A federal judge has accepted a compromise between bankrupt Great Northern Paper and its creditors that sets aside a portion of the expected receipts from the sale of the East Millinocket, Maine-based mill for dozens of unsecured creditors, the Portland Press Herald reported on Saturday. In a ruling filed on Friday at U.S. District Court, Judge Louis H. Kornreich approved a proposal to remove liens from Great Northern Paper’s assets so a sale of the defunct paper mill can go ahead. A “carve out” from the proceeds of the sale will provide funds to the company’s unsecured creditors, including many businesses in the Katahdin region that were never paid for goods and services. Collectively, they are owed $22.6 million.
