Court Approves Flambeau River Papers, CellMark Agreement
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In court on Monday, July 1, Price County Judge
Kevin Klein approved an agreement between Flambeau River Papers and CellMark
Paper Inc., as well as a request for the mill to pursue financing in the amount
of $2 million. This court action will allow the mill to reopen within the next
two weeks, returning 89 employees to work, and pay the wages of the 68
employees laid off by the mill on June 7.
According to the court-appointed trustee of
Flambeau River Papers, Rebecca DeMarb, CellMark Papers accounts for 80% of the
mill’s total revenue. When CellMark ceased payments on June 5, the mill was no
longer able to make payroll and the vast majority of its employees were laid
off, leaving only 26 individuals employed by the mill.
The agreement approved by the court on Monday
allows CellMark to keep the $1 million it suspended in June, but requires
CellMark to continue purchasing paper from the mill for 60 days, and make
efforts to continue doing so after the 60 days elapse. It also requires
CellMark to make efforts to continue purchasing wetlap.
