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Gorham Paper and Tissue, White Mountain Tissue sale final

by Tara Giles
Sports reporter - Coos County Democrat and Berlin Reporter
January 06, 2021
GORHAM — In a statement, released on Nov. 5, Gorham Paper and Tissue, LLC and White Mountain Tissue, LLC revealed that they have entered into an asset purchase agreement with an affiliate of Behrens Investment Group to acquire substantially all of the companies' assets for $8.75 million in cash, in addition to the assumption of several million dollars in estimated liabilities, including the assumption of certain of the Companies' tax, environmental liabilities and employee obligations, and specific bank debt. The Companies and Behrens intend to close the sale transaction as part of the Chapter 11 filings of the Companies.

The statement went on to read, "Under Section 363 of the U.S. Bankruptcy Code, Behrens will serve as the stalking horse bidder in the proposed auction in the Bankruptcy Court for the District of Delaware (the "Bankruptcy Court"). Behrens agreed to provide, subject to Bankruptcy Court authorization, partially subordinated debtor-in-possession financing, referred to as 'DIP Financing,' that will provide a secured term loan credit facility to fund the Companies' working capital needs throughout its Chapter 11 cases."

The Bank of New Hampshire, one of the company's lenders and the Business Finance Authority of the State of New Hampshire, issued the following statement: "We commend Behrens for its interest in the Gorham mill. We are optimistic that [Behrens'] efforts will have a positive impact on the State of New Hampshire, employees and the local community. Dick Arnold, Chief Executive Officer of the Companies, described the efforts by Behrens as 'comprehensive' and as 'very collaborative.' Further, the material, existing secured parties, which include affiliates of, and/or funds managed or owned by Lynn Tilton, Patriarch Partners, LLC, and the Zohar Funds, support the acquisition, the terms of the APA, and the DIP Financing provided to the Companies by Behrens. Last week, the sale was approved in the U.S. Bankruptcy Court and the closing took place on Friday."

Mayor Paul Grenier has a good feeling regarding the new owners.

"This company will be a great asset to the area. I had a pretty good meeting with them and even though they don't have to, they have agreed to pay back taxes, upwards of $280,000, all government agencies will be paid," he said.

Grenier added, "They want to be good neighbors."

Martin Lord Osman
Town of Brookfield
Town of Brookfield
Varney Smith
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