Eastern Pulp and Paper filed for bankruptcy protection nearly three years ago.

BANGOR (AP) – Eastern Pulp and Paper Co. received permission Monday from a U.S. Bankruptcy Court judge to borrow from one of its primary lenders.

The $500,000 will cover expenses through Oct. 31 and is an additional installment on loans already secured by the paper company through Congress Financial Corp.

Eastern Pulp and Paper has been operating under Chapter 11 bankruptcy protection for nearly three years. The company operates plants in Brewer and Lincoln and employs 555 unionized workers.

Northborough Capital Corp., one of the company’s creditors, has asked a bankruptcy judge to order the paper company to pay its mortgage on its Amherst, Mass., headquarters. If the judge declines, Northborough asks to move the company out of Chapter 11 bankruptcy protection to Chapter 7, or liquidation.

A hearing on Northborough’s request is set for 11 a.m. Wednesday at U.S. Bankruptcy Court in Portland.

Eastern officials are in discussions with several financial institutions to develop a plan to emerge from Chapter 11 bankruptcy protection, said Douglas Walsh, executive vice president of operations.

The company hopes to file its reorganization plan with the bankruptcy court soon and emerge from bankruptcy in the fall, he said.

Eastern remains in discussions with its union to cut 19 jobs at one of its Lincoln mills.

In mid-June, the company announced 25 lay-offs at its Lincoln plant. At the end of May, 125 people were laid off at the company’s Brewer mill.

Walsh said Monday he does not think any further layoffs would occur in the near future.

He could not confirm whether layoffs would be required under the plan to emerge from bankruptcy.

“We have to leave our options open,” he said.