Governor LePage Announces Purchase Agreement for Katahdin Region Mills
August 30, 2011
For Immediate Release: Tuesday, August 30, 2011
Contact: Adrienne Bennett (207) 287-2531
Augusta, Maine – Governor Paul LePage announced Tuesday the State of Maine and Brookfield Asset Management has reached an agreement with a company that intends to purchase the Katahdin region mill properties. Cate Street Capital today signed an asset purchase agreement for the Millinocket and East Millinocket mills.
“This is a significant milestone in our efforts to not only restore papermaking in the Katahdin region, but to create job opportunities for Mainers,” said Governor LePage. “I want to commend the hard work and commitment of Brookfield and Cate Street. We look forward to continuing to work toward a closing.”
In recent months, senior staff from the Governor’s Office and the Commissioner of the Maine Department of Economic and Community Development met with several potential buyers before finalizing the signed purchase agreement with Cate Street Capitol on August, 30th.
“Cate Street has shown they are committed to reaching a final agreement with Brookfield and I commend both parties for getting to this point. This is a significant step moving forward,” George Gervais, Commissioner of the Maine Department of Economic and Community Development, said. “While this is great news for the Katahdin region, we want to stress there is more work to do,” added Gervais.
Cate Steet Capital is a national leader in developing green energy companies headquartered in Portsmouth, New Hampshire. The company focuses on finding and supporting green technologies and environmentally sustainable projects for a better world.
Richard Cyr, Cate Street Capital Sr. Vice President, said, “We will work diligently to resolve all outstanding issues over the next few weeks so this project may proceed. There are several parties to this agreement, and numerous conditions which must be met before the deal can be closed.”
"Today's announcement would not be possible without the tireless efforts of the Governor to help find a successor operator for the mills," said Richard Legault, Senior Managing Partner of Brookfield Asset Management. "While there is still work to be done, the Governor's ability to broker this transaction against the backdrop of current market conditions demonstrates his commitment to jobs and economic development in the State."
In April, Meriturn Partners halted negotiations backing away as a potential buyer which forced Brookfield Asset Management, the Toronto-based corporation that owns the two Katahdin region paper mills to close the Millinocket mill. The shutdown resulted in the lay-off of nearly five-hundred workers. On April 29, Brookfield granted an extension to Governor LePage who remained optimistic a buyer would be located.