NY Investment Group To Buy Closed Mill

PORTLAND (NEWS CENTER) -- A New York investment group called Patriarch Partners would buy the Old Town Pulp and Paper mill for $18,875,000 under an agreement approved by a federal bankruptcy court judge.

The investors plan to reopen the mill, hire back workers and breath new life into the community.

"This is what we do. We buy and help rebuild, turnaround middle market companies, for the most part, based in the U.S." said Bo Williams, one of the investors.

Governor John Baldacci also said the mill has potential as a producer of alternative energy and as a pulp mill. In court, the group said it does plan to continue operations similar to those of Red Shield's before it declared bankruptcy in June.

"This is good news for workers and good news for the community," said the governor. "I have spoken with Patriarch CEO Lynn Tilton, and I am impressed with her vision for the facility and her commitment to get people back to work."

The $30 million grant from the Department of Energy to start an ethanol plant will transfer to the new owners upon close of sale.

Red Shield Environmental and RSE Pulp and Chemical operated the mill until filing for bankruptcy this summer. 160 people lost their jobs when that happened. But now they all could be hired back under the sale agreement approved in federal bankruptcy court Thursday.

According the Governor Baldacci's office, the sale to the group Patriarch Partners is expected to be finalized on Monday, October 27.