TUESDAY, MARCH 1, 2011
VOL. 19 NO. 200
BERLIN, N.H.
752-5858
FREE
Buyer of Gorham mill plans major investment in facility BY BARBARA TETREAULT THE BERLIN DAILY SUN
GORHAM – The head of Gorham Paper LLC said his company not only has an agreement to purchase the paper mill at Cascade but also plans to invest millions in the facility. After weeks of rumors, an announcement was released Friday that the newly formed company, owned by a group of private investors from Cate Street Capital, has an agreement with Counsel RB Capital LLC to purchase the mill. John Halle, president of Cate Street Capital said the new owners are looking at a total investment of $60 million, including $25 million for a tissue machine. He hopes to close on the purchase by early April and reopen the mill immediately. The mill has been closed since November with most of its 240 employees laid off. Halle said
he plans to rehire the laid-off papermakers. Based in Portsmouth, Cate Street Capital is a private equity firm that has raised over $6 billion to finance more than 40 projects in the last 15 years. The firm specializes in renewable energy and green technology projects. Halle said his firm was asked by local and state leaders to look at the Gorham mill because of its investment in Laidlaw Berlin BioPower. Halle met first with Gorham mill manager Willis Blevins and liked his business plan for the facility. After meeting with Blevins, Halle said he decided to take a serious look at the plant. Over the next few months, Cate Street Capital conducted extensive due diligence, visiting the mill and hiring paper industry experts to advise them. Both U.S. Senator see INVESTMENT page 5
Prison warden keynote speaker at chamber meeting BY BARBARA TETREAULT THE BERLIN DAILY SUN
SHELBURNE – Speaking at the Androscoggin Valley Chamber of Commerce annual meeting, Warden Dr. Deborah Schult said the question is not “if” the federal prison in Berlin will open, but rather “when” it will open. On the job two weeks, Schult explained the facility is ready to open except it lacks an operating budget. Because Congress has failed to pass a 2011 budget, the government is running on a continuing resolution that funds agencies at the 2010 level. Construction of the Berlin prison was just completed last fall so it had no 2010 operating budget. With Congress increasingly looking at passing another continuing resolution when the present one expires on March 4, Schult said officials are working behind the scene to get language included that provides money to activate the Berlin prison. If that does not happen, she said, the next option is when the 2011 budget is eventually passed. Schult stressed the bureau needs the beds the Berlin prison will provide and there is no chance
it will not open. “It’s not a matter of if we’re going to activate but when we’re going to activate,” she told the crowd. “We’re ready to go,” she said. The federal prison in Berlin cost $ 2 4 5 million to construct a n d w h e n f u l l y a c t i vated, will hold 1 , 7 0 0 inmates. T h e prison w i l l Dr. Deborah Schutt employ 332 people with 60 percent new hirees. Right now, Schult there are 16 staff members on board, three are New Hampshire natives. Schult described her background as a psychologist who enjoys finding out “what makes people tick”. She started in the Bureau of Prisons in 1995 as a psychologist and has worked with all kinds of inmates including see WARDEN page 13
Berlin Mayor Paul Grenier chatted with Cate Street Capital President John Halle at Friday’s Androscoggin Valley Chamber of Commerce annual meeting. (BARBARA TETREAULT PHOTO) .
Company has purchase agreement for Gorham mill BY CRAIG LYONS THE BERLIN DAILY SUN
GORHAM — The former Fraser mill could soon reopen after a company Friday announced it plans to complete the sale in April and immediately start operating. Gorham Paper, LLC, a new company formed by private investors from Cate Street Capital, issued a press release stating it has reached an agreement with Counsel R.B. Capital to buy the mill. The press release adds that closing is set for early April, and Gorham Paper would then re-hire the work force and resume operations. “I’m extremely gratified and grateful that so many good hard working people, who I have had the pleasure of representing over the years, will have an opportunity to go back to work doing the thing they love the most,” said Eddy DeBlois, executive board member of United Steelworkers Local 75, in the press release. Gorham Paper’s press release states the company has identified and structured a plan to not only start the mill back up but also ensure long-term success and future growth. “This mill is a gem and a tremendous asset for the community and the state,” said Willis Blevins, former general manager of the Gorham mill, in the press release. “I’m extremely pleased that it
Home, Garden, Gifts & So Much 171 Main More... On The Street, Second Floor! Berlin BE LOCAL 752-7362 BUY LOCAL
H&R BLOCK® NEVER SETTLE FOR LESS
410 Glen Avenue, Berlin 752-2372 Main Street, Colebrook 237-8566
will not be allowed to disappear.” Local leaders were equally enthused upon hearing the news. “It’s very exciting,” said Gorham Selectman Paul Robitaille. “This is a good step in the right direction.” Robitaille said the mill sale is the beginning or rebuilding the economy and the population in the area. “This is the best news we possibly could have hoped for,” said Gorham Town Manager Robin Frost. Frost said she’s met with the new owners and believes they are a forward thinking group with good ideas for the mill and possibly creating new businesses on the site as well. Gorham Paper is different from the other prospective buyers, said Frost, because it is coming in with a plan for the future. She added the company plans to invest in the mill and make it a sustainable operation. Frost said that Gorham Paper will get people back to work, and hopes to eventually create new jobs down the road. “It’s extremely exciting to revive the industry we all know and love,” said Berlin Mayor Paul Grenier. Grenier said he applauds the group that’s willing to invest in the mill and in the area. see AGREEMENT page 13
BANKRUPTCY or CRIMINAL DEFENSE Free InitialM eeting
Sm a ll& L yo n s A tto r n eys 1-800-373-1114 (a debtrelief agency )