the identity of the stalking horse bidder to the paper mill.
Van Scotter cited struggles recovering from a smelt water explosion in a chemical recovery boiler in November 2013 as a reason for the bankruptcy filing. The loss of the boiler led to about 185 layoffs, ended paper production at the mill and forced it to buy pulp from off-site sources.
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