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SOUTH CAROLINA
BANKRUPTCY ATTORNEY

Paper mill ownership files for Chapter 7

A prominent paper maker has closed its doors, prompting some industry insiders to declare it the "end of an era" in local paper-making for that state. South Carolina publishers may be familiar with Great Northern Paper, which filed for Chapter 7 on September 22 of this year. The company had been struggling for some time and had already been forced to lay off most of its staff leading up to the filing. 

The company is listed as owing some $50 million in debt to approximately 1,000 creditors across the nation. The value of the company's existing assets is unknown at this juncture. However, the state's Department of Economic and Community Development is working to find investors who would be interested in taking over ownership of the mill, so that location will clearly not be counted toward the company's total assets.

The company laid off some 200 employees, keeping only a skeleton staff to upkeep and maintain the mill, and the local branch of the Steelworker's Union says it will be retaining counsel to ensure that the needs of those employees are met during this tumultuous time. Great Northern Paper had a previously successful business history, but according to business leadership, the rising cost of wood and energy contributed in a negative way to their ability to maintain productivity. The bankruptcy is being overseen in a court local to the mill.

Businesses big and small can struggle with financial woes, as South Carolina business owners are well aware. Thankfully, Chapter 7 bankruptcy offers an alternative to the "mountain of debt" suffered by companies like GNP. Liquidating company assets will no doubt go a long way toward satisfying the company's outstanding debts.

Source: sunjournal.com, "Great Northern Paper files for Chapter 7 bankruptcy", Darren Fishell and Nick Sambides Jr., Sept. 24, 2014

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