Hackman Capital Leads Investor Group in AZ Paper Mill Purchase
Hackman Capital Partners confirmed its acquisition of Catalyst Paper’s shuttered paper mill and certain other assets located in Snowflake, AZ.
Catalyst Paper, a producer of mechanical printing paper, closed the Snowflake facility in September. Catalyst’s assets were sold at auction in New York City on December 17, 2012, as part of restructuring proceedings in a Chapter 15 bankruptcy matter filed in Delaware.
The investors, led by Hackman Capital, include Hackman Capital Equipment Fund, PPL Group, Capital Recovery Group, Rabin Worldwide and community stakeholder Aztec Land and Cattle Company Limited.
The assets sold at auction to the Hackman-led consortium consisted primarily of the paper mill improvements, personal property and 19,000 acres of real property.
Michael Hackman, founder and CEO of Hackman Capital noted that his firm has significant experience and sophistication dealing in complex transactions of this nature. Because Catalyst removed certain parts of the plant to prevