PORTLAND, Maine — The United Steelworkers union has filed an objection to the proposed sale of the Lincoln Paper and Tissue mill to a company that does not seek to make tissue paper or that could operate only part of the mill.
The objection comes in advance of a 10:30 a.m. hearing Friday, at which the mill’s owners will seek court permission for the sale, which could also meet with objections from the Maine Department of Environmental Protection and other parties.
Jeff Young, attorney for the union, said Friday morning that mill CEO Keith Van Scotter emailed employees late Thursday to disclose details of the sale proposal.
The email, Young said, indicated the sale proposal did not include the current union contract. Young said the union plans to dispute the company’s ability to craft a sale agreement that does not include the union contract.
A consortium led by Boston-based Gordon Bros. placed the highest bid in the auction, at $5.95 million, according to CEO Keith Van Scotter.
The bankruptcy court will hear arguments about the various offers made on the mill during the hearing.
Young said Friday there were two offers outstanding on the mill, one that could be worth more, but there’s only a guarantee of the $5.95 million offer.
Bidders were able to craft sale agreements that included different assets and terms, such as an option on whether to include the land underlying the mill.