The corporation that owns Great Northern Paper
’s East Millinocket, Maine, mill and the land underneath it has recently filed for Chapter 7 bankruptcy, less than a month after its sister corporation, which owns the mill’s paper-making equipment, also filed for bankruptcy.
For the prequel to this bankruptcy article, please refer to the October 10 blog on the Client First Bankruptcy
web site at www.clientfirstbankruptcy.com
From an article in the Portland Press Herald
, the Chapter 7 bankruptcy filing by GNP East Inc
. in federal bankruptcy court in Bangor, Maine, reveals assets of between $10 million and $50 million and liabilities of between $1 million and $10 million.
Its sister corporation, GNP Maine Holdings Inc
., filed for Chapter 7 bankruptcy in Delaware in September, although that case has since been transferred to Maine. GNP Maine Holdings shows $65 million owed to creditors and just over $28 million in assets. According to the company’s detailed financial report, it owes $42.34 million to such secured creditors as Stonehenge Community Development
and Enhanced Capital New Market Development Fund
, which hold mortgages on the mill. $22.6 million is owed to the company’s unsecured creditors. The company also owes laid-off workers some $140,000 in wages, salaries and commissions.
At press time, it is reportedly unclear whether the two bankruptcy cases will be combined.
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