'Mud season' delays GNP payments to creditors
Great Northern Paper Co., owned by Cate Street Capital of Portsmouth, N.H., is behind on payments to a number of creditors, but parent company officials say their plans to build a torrefied wood in Millinocket and Eastport remain on track.
The Bangor Daily News reported the company attributes its late payments to higher wood-harvesting costs during the period of late spring known as mud season.
Among the company's creditors are the town of East Millinocket, which the company owes about $355,654 in property taxes, since Feb. 6, the paper reported.
A company spokesman told the paper that those debts come as part of the regular business cycle for the company and they would be paid.
Separately, the company is pursuing an amendment to the state's New Market Tax Credit program that would allow it to access more tax credits that could be used to attract financing for its torrefied wood plants in Millinocket and Eastport.
The paper reported legislators in the House gave approval Tuesday to LD1109, which will be up for deliberation in the Senate today. The bill would allow the Finance Authority of Maine to help subsidiaries of companies — for example, Thermogen — receive funding when their parent companies have already received tax credits.
Parent company Cate Street Capital already has received $50 million in financing: $40 million from the state's New Markets Capital Investment Program tax credit and $10 million in federal credits.
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