BANGOR (AP) – Gov. John Baldacci’s legal counsel confirmed that Bangor native Donald McCann is one of at least two entrepreneurs to submit a bid for two Maine mills owned by bankrupt Eastern Pulp and Paper Corp.

Kurt Adams would not identify the other individual to submit a sheet of proposed terms for a deal.

But Adams said Montreal-based Cascades Inc., which produces packaging, tissues and fine papers similar to the Lincoln mill’s line, is seriously considering the mills but has not submitted a term sheet.

Bangor attorney Gary Growe, the mills’ trustee, would neither identify the individuals who submitted term sheets nor disclose the contents. But he was positive about the development.

“I’m optimistic that by the middle of next week, I’ll have an offer,” Growe said. “I’m far more optimistic than I was on Monday.”

The Bangor Daily News quoted an anonymous source close to negotiations as naming four other groups that may be interested in buying the mills in Lincoln and Brewer, which are in Chapter 7 bankruptcy.

Those groups include investment firm Meriturn Partners, which recently purchased Curtis Specialty Papers in Port Huron, Mich., Erving Paper Mills Inc. of Erving, Mass., Cellu Tissue Holdings Inc. of East Hartford, Conn., and British investment broker Tom Reid, who is tied to Tiar Group, a California consulting firm, the newspaper said.

Donald McCann, who left Bangor in 1979, now owns DCM Acquisition Co., a Memphis, Tenn., a business acquisition company.

His proposal calls for buying both mills and restarting the Lincoln Pulp and Paper Co. mill in Lincoln. But he has not determined what he will do with Eastern Fine in Brewer, the newspaper said.

Growe can pay expenses at the mills through Feb. 18 but has filed a notice in bankruptcy court to abandon the real estate, machinery and inventory at both mills if he receives no bona fide offers.

State Economic and Community Development Commissioner Jack Cashman said he is continuing to meet with interested buyers.

“I think we’re in pretty good shape and making progress on all fronts,” Cashman said.

Growe will review the term sheets submitted and present the best to other bidders. If they decide to top that bid, an auction will take place in bankruptcy court.

AP-ES-02-13-04 1126EST