Lincoln Mill Bankruptcy Auction

by San Antonio Attorney

Approximately four entities have identified themselves as possible buyers for the Lincoln Paper and Tissue mill that was sold via a bankruptcy auction.  The auction was slated on Nov.  19.

Sam Anderson, the company attorney, did a review for all the bids that were due to his office on Nov.  17.

Although Lincoln Paper and Tissue mill’s legal representative would not disclose the origin and identity of the bidders, he briefly came to the conclusion that it seems that none bear interest in becoming the mill’s next operator.

Anderson added that the declared intention of the bidders was to purchase the assets and make the most out of the remaining resources.  This process would also include scrapping the company altogether.  The potential bidders also express that they would probably find a different operator.

The auction was scheduled at ten in the morning on Thursday at the Anderson’s law offices located in Portland.

The bidding initially began at $5.3 million for the mill assets.  This was led by a ‘stalking horse bidder.’

The starting bidder is the company named LP Acquisitions, which is a subsidiary of Reich Brothers, a Los Angeles-based investor.

Boston-based liquidator Gordon Brothers Group eventually won the auction.  The sale is likely to close by December, according to Anderson.

The mill runs a roster of 179 employees and filed for Chapter 11 protection last September.

Fortunately, the mill continued its operations during the Chapter 11 bankruptcy reorganization.

The mill requested stalking horse bids from 169 companies that could have the possibility to purchase.

There are also 36 entities who signed nondisclosure agreements in order to review confidential information about the mill’s operations.

Bidders will have the benefit of choosing the option of buying the land on which the mill is built.

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