Second GNP company files bankruptcy
A second company related to Great Northern Paper Co.’s East Millinocket mill has filed for Chapter 7 bankruptcy, which one lawyer hopes could lead to a reopening of the mill.
The Bangor Daily News reported that the second bankruptcy filing was made on Friday by GNP East Inc., the company that owns the land and buildings at the East Millinocket mill. The company claimed between $10 million and $50 million in assets and between $1 million and $10 million in liabilities, according to the Bangor court filing. Chapter 7 bankruptcy will allow the company to sell and liquidate its assets in order to pay off its creditors.
The filing by GNP East comes after GNP Maine Holdings LLC, which owns the papermaking equipment at the mill, filed for Chapter 7 bankruptcy in September. GNP Maine Holdings owes a total of $65 million to 1,159 creditors and has only $28.15 million in assets. The company’s bankruptcy case was moved from Delaware to Maine because most of its creditors are located there, though the two largest creditors opposed the venue change.
Attorney Randy Creswell, who is representing GNP’s appointed bankruptcy trustee, told the BDN that the two bankruptcy filings could eventually allow an investor to buy the East Millinocket mill and reopen it. He said Pasquale “Pat” J. Perrino Jr., the bankruptcy trustee, is hoping to reorganize the two company’s assets under one corporation.
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