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Amzak to Acquire Renew Paper, Could Restart Mill Soon
April 15, 2010 Box Biz
The Renew Paper lightweight linerboard mill near St. Francisville, La., shut down since February, could reopen as soon as within a few weeks, according to Allen Byrd, ceo for the current mill ownership, The Advocate reports.
Boca Raton, Fla.-based Amzak Capital Management LLC won bidding April 9 for the 610-acre site with a $9.9 million offer at a bankruptcy court auction. U.S. Bankruptcy Court Judge Douglas Dodd says he planned to enter a court order allowing the sale the week of April 12, with a sale possible within two weeks.
After the sale, Amzak would be eligible to reopen the site, but the firm would not give a time frame. However, it says in court documents it will rehire 150 to 200 people and keep current management in place.]
Byrd says outside court that he thinks the time-line for a possible mill reopening is “a matter of weeks, not months.” Byrd is CEO of West Feliciana Acquisition LLC, current owner of Renew Paper, which produced lightweight linerboard and kraft paper.
Nothing at the St. Francisville facility has been dismantled or mothballed, Byrd says. The mill could reasonably be restarted within 30 days following a sale and authorization from the new owner. The restart hinges on rehiring workers and completing some identified projects, Byrd says.
Louisiana state officials are eager to see the paper mill restart despite the bankruptcy reorganization. Amzak helped finance the failed venture to restart the mill by PanAmerican Capital, of New York.
West Feliciana Acquisition, a subsidiary of PanAmerican, purchased the mill in 2009 for $16 million with financing from Amzak, reported Associated Press (AP) on April 12. Among companies that had showed interest in the mill were SP Newsprint Co., Corrugated Services Inc., and Cargill Inc., testified Allen Byrd, ceo for the mill ownership.
