Cate Street appeals $9M order over gas contract
Cate Street Capital, the former owner of the now-closed Great Northern Paper mill, is seeking to overturn an arbitrator’s order to pay $9 million to a Boston-based company that had been contracted to deliver natural gas to the East Millinocket mill.
The Portland Press Herald reported that the order was made Feb. 4 in favor of Xpress Natural Gas, which filed a claim for the money a few months after the mill closed last year, saying that Cate Street did not fulfill its contract. Cate Street filed an appeal of the arbitrator’s decision in Cumberland County Superior Court on April 13. The filing was recently made public.
Before the mill’s closing, Xpress Natural Gas had reached an agreement to provide gas to the mill from its Baileyville facility. The company claimed that it paid $4.5 million to buy equipment needed to fulfill the agreement, and that it had also provided Cate Street with a $1.4 million loan to help with the mill’s natural gas conversion.
The money awarded to Xpress Natural Gas includes legal fees and the loan’s interest.
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