Katahdin Paper deal expected today
New Hampshire-based Cate Street Partners this morning is expected to reach a deal to buy the two shuttered Katahdin Paper Co. mills in Millinocket and East Millinocket, though the sale price has still not been disclosed.
Officials from the firm and state and local leaders worked into the night yesterday to finalize details of a provisional deal, and state officials were expected at 9 a.m. today to sign papers to transfer environmental permits from Brookfield Asset Management to Cate Street, according to the Bangor Daily News. A final closing is expected later this month. Cate Street Capital, which specializes in energy projects, plans to establish the Great Northern Paper Co. LLC and restart production in East Millinocket as soon as possible, with an Oct. 30 deadline to fill orders, Senior Vice President Richard Cyr told the paper. The Millinocket mill would reopen a few months later based on market conditions.
Cyr, who would be CEO of Great Northern, said he hopes to meet with company officials today to discuss hiring details, and as many as 250 workers could return to the job. Cate Street also plans to invest about $25 million into the mill.
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