Gorham Paper & Tissue has filed for Chapter 11 reorganization at the U.S. Bankruptcy Court in Delaware. It has also agreed to sell the mill assets to an investment group interested in operating the facility. Gorham Paper said it entered into an asset purchase agreement with Behrens Investment Group on November 4.
According to a story in the Conway Daily Sun, the deal, which the parties expect to close during the bankruptcy proceedings, would see the New York investment company acquire most of Gorham Paper & Tissue and its subsidiary, White Mountain Tissue, for $8.75 million in cash and the assumption of several million dollars in liabilities. Read the full story.