PORT TOWNSEND – Port Townsend Paper Corp. officially exited Chapter 11 bankruptcy protection on Monday as a private company under the control of its bondholders.
The paper mill, which employs about 310 people and is the largest private employer in Jefferson County, will follow a reorganization plan that calls for it to pay its unsecured creditors within five business days.
As a group, the 729 unsecured creditors will receive about 37 percent of the money they were owed – between $21 million and $22 million – when the company filed for bankruptcy protection in January.
But some of those creditors will receive as little as 5 percent of their claim.
The plan will pay 100 percent to those with claims amounting to $2,000 or less and give those with higher claims the option of accepting $2,000 or receiving 5 percent to 10 percent of their claim.
The unsecured creditors include individuals, businesses, government agencies and nonprofit organizations in Port Townsend, Port Angeles, Port Hadlock, Quilcene, Sequim, Carlsborg, Forks and Neah Bay.
