Great Northern Paper owes Louisiana Creditors Millions

PORTLAND, ME (AP) — Recent court filings have revealed the depths of Great Northern Paper Co.'s financial hole.

         Great Northern, the operator of the paper mill in East Millinocket, Maine, filed for bankruptcy last month.

         The Portland Press Herald reports that the company, managed by New Hampshire-based private equity firm Cate Street Capital, has roughly $28 million in assets, but has liabilities of slightly more than $65 million.

         The mill shut down in late January and laid off more than 200 workers a few weeks later, citing rising costs for energy and wood. The mill produced newsprint and paper for the book publishing industry.

         The two largest secured creditors — Stonehenge Community Development of Baton Rouge, Louisiana, and Enhanced Capital New Market Development Fund of New Orleans — say they are owed $20 million each.

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