Red Shield Funding Approved

Updated 6 years ago

A U.S. bankruptcy judge in Bangor gave the okay for the company to use 300-thousand dollars to tide the company over until August 20th.

That’s when a 13.6 million dollar investment plan, if approved, would restart the mill and bring more than 160 workers back to work.

Red Shield filed for bankruptcy to re-organize its finances in late June three weeks after it shut down.

28 workers remain on site for maintenance.

Chairman Ed Paslawski says he’s expects red shield to back in business in about three weeks.

&quot:What this is is another step forward and a path to getting the mill back into operation.&quot: Paslawski told TV5 Tuesday. &quot:We’ve signed a term sheet for 13.6 million dollars with Woodside Capital Partners out of Boston, and they’re doing their due diligence and we’re getting the borrowing order ready for the court.&quot:

Lawyer Bob Keach says once some paperwork is signed, the call back to the mill could begin August 21st or 22nd, though not all of the workers would come back at the same time.

Besides Tuesday’s funding approval, the judge also cleared the way for Red Shield to put money down with its utilities companies, so those services won’t be shut off right now.


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