FERC, Lincoln Paper and Tissue estate settle $5 million lawsuit over unsecured claims

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FERC, Lincoln Paper and Tissue estate settle $5 million lawsuit over unsecured claims

August 09, 2016 - 13:51
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BANGOR, ME, Aug. 9, 2016 (Bangor Daily News) -A federal agency has settled its $5 million civil lawsuit against Lincoln Paper and Tissue LLC by agreeing to seek restitution for a lesser amount when claims filed by unsecured creditors against the bankrupt mill’s estate are processed, officials said Monday.

The Federal Energy Regulatory Commission agreed as part of the deal to place its claim for $379,016 in profits that FERC claims Lincoln Paper and Tissue illegally received in 2008 among other unsecured claims that came after the mill’s bankruptcy in 2015, according to a 12-page filing released by the U.S. Bankruptcy Court in Bangor on Monday.

Those unsecured claims, which at one point totaled $9.1 million, are still being negotiated by the estate as part of a liquidation plan, Lincoln Paper and Tissue LLC attorney D. Sam Anderson said. The plan will take several months to negotiate, he said.

Bangor Daily News - FERC, Lincoln Paper and Tissue estate settle $5 million lawsuit over

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