GNP bankruptcy case moves to Maine
The bankruptcy case of Great Northern Paper Co. is switching venues from Delaware to Maine after a federal judge last week made the ruling sought by several creditors.
The Portland Press Herald reported that two of GNP’s largest creditors, Louisiana-based Stonehenge Community Development LXI LLC and Enhanced Capital New Market Development Fund X LLC, opposed the change in venue and have threatened to foreclose on GNP’s East Millinocket mill. GNP owes the two lenders $40 million in secured debt.
According to the Bangor Daily News, GNP owes a total of $65 million to 1,159 creditors and has only $28,15 million in assets. The Maine attorney general’s office, the towns of Millinocket and East Millinocket and more than 20 other creditors had asked to move the bankruptcy case to Maine because 56% of GNP’s creditors are located there.
GNP filed for Chapter 7 bankruptcy in September, indicating that the company intends to sell and liquidate its assets in order to pay off debt to its more than 1,000 creditors.
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