<B>Eastern Pulp &amp; Paper Files for Chapter 11</B>

Eastern Pulp & Paper Corp. has filed for protection from its creditors under Chapter 11 of the Bankruptcy Code. Eastern is the parent company of paper mills in Lincoln, Me., and Brewer, Me.

The filing late last week lists debts totaling $181.3 million and assets of $187.8 million. At the Lincoln facility, debts are $110.66 million compared with assets of $113.97 million and at the Brewer facility, debts are $70.65 million compared with assets of $73.84 million, according to court documents, according to an article by the Bangor Daily News.

Company officials said the filing would not affect about 1,000 employees who work at the two mills, or the mills' operations, customers and suppliers.

The owner of Eastern Pulp & Paper Corp. anticipates a successful Chapter 11 with the company emerging stronger and healthier.

One of the key reasons for the company filing for bankruptcy protection is the depressed printing and writing paper markets, which in some cases brought prices below 1998 levels; higher energy and raw material costs; and the need for major environmental expenses. The company has spent nearly $70 million for environmental improvements during the last decade.

Eastern Paper in Brewer operates three paper machines and two coaters, which have been rebuilt since 1990. The Brewer mill produces silicone-coated paper for labels and fine printing and writing papers. The Lincoln mill, which has two paper machines and two tissue machines, produces pulp, specialty paper and tissue. Nearly all of the pulp used in Brewer is produced at the Lincoln mill.