[quote]The state of Maine bought the mill from Georgia Pacific and Red Shield bought it from the state.[/quote]
Just how much does the State (taxpayers) have to invest to ensure that 1000 jobs (which have yet to materialize) remain "available"?
[quote]"Despite this temporary setback, we are committed to a speedy reorganization to the benefit of our employees, suppliers and customers," Ed Paslawski, the companies' chief executive officer, said in a statement.
I wonder how much of his personal money "Mr. Ed" has invested in this?
[quote="FXSTC"]What happens to the grant money? Does it all go to UMaine?[/quote]
Typically, grant money is handed out over time as certain mileposts are met by the grantee. I don't know how much they got to start with, but I would hope that most of what they were pledged is still in the grantor's control. As for UMaine, one would assume this project required the Red Shield facility to succeed, and without it there is no project. All conjecture on my part.
Red Shield has served it purpose: it held the Governor get re-elected.
Maine's only container cargo facility idled
Article Date: Thursday, July 17, 2008
PORTLAND, Maine (AP) _ The future looks uncertain for the city of Portland's International Marine Terminal and its container-handling operation.
New Jersey-based Columbia Coastal Transport stopped barge service out of Portland on June 29 after the loss of a key customer, Red Shield Environmental LLC, an Old Town pulp and energy company.
Red Shield filed for Chapter 11 bankruptcy and is trying to reorganize its finances and resume operations.
Shipper suspends container service
The loss of barge shipping forces the International Marine Terminal to shut down its cargo-handling operation.
By BETH QUIMBY, Staff Writer
July 17, 2008
Red Shield used the Columbia Coastal barge to ship 10,000 metric tons of wood pulp each month. The pulp was carried by rail to Sprague Energy, packed into containers at a Sprague facility in Portland and shipped out of the marine terminal by barge to the Port of New York/New Jersey.
Kevin Mack, Columbia Coastal spokesman, said that without Red Shield, the biweekly barge service was no longer viable.
When will DECD announce that they will develop the facility for use as a warming shelter for the winter?
$13.6 million loan to buoy Red Shield
Tuesday, July 29, 2008 - Bangor Daily News
OLD TOWN, Maine - An investment company agreed to loan Red Shield Environmental and RSE Pulp & Chemical $13.6 million to repay the companies' existing debt and fund the restart of the mill...
Red Shield and RSE filed Chapter 11 last month and laid off about 160 employees.
A hearing on the financing agreement proposed by Woodside Capital Partners of Massachusetts is scheduled for Wednesday, Aug. 20.
No one from Woodside could be reached Monday evening for comment.
7/29/08 - BDN
Red Shield Environmental gets OK to idle its engines
BANGOR, Maine - Red Shield Environmental in Old Town received permission Tuesday to continue operating in idle mode in anticipation of the mill' s potential startup next month.
U.S. Bankruptcy Judge Louis H. Kornreich approved a motion that will allow the company access to $300,000 cash collateral from a Pine Tree Zone rebate to continue to keep the facility warm so startup can occur quickly if a pending $13.6 million financing agreement is approved next month.
Invest $13.6 million, make some token progress and get a $30 million grant, then sell off the equipment and buildings? Looks like a good deal.
Loan approved to keep Red Shield on standby
OLD TOWN, Maine â€” A loan was approved Thursday to allow Red Shield Environmental to continue to operate in idle mode pending next monthâ€™s bankruptcy hearing to determine the fate of the facility.
Company officials blamed recent spikes in material and fuel costs for the financial troubles but are hopeful Red Shield can reopen and continue with the plan to build an ethanol production pilot plant in conjunction with the University of Maine.
Red Shield hearing delayed in $13.6 million aid request
By Jessica Bloch
OLD TOWN, Maine â€” A hearing on Red Shield Environmental LLCâ€™s request for $13.6 million in funding has been postponed to Sept. 15.
Red Shield Environmental LLC and its subsidiary RSE Pulp and Paper, needed the delay because the companies want more time to work with the Finance Authority of Maine and its state loan program.
If everything goes through, employees could be back to work by the end of the month...
Red Shield bankruptcy hearing postponed again
By Jessica Bloch
OLD TOWN, Maine â€” A bankruptcy hearing for Red Shield Environmental LLC has been postponed for a third time.
The hearing will determine whether Red Shield/RSE Pulp & Chemical LLC will be approved for $13.6 million in funding to restart the Old Town facility...
Red Shield CEO Ed Paslawski said the company needs another week to complete the deal with the FAME.
[url=http://news.mainetoday.com/updates/033177.html]Red Shield LLC to be put up for auction[/url]
[quote]OLD TOWN -- Red Shield Environmental LLC is going up for auction at the end of October with a starting bid of $11.5 million.
The company's lawyer, Robert Keach, says he's withdrawing a request for approval of a $13.6 million loan to restart operations. The bankruptcy court hearing for that loan has been postponed three times.[/quote]
I will go on record as saying that this whole idea is now a bust, despite the belief I had that they would succeed.
The whole effort did succeed in helping to get Baldacci re-elected. That was always the maine point.
Re-reading the first page of this thread is pretty interesting.
I give Bob credit for admitting that he was mistaken, though he could also write "Dan was right." :D
If Baldacci would just call off his attack dogs at the DEP and let the boiler run as designed that mill could make money and it would go for a good price at auction.
How many more jobs is Maine going to lose before we change directions?
How long can we afford to wait?
