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BANGOR (AP) – The former owner of Great Northern Paper Inc. and his son’s consulting firm are seeking more than $130,000 to cover services and expenses while the company was in bankruptcy.

Lambert Bedard and his son Martin’s consulting firm, Bilodard Inc. of Quebec, filed separate invoices in U.S. Bankruptcy Court for expenses incurred starting Jan. 9, the date Great Northern was placed under Chapter 11 bankruptcy protection.

The company halted operations at its Millinocket and East Millinocket mills in December, displacing more than 1,130 workers.

The mills were sold on April 29 to Brascan Corp. of Toronto. The East Millinocket operation was restarted earlier this month and about 400 people have returned to work.

In mid-May, Great Northern’s bankruptcy status was changed to Chapter 7, or liquidation of remaining assets not sold to Brascan.

Expenses listed on Bedard’s invoice include office, travel, hotels, meals and cars, totaling $37,776 for the 20 business days between Jan. 9 and Feb. 5.

On Feb. 5, a U.S. Bankruptcy Court judge approved a new management team to operate and sell Great Northern. Jim Giffune, Warren Richardson and Thomas Griffin, all former Great Northern executives, agreed they would not be paid any wages during those three months.

Bilodard has filed invoices totaling $38,547 for “management and consultant services” between Jan. 9 and May 23. The company also wants to be paid $54,000 to cover an early termination fee incorporated into a service contract it had with Great Northern.

If the bankruptcy court approves the invoices, they likely would be paid from any remaining proceeds of the sale of the mills. Brascan’s deal was worth $103 million, but only about $60 million was actual cash. That money has been paid to secured creditors. Attorneys maintain that little if any money would be available to pay unsecured creditors.

The payments sought by Bedard and Bilodeau are classified as administrative expenses or fees similar to those incurred by lawyers or consultants.

“It’s a legitimate request,” said Portland attorney Nicholas Walsh, who represents Bilodard and Inexcon Inc., a Quebec-based company partially owned by Bedard.

A hearing on the request is scheduled for July 9 at U.S. Bankruptcy Court in Bangor.

AP-ES-06-25-03 1125EDT


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