Lincoln Paper and Tissue LLC, based in Maine, US, recently filed for Chapter 11 bankruptcy protection, estimating it has between $10 million and $50 million in both debts and assets, according to Bangkor Daily News.
Company co-owner Keith Van Scotter said he expects the mill will be auctioned in 45 days, with a stalking horse bidder setting the price to beat.
"I'm disappointed that we had to take this route," Van Scotter said, as quoted by Bangkor Daily News.
In November 2013, a smelt water explosion occurred in the chemical recovery boiler resulting in its destruction. The destruction of the boiler, considered too expensive to replace, resulted in the layoff of about 185 of the mill's 400 workers, ended paper production at the facility and forced the mill to buy pulp from off-site sources. According to United Steelworkers Union, this was a key element to the bankruptcy.
