Red Shield filings reveal mounting debt
Red Shield Environmental and its mill operator, RSE Pulp and Chemical, both in Old Town, owe millions in unsecured claims as part of a bankruptcy filing.
The renewable energy power plant filed for Chapter 11 bankruptcy on Friday, according to a press release from the company's owner. The company laid off about 160 people and has been operating with a 30-employee skeleton staff since June 6, when the facility shut down temporarily because of cash-flow problems. Red Shield's lawyer told Mainebiz the rising cost of wood chips, fuel and chemicals contributed to the company's cash problems.
Red Shield and RSE Pulp owe more than $5.6 million to their largest unsecured creditors alone, according to the companies' bankruptcy filings. An emergency hearing in which the company will seek approval to pay employees for last week's work is scheduled for today, according to the Bangor Daily News. Red Shield maintains it will reopen after the Chapter 11 reorganization.
Most Recent
Most Recent
Comments