USG debtor requests court OK to fund unit's $18 million paper mill purchase

By Caroline Salls

Pittsburgh, March 14 - USG Corp. debtor United States Gypsum Co. requested court approval to fund subsidiary Otsego Paper, Inc.'s $18 million purchase of an Otsego, Mich., paper mill from Menasha Packing Co., LLC, according to a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.

The paper mill was shut down in the third quarter of 2005 because it no longer fit Menasha's operational needs, and it currently is not operating.

Under the terms of the acquisition agreement, U.S. Gypsum, through the Otsego mill, will be able to upgrade the paper mill's production capabilities to fit U.S. Gypsum's paper production needs.

A hearing is scheduled for April 17.

USG, a Chicago-based building materials company, filed for bankruptcy June 25, 2001. Its Chapter 11 case number is 01-02094.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.