Patriarch Partners eyes Katahdin mills
The firm that revived the former Georgia-Pacific facility in Old Town is eyeing the Katahdin Paper Co. mills in Millinocket and East Millinocket.
Lynn Tilton, founder and CEO of Patriarch Partners, said in a statement Friday the company has begun due diligence and is "at the very early stages of exploration" of acquiring the two mills, one of which has been idle since 2008, according to the Bangor Daily News. Part of Patriarch's exploration includes studying how much it would cost to upgrade the machinery at the two mills to produce high-end magazines and glossy paper, and whether it's economically feasible. Patriarch Partners in 2008 bought the Old Town Fuel & Fiber facility and put 200 people back to work. A spokesman for Twin Rivers Paper Co., which manages the mills, told the paper the company has been discussing a sale of the mills for months.
The two mills are owned by Toronto-based Brookfield Asset Management. The East Millinocket mill makes newsprint and directory-grade paper and employs about 450 people, while the Millinocket mill has been shut down since 2008. Brookfield has been working to reopen the mill with a biomass boiler, but is still looking for a partner to run the boiler and must secure a contract with state regulators to sell surplus electricity, according to the paper.
Go to the article from the Bangor Daily News >>
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