NewPage Declares Bankruptcy

Today we learned that NewPage Corp. has filed for Chapter 11 under the United States bankruptcy code.

The announcement confirms many discussions that have been going on for months in Rumford.  We don't have much information to go on, but I am sure we will learn more in the coming days and weeks.  What we do know is that the issues are structural financial issues for the whole company -- not any issues specifically about the facility in Rumford.  I've had many family and friends who have worked for the mill for years -- and it has been a well managed facility with a strong and committed workforce.  Unfortunately, in this economic environment hard work is not always rewarded.  This is an instance where a company has borrowed a great deal of money, and was significantly over leveraged just before the global economy collapsed as a result of decisions made a long way from the River Valley.  It isn't the quality of the workforce; it isn't local regulation or the local tax climate or anything like that which threatens these jobs -- but we still need to concentrate on what we can do to keep the facility in Rumford operating and strong.  We don't want to lose these jobs because someone on Wall Street at an equity capital firm made a series of bad decisions.

Governor LePage and his people won the election with the claim that they understand business -- what business needs and how business operates to create and maintain jobs.  I hope they are right.  I am looking forward to working with the Governor and his staff to maintain this vital industry and these jobs that anchor the entire economy of northern Oxford County.  I hope they can apply the lessons they've learned in dealing with the situation of the mills in the Katadhin region to help mainatin these quality jobs for citizens in the River Valley.  I'm ready to roll up my sleeves and work with the administration and do whatever we need to keep the NewPage mill open, operating and maintaining the quality jobs that are essential to this region.  What we can't afford in Maine is to have working people in Rumford pay for the mistakes made by Wall Street MBAs who will not suffer the economic consequences of their actions.