LINCOLN – Lincoln Paper and Tissue files for bankruptcy – leaving nearly 180 jobs in limbo.
Co-owner Keith Van Scotter says the decision was based on a number of factors.
“We decided in the best interest of the business, the customers, the employees, we felt we had to do this.” Keith Van Scotter, Co-owner Lincoln paper and Tissue
Van Scotter says he expects the mill assets to be auctioned in 45 days with a sale complete in 60. The company has negotiated “debtor in possession financing” with a Connecticut lending company. That will allow normal business operations to continue during the process.
Last month the company announced it was shutting down one of its three tissue making machines and laying off 25 workers. Van Scotter says he is not sure whether a potential buyer would continue to operate the mill, but is hoping for the best.
Lincoln Paper and Tissue produces specialty tissue rolls for party goods, food service and more.