Red Shield gets loan, entertains offers to sell
Red Shield Environmental in Old Town yesterday received a short-term loan to keep the mill prepared for a restart, but at the same time asked the bankruptcy court for permission to entertain offers to sell the mill if it's not able to line up long-term financing.
A federal judge yesterday authorized a short-term, $500,000 loan to allow Red Shield and its subsidiary, RSE Pulp and Chemical, to keep its mill idling as it waits for court approval of a $13.6 million financing package from Boston-based Woodside Capital Partners of Massachusetts that could save the mill, Portland news station WCSH 6 reported. The financing package would allow Red Shield to restart the mill and rehire 160 workers who were laid off when the mill declared Chapter 11 bankruptcy in June.
Red Shield's attorney, Robert Keach, asked for court permission to sell the mill if the investment deal does not work out. Two companies, including Whitebox Advisors of Minnesota, have indicated interest in buying the mill, the news station reported.
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