- Associated Press - Saturday, October 4, 2014

EAST MILLINOCKET, Maine (AP) - A federal judge has ordered the Great Northern Paper Co. bankruptcy case to be moved from Delaware to Maine.

Three Maine-based creditors wanted the case moved.

The Portland Press Herald (https://bit.ly/1xPof6z ) reports that the judge made the decision on Friday, despite the threat of two of the company’s largest lenders foreclosing on the closed East Millinocket paper mill property.

Great Northern, which is managed by a private equity firm, New Hampshire-based Cate Street Capital, filed for Chapter 7 bankruptcy on Sept. 22. All told, the company owes more than $50 million to over 1,000 creditors.

Chapter 7 proceedings typically involve liquidation of a company to repay creditors. But some are holding out that the East Millinocket mill could continue operating as a paper mill.



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Information from: Portland Press Herald, https://www.pressherald.com

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