RUMFORD — NewPage Corp. announced in a press release Wednesday that the company has filed for Chapter 11 under the United States bankruptcy Code.
"We strongly believe that the court-supervised restructuring we began today is the most effective means of strengthening our financial position and enhancing our standing as the leading producer of printing and specialty paper in North America" George F. Martin, president and chief executive officer for NewPage, said in a prepared statement.
In the documents supporting the filing NewPage lists the top 30 "unsecured creditors" the company owes money to. Including in those is the Bangor-based trucking company, Hartt Transportation.
According to the filing NewPage owes Hartt $1.7 million. Also on the list is Rumford Falls Hydro, owned by the Massachussetts-based Brookfield Renewable Power. According to the filing NewPage owes the power company $2.7 million.
NewPage Port Hawkesburry Corp., a Canadian subsidiary for NewPage, has started proceedings before the Supreme Court of Nova Scotia under the Companies' Creditors Arrangement Act of Canada. The company has executed a Settlement and Transition Agreement and are waiting approval by the Canadian Court.
The Canadian company also announced on Aug. 22, it would take downtime at NewPage Port Hawkesbury Corp. due to economic conditions. The corporation is hoping to preserve its value while it continues discussion with potential buyers, the release stated.
NewPage is North America's largest manufacturer of coated paper and employs aobut 750 people at its Rumford mill. The company also pays 46 percent of the town of Rumford's property taxes.
NewPage has also filed a series of customary motions in the United States Bankruptcy Court that would allow it to continue its U.S. employee wages and benefits program. This motion will have to be court approved and is typical in Chapter 11 proceedings.
NewPage owns paper mills in Kentucky, Maine, Maryland, Michigan, Minnesota, Wisconsin and Nova Scotia, Canada.
More information on this developing story will be posted here as it becomes available.
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