MRC Files for Bankruptcy Protection

Mississippi River Corp., a Natchez, Miss., deinking pulp operation, has filed for Chapter 11 bankruptcy protection. The company has operated at the site for close to 20 years. The company filed for protection Feb. 16 in the U.S. Bankruptcy Court, Southern District of Ohio.

According to published reports, MRC owed around $3.3 million to 20 top unsecured debtors. The Natchez Democrat notes that the largest debtor is Waste Management Inc., which is owed around $500,000.

The Natchez facility has a nominal production capacity of between 10,000 - 12,000 tons per month. On its web site, the company states that it produces the only U.S. FDA and Health Canada approved recycled pulp – as well as many other grades.

The company has been idled since early December, 2009.

Subject to bankruptcy court approval, the company has secured debtor-in-possession financing and expects to resume production during the first half of March.

It is expected that the assets of MRC will be sold as part of the bankruptcy process to Mississippi Recycling Co. LLC, a newly formed Ohio company, which has secured a financing commitment to acquire and operate the Natchez plant.

The sale is expected to be complete within the next 90 days.

Further, the company notes that subject to completion of the sale, MRC has made pulp sale arrangements that will provide the company with the financial foundation for future viability.