Gorham Paper names Behrens affiliate as winning bidder for assets

By Sarah Lizee

Olympia, Wash., Dec. 15 – Gorham Paper and Tissue, LLC canceled an auction for substantially all of its assets scheduled for Tuesday and named Behrens Investment Group LLC’s affiliate, Gorham Acquisition, LLC, the successful bidder, according to a notice filed Monday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the purchase price under the stalking horse agreement includes (a) $8.75 million in cash payable by means of a completed Federal Funds wire transfer, less the deposit of $1 million, a portion of which was funded upon approval of the bid procedures, (b) a credit bid of all the debtor-in-possession financing held by the purchaser and (c) the assumed liabilities, which includes the debt owed by subsidiary White Mountain to the Bank of New Hampshire.

The agreement provided for a break-up fee of $300,000, expense reimbursement of up to $100,000 and an initial overbid of $450,000.

A sale hearing will be held on Dec. 18.

Gorham, N.H.-based Gorham Paper and Tissue manufactures towel and tissue rolls for at-home and away-from-home markets. The company filed bankruptcy on Nov. 4 under Chapter 11 case number 20-12814.

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