A Los Angeles investment firm placed a winning $5.4 million for the shuttered Great Northern Paper mill in East Millinocket, Maine, at a Bangor auction.
The Portland Press Herald reports a trustee for Great Northern Paper accepted the bid from Hackman Capital Acquisition on Tuesday. A federal bankruptcy judge must still approve the sale.
Proceeds from the sale will be split between two bankrupt entities that make up Great Northern Paper. The paper machines went idle in January, and later, the mill laid off more than 200 employees. The company filed for Chapter 7 bankruptcy protection on Sept. 22. Cate Street Capital of New Hampshire had been managing the mill.
The mill once produced paper for newspapers and books.