PORT TOWNSEND – A federal bankruptcy judge in Seattle issued an order Wednesday to set up interim financing that allows Port Townsend Paper Corp. to continue operations.
“It’s just a first step, but it’s obviously a move forward,” said John Begley, Port Townsend Paper’s president for the past nine years.
“We got what we requested. And the long-term structure will be approved down the road.”
The company – which owns the mill in Port Townsend that produces kraft paper for commercially used boxes and employs 310 people in Jefferson County – announced Tuesday that it filed late Monday for Chapter 11 bankruptcy protection to restructure its debt.
The legal move has no effect on the company’s 310 employees or operations, and actually secures the company’s future, company officials said.
