Natchez, Mississippi, USA, 20 February 2010 — Citing continued economic downturns in the pulp and paper industry, pulp recycler Mississippi River Corporation (MRC) filed for Chapter 11 bankruptcy this week in the U.S. Bankruptcy Court, Southern District of Ohio, according to The Natchez Democrat.
“As painful as it is to go through this process, the company will emerge stronger and healthier,” said George Matthews, MRC vice president. “Obviously, we don’t like the fact that some people have been hurt, but we’ll do everything we can to treat people properly in the future."
Matthews said the plant has struggled with low demand and low prices in the last year. “We ran some production in December and some in January, but we have not run any in February,” he said. MRC has recently signed a multiyear agreement with a “major customer” that might signal improved business and subsequent cash flow, Mtthews said.“The volumes are such that we would be running on a regular basis,” he said. “It will put us on stronger ground.” He said the new agreement should revive production at the Adams County plant soon.
Matthews said the company has seen some recent improvement in the marketplace. “Certainly the market has gotten tighter and pricing has improved considerably,” he said. “The intention would be to get back to regular run time soon. Down the road, in the not too distant future, we hope to be running three shifts, and seven days a week.”
Matthews said despite the bankruptcy, MRC is still committed to the area. MRC has operated a pulp recycling plant in Adams County since 1991 and currently employs approximately 60 people.