PORTLAND, Maine — The Boston-based Gordon Brothers Group closed its $5.95 million purchase of the Lincoln Paper and Tissue mill late Wednesday and said it’s holding out hope that a “strategic operator” still could restart it.
The company, leading a joint venture of asset liquidators, said it will keep the mill in a warm idle.
“We are investing capital to maintain a warm idle and would like nothing more than to have an operator restart the plant and create jobs,” said Bill Firestone, the president of one member of the joint venture, Capital Recovery Group.
Union officials said after approval of the mill’s sale to Gordon Brothers that a company looking to operate the mill likely would have come forward during the bankruptcy auction. None of the bidders involved sought to operate the mill.
Lincoln Lakes region residents probably should treat any hopes of the mill restarting with a healthy skepticism, Lincoln Town Council Chairman Steve Clay said.
“They’re talking a good game right now. Let’s just see if they follow through with it,” Clay said Wednesday of the mill’s new owners. “I think they are trying not to panic the town but that doesn’t necessarily mean that they will get someone to run it.
“I hope they do, but I am not going to get my hopes up until I see it happen,” Clay added.
The sale came after mill officials said they contacted 169 different companies they felt potentially would have interest in buying it. That resulted in 36 companies signing nondisclosure agreements and an initial bid of $5 million from Los Angeles-based distressed asset investor Reich Brothers.
Gordon Brothers said in its announcement of the sale closure that it would sell the mill’s assets if it doesn’t find anyone looking to restart production.
“In the event an operator does not materialize, we will provide buyers with the chance to purchase some highly desirable, late model paper and tissue equipment,” Bob Maroney, president of the commercial and industrial division of Gordon Brothers Group, said.
The consortium has a one-year option to purchase the mill land and buildings for a pre-determined price, officials have said.
The Town Council likely will discuss the mill situation when it meets at 7 p.m. Monday, Clay said.
As far as he knows, no town officials have had discussions with the new owners, Clay said.
The council cut about $500,000 from its budget two years ago in anticipation of losing the mill’s revenue due to a closure, Clay said. The cuts included the layoff of one full-time firefighter, a part-time library clerk and a part-time clerk in the town office, officials have said.