Gordon Brothers Purchase Assets Formerly Owned by Lincoln P&T

 

Gordon Brothers Group, Boston, Mass., USA, a global advisory, restructuring and investment firm, announced it has purchased the assets of Lincoln Paper and Tissue (Lincoln, Me.) as part of a joint venture that includes Capital Recovery Group, PPL Group, and Rabin Worldwide. Lincoln Paper and Tissue (LP&T) filed for bankruptcy in late September 2015. Gordon Brothers maximizes value for both healthy and distressed companies by purchasing or selling all categories of assets, mitigating leases, appraising assets, and operating businesses for extended periods

"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.

LP&T failed to recover from challenges in the market and in the business itself. A turning point for LP&T was a 2013 boiler explosion that led to the loss of a significant customer. This and other factors such as a trend toward foreign production purchasing eventually led to the bankruptcy filing in September.

 

LP&T was a leading U.S. manufacturer of high quality tissue products. The company was the largest producer of deep-dyed tissue in the U.S. LP&T products are used by many of the nation's party goods producers, airlines, and food service companies to create napkins, towels, table covers, and other specialty tissue products