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July 27, 2011

Brookfield delays mills' dismantling

By The Mainebiz News Staff

Brookfield Asset Management is delaying its plans to disassemble two northern Maine paper mills to give the state more time to find a buyer.

The Toronto-based company had planned to begin dismantling the Katahdin Paper Co. mills in Millinocket and East Millinocket July 31, but will hold off for an unspecified amount of time as the state negotiates with potential buyers, according to the Bangor Daily News. The Maine Department of Economic and Community Development has been in talks with several interested parties, and Gov. Paul LePage in a statement said the state is "cautiously optimistic" a new owner will be found. Hong Kong-based International Grand Investors Corp. is reportedly in talks to buy the mills for $1, though town leaders said negotiations have recently hit complications. Local business owner Galen Hale, who owns a scrap metal shop and stove store, is also interested in buying the properties.

Brookfield previously planned to close the mills in June, but pushed the deadline to July. An initial deal to sell the mills to California investment firm Meriturn Partners broke down in April. The Millinocket mill closed in September 2008, idling about 150 workers. The East Millinocket mill closed in April, affecting 450 workers.

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