- Associated Press - Tuesday, September 23, 2014

EAST MILLINOCKET, Maine (AP) - Once a giant in the paper industry, Great Northern Paper Co. LLC has filed for bankruptcy.

The company, based in East Millinocket, Maine, filed for Chapter 7 bankruptcy Tuesday in a Delaware court with a filing that named hundreds of creditors. The move may allow the company to pay its creditors by liquidating its assets.

Great Northern, like many in the paper industry, has faced significant financial challenges for years. It was among the top paper companies in the middle and late 20th century, producing at one point in the 1960s about a sixth of the newsprint made in the United States, according to an article on Harvard Business School’s website.

New Hampshire-based Cate Street Capital, which owns the company, closed Great Northern’s East Millinocket mill in January because of low prices for paper and high costs for wood, pulp and energy. More than 200 workers were laid off.

Cate Street Capital did not return a call seeking comment.

East Millinocket’s town treasurer, Beverly MacLeod, declined to comment.

A call to Gov. Paul LePage’s office was not returned. He signed a bill in April designed to help reopen the mill after it closed.

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