Amzak to Buy Renew Paper Mill Near St. Francisville, Louisiana
Baton Rouge, Louisiana, USA, 12 April 2010 – A Florida company has agreed to pay USD 9.9 million to take over the closed Renew Paper mill near St. Francisville, Louisiana, according to news reports from The Advocate of Baton Rouge, The Natchez Democrat, and the Associated Press.
U.S. Bankruptcy Judge Douglas Dodd, who ordered a court-supervised auction, said he would enter a sale order Monday, clearing the way for Amzak Capital Management LLC to take control of the mill and 610 acres of property within two weeks. Amzak would be eligible to reopen the site after the sale, but the firm wouldn’t pinpoint a time frame, saying in court documents it will rehire 150 to 200 people and keep current management in place. Allen Byrd, chief executive officer for the mill ownership, said the mill could reopen within a matter of weeksrather than months. A reasonable restart could be accomplished within 30 days following a sale and authorization from the new owner, he said. “Nothing has really been dismantled or mothballed,” Byrd said. “It’s a matter of getting the people back and doing some identified projects.”Despite the bankruptcy reorganization, state officials are eager to bring the paper mill back into operation. “Paper mills have a massive economic impact,” said state economic development Secretary Stephen Moret, citing a Louisiana State University economic analysis showing that for 200 jobs created at Renew Paper, another 800 jobs would be created in the regional economy. Amzak financed West Feliciana Acquisition's USD 16 million purchase of the mill in 2009. In 2001, Tembec Inc. of Canada paid USD 185 million for the same site, plus additional acreage. But by 2006, Tembec had lost USD 200 million on the operation and closed it a year later.
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