Mills File Agreement With Paper Company

The idled Pulp and Paper of America mills in New Hampshire have filed a $30 million sales agreement with Fraser Paper, a Stamford, Connecticut paper company, late last week, the first step in getting 860 employees back to work.

As part of the bankruptcy court filing, the owner would use the money to pay off the mills' creditors, who support the agreement with the buyer.

The mill complex closed on Aug. 12, blaming high energy costs, slack demand for paper and foreign competition.

Soon after the mill shut down its parent company, American Tissue Inc., filed for bankruptcy.

According to an article in the Associated Press, the arrangement between Fraser Paper and Pulp and Paper of America only includes taking over a pulp mill in Berlin and a paper mill in Gorham, both in New Hampshire. American Tissue has mills in 19 states.

The bankruptcy court will still allow other offers for the mills, which would have to be at least $1.4 million above the $30 million, according to court documents. The mill facility and surrounding property in Berlin alone is valued at $70 million, city officials said.

The two mills had generated some interest from other paper companies in North America. The parent company had been one of the largest producers of tissue paper products. The company had been able to grow through acquiring a host of mills throughout the United States.