Loan may rescue Red Shield
Red Shield Environmental and its subsidiary, RSE Pulp & Chemical, may be back online soon if a new loan is approved.
The U.S. Bankruptcy Court in Bangor will hold a hearing on Wednesday on a $13.6 million loan offer from Woodside Capital Partners of Massachusetts, according to the Bangor Daily News. If approved, the loan will be used to pay lenders like Chittenden Bank of Burlington, Vt., and the Finance Authority of Maine, as well as to restart the mill and bring employees back to work, the paper reported.
Red Shield and RSE, which operate the former Georgia-Pacific mill in Old Town, filed Chapter 11 bankruptcy in June and laid off 160 of their roughly 190 employees. The companies blamed their troubles on high material and fuel prices, and court filings show they owe more than $16 million to creditors.
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