BROWNVILLE, NY, Dec. 18, 2013 (Watertown Daily Times) - Florelle Tissue Corp., temporarily closed since Aug. 26 and unable to make interest-only payments on public loans for the past year, might merge with a larger paper company based in the Northeast to emerge from its financial crisis.
President Harry Minas said the deal to save the Brownville plant from bankruptcy could be approved with the undisclosed company in the next 60 to 90 days. That company would pay off about $630,000 in loans Florelle owes to Chase Bank; in return, it would own a 50 percent stake in Florelle. In May, Chase filed foreclosure action in state Supreme Court.
Mr. Minas said negotiations so far have been positive with the company, which is seeking to expand into Canada where Florelle has clients.
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