Red Shield Will Sell

Updated 6 years ago

A lawyer for the company filed the paperwork Thursday to sell the mill – which has been in Bankruptcy since June.

An 11-and-a-half million dollar offer is on the table for the facility, but that’s basically just a starting bid.

More offers are expected to come in before the sale of the property in October.

And we’re told, so far, all of the interested parties have plans to re-open the mill.

The head of Red Shield had been pushing for a 13-point-6 million investment plan to give the company the cash it needed to start up again.

But Red Shield Lawyer Bob Keach tells TV5, one of the parties in that deal has now pulled out.

Recently the company started pursuing the possible sale of the mill, as well.

And Keach says there’s now an offer to buy it by a company called White Box Red Shield.

More than 160 people have been off the job since the mill shut down at the beginning of June.

28 have remained on board to maintain the mill for start up.

After weeks of Bankruptcy Court proceedings and requests to money to keep the mill running in idle, Keach says the plan to sell Red Shield gives it a definite end to the process. &quot:This mill will be sold. There is a current offer. If nothing else happened but the acceptance of that offer, the mill would be re-opened as soon as possible, after the end of October. So if i’m one of those employees, i would be encouraged to know that by the time snow flies, this mill will be reopened and we’ll begin employing people again.&quot:

Keach says the company that buys the mill will have to pay off about 10-million dollars in debt that Red Shield owes.

This plan has to be approved by a U.S. Bankruptcy Court judge first.

It’s scheduled to go before the judge next Tuesday.

After that offers to buy the mill would be taken until October 20th.

Red Shield would then be auctioned off on October 22nd and a final hearing on the sale would take place the next day.

The company still needs money to maintain the mill for startup until it’s sold.

Red Shield will make a request for 1.05 million dollars at that same sale plan hearing next Tuesday.

That money will tie the company over until October 27th, when a new owner would come in.


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