- Associated Press - Monday, September 29, 2014

EAST MILLINOCKET, Maine (AP) - Three Maine-based creditors want to move the Great Northern Paper Co. bankruptcy case from Delaware to Maine.

The creditors contend Maine’s attorney general, the towns of East Millinocket and Millinocket and the employees’ unions all support moving the federal bankruptcy proceedings to Maine. The creditors’ petition seeks to stop a meeting of creditors that’s scheduled for Oct. 15 in Delaware, where the holding company is based.

Great Northern, which is managed by a private equity firm, New Hampshire-based Cate Street Capital, filed for Chapter 7 bankruptcy last week. All told, the company owes more than $50 million.

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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