Owner of Rumford Mill Files for Bankruptcy Protection
The owner of the paper mill in Rumford, which employs about 900 people, has filed for Chapter 11 bankruptcy protection, but no layoffs are expected there. In a statement posted on the NewPage Corp. website, the company says it has begun the process to reorganize its debt in order to position its business for long-term success. Chapter 11 allows a business to restructure its debt, free of the threat of lawsuits filed by its creditors. A letter from NewPage’s President says the company has secured 600-million dollars in financing which will allow the corporation to operate normally. Motions have been filed that would allow NewPage to continue its employee wages and benefits programs.