Doug, I think we are past the tipping point. Maine is a great place for a second home, not a job.
If we elect the correct legislature in November we can cut the budget, grow jobs, eliminate Commissar Gendron's attack on rural Maine schools and maybe even bring back freight rail to Washington County.
[quote]A federal bankruptcy judge has approved the sale of the idle Old Town pulp and paper mill to a New York investment group for nearly $19 million.
Gov. John Baldacci says the sale to Patriarch Partners is expected to close Monday.
Patriarch plans to reopen the mill.......[/quote]
I sure hope they got a guarantee from Augusta that they can run the boiler at its design capacity. Without that no owner will make money on the place.
So $30 million in grants was sunk into the place and it's sold for $19 million. Chances are that unsecured creditors liike local vendors will get screwed.
Other companies have managed to ride out the high energy cost storm. Why couldn't they? There must be more behind this story than the headlines tell us. :?
[url=http://www.maine.gov/tools/whatsnew/index.php?topic=Portal+News&id=63135... Baldacciâ€™s Statement on Sale of Red Shield[/url]
Governor Baldacciâ€™s Statement on Sale of Red Shield
October 23, 2008
AUGUSTA â€“ Governor John E. Baldacci released the following statement today concerning the sale of Red Shield Environmental LLC in Old Town to Patriarch Partners. The sale is expected to be finalized on Oct. 27.
â€œThis is good news for workers and good news for the community,â€ Governor Baldacci said. â€œI have spoken with Patriarch CEO Lynn Tilton, and I am impressed with her vision for the facility and her commitment to get people back to work.â€
Governor Baldacci said he will meet with Tilton when she visits Maine during the next few weeks.
â€œThe Old Town facility has great potential both as a producer of alternative energy and as a pulp mill,â€ Governor Baldacci said. â€œThe work that has taken place in cooperation with the University of Maine is ground-breaking and offers the potential to ease our reliance on foreign oil and invigorate our forest products industry. Iâ€™m confident that work will continue.â€
â€œThe workers at the Old Town mill have been through a lot,â€ Governor Baldacci said. â€œThey deserve this good news.â€
OLD TOWN, Maine â€” Although the sale of the bankrupt Red Shield mill should become final next week, it will take â€œseveral monthsâ€ before the dust from the sale â€” and the companyâ€™s debts â€” settles, according to its attorney.
â€œLiterally, youâ€™d have to go through the claims one by one,â€ Red Shield attorney Bob Keach of Portland said Friday. â€œThereâ€™s not going to be enough cash to pay unsecured claims 100 cents on the dollar.â€
[url=http://www.bangornews.com/detail/91873.html]Bangor Daily News[/url]
Have we come full circle? Once again, less than two weeks before Election Day, a Democrat (Baldacci) announces a new buyer, hoped-for jobs at the mill.
[quote="Mike Lange"]Other companies have managed to ride out the high energy cost storm. Why couldn't they? [/quote]
They did not have a viable business model to begin with, IMO.
Former employees called back to work at Maine mill
November 5, 2008
OLD TOWN, Maine --About 160 former employees of an idle pulp and paper mill in Old Town will soon be going back to work now that the court-approved sale of the facility has been made official.
About 400 workers lost their jobs when Georgia-Pacific Corp. shut down the paper mill in 2006. Red Shield Environmental then acquired the mill and resumed pulp production, but laid off 160 workers and filed Chapter 11 bankruptcy in June...
Maine a dumping ground for others' waste
Greg Rossel Kennebec Journal & Morning Sentinel 11/16/2008
Maine actively promoted importation of out-of-state municipal solid waste/construction/demolition debris from across the state border -- burning it in its trash-to-energy plants or converting it into "cheap" fuel for biomass boilers.
Perhaps the most egregious example is the deal [Maine] brokered with Casella Waste Management and Red Shield. Initially, [Maine] used legal prestidigitation to make the illegal waste legal by sorting it on this side of the border -- turning it into a Maine "product."
Cash from pulp's woody biomass
Published Monday November 24th, 2008
Technology Researcher hopes pulp mill owners can turn byproducts in profits
Hemant Pendse knows how pulp mill owners can make cash from compounds found in wood without disrupting the pulping process.
His research has been used to retrofit the Old Town pulp/paper mill in Maine and will be used at a biorefinery to be built next year adjacent to the mill.
Pendse has formed a partnership with Red Shield Environmental LLC, an investment group focused on the refinancing and start up of the Maine mill.
Red Shield plans layoffs
Pulp market crash blamed for Old Town millâ€™s problems
By Abigail Curtis/BDN Staff
OLD TOWN, Maine â€” Many recently rehired workers at Red Shield received news they will be laid off again, at least temporarily.
About 110 employees were working there this week to operate the biomass boiler, winterize the mill...
â€œNext week we will be dropping...to about 75 and in coming weeks itâ€™ll be closer to 50,â€ said Dan Bird, human resources manager.
Bird said he was...rehiring all 180 laid-off workers... Then the pulp market crashed.
Terminal resumes barge service
A New Jersey company suspended barge service in June after a key client went out of business.
From staff reports March 30, 2009
PORTLAND â€” Regular container cargo service has resumed at the International Marine Terminal.
Columbia Coastal Transport of Liberty Corner, N.J., had suspended its barge service in June after a key client, Red Shield Environmental LLC, went out of business. A New York-based investment group has since taken over the operation, which is now called Old Town Fuel and Fiber.