Carthage Paper Mill Firms Up Finances; Optimism On SalePosted: Updated:
Carthage Specialty Paperboard - in bankruptcy since late February - firmed up its finances Friday.
At a federal court hearing in Syracuse, agreements were reached to allow the current management to continue to run the company while a buyer is sought; to allow the company to borrow money as it operates; and to pay certain key suppliers of raw materials some of the money they were owed before bankruptcy..
Stephen Donato, lawyer for Carthage Specialty Paperboard, said the company has at least three interested buyers, and he is "cautiously optimistic" of a sale. Donato declined to identify the potential buyers or say whether the current management team is still one of the interested parties, though the management team is known to be seeking financing to purchase the mill.
During Friday's hearing in federal bankruptcy court, the mill's vice-president of finance, Don Schnackel, testified about efforts to keep the mill running. "What's critical to us," Schnackel said, "is the 80 jobs." THe mill employs just under 80 people.
Carthage Specialty Paperboard is the last of the paper mills that used to to line the Black River from Great Bend to Carthage, employing hundreds of people in the area.