NY firm buys Red Shield
Patriarch Partners, a private equity firm in New York City, has purchased Red Shield Environmental in Old Town.
The firm won an auction for the company held Wednesday with a $18.9 million bid for the pulp and paper mill. Verso Paper Corp. of Memphis, Tenn. and Whitebox Advisors of Minneapolis, Minn. also bid for the company, which is liquidating its assets as part of Chapter 11 bankruptcy. The sale is expected to be finalized Oct. 27, according to a press release from the governor.
Bob Keach, attorney for Red Shield, told Mainebiz that Patriarch plans to reopen the mill as quickly as possible and to hire back some or all of the 160 employees laid off when the mill filed for bankruptcy and closed in June. "I don't know what the long-term plan is, but the short-term plan is to run it as a pulp and paper mill" as it was under Red Shield, Keach said.
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