Gorham Paper and Pulp files for bankruptcy

GORHAM — Gorham Paper and Tissue filed for Chapter 11 bankruptcy last Wednesday and at the same time agreed to sell its assets to Behrens Investment Group of New York. Local officials said they have been told Central National-Gottesman, Inc, will ultimately be the new owners.

The asset purchase agreement calls for Behrens to pay $8.75 million for GPT and its subsidiary, White Mountain Tissue. Behrens will serve as what is called a “stalking horse bidder” in the proposed auction and has agreed to provide, subject to the bankruptcy court’s approval, financing to allow GPT to keeping operating through the bankruptcy proceedings. The stalker agreement calls for the purchase to close by the end of the year.