UPDATE: Deal Nearly Done to Sell Katahdin Paper Mills
It’s a big day for folks in the Millinocket area. The CEO of the company that wants to buy the Katahdin Paper mills tells TV 5 things are in place for the deal to close by midnight Thursday. Richard Cyr of Cate Street Capital tells us a meeting Thursday morning went well and all hurdles have been cleared with the exception of securing environmental permits. He believes that will be worked out in time.Thursday at midnight is the deadline for the deal to go through.Cyr says that’s because the company faces a tight deadline to begin making paper and fill overseas orders by October 30th.If all goes as planned, work will start Monday and the company plans to hire back 200 to 250 workers in stages. That’s at least half of the people who lost their jobs when the mill in East Millinocket closed in April.Cate Street spokesperson Scott Tranchemontagne says, “We effectively have six weeks to get people hired back to work, get paper machine no. 6 up and running and produce enough virgin paper to satisfy the pending orders. We have to as they say in the business get the paper on the water by the end of October.”Tranchemontagne says officials are very optimistic the deal will come together, if not by midnight, sometime early Friday morning. A final closing is expected later this month.