Gordon Brothers Group, a global advisory, restructuring and investment firm specializing in the industrial, consumer products and retail sectors, announced that it has purchased the assets of Lincoln Paper and Tissue as part of a joint venture that includes Capital Recovery Group, PPL Group and Rabin Worldwide. The Maine-based tissue and paper mill filed for bankruptcy in late September 2015.
"Our purchase of this mill provides a significant opportunity for a strategic operator to restart the mill. In the event an operator does not materialize, we will provide buyers with the chance to purchase some highly desirable, late model paper and tissue equipment," stated Bob Maroney, President of the Commercial & Industrial Division of Gordon Brothers Group. "We are investing capital to maintain a warm idle and would like nothing more than to have an operator restart the plant and create jobs," said Bill Firestone President of CRG.
Lincoln Paper and Tissue's bankruptcy filing resulted from a series of challenges as the company sought to improve its business following a boiler explosion in 2013 and the subsequent loss of a major customer. The company faced headwinds due to trends towards foreign manufacturing of similar products and earlier this fall made the strategic decision to file for bankruptcy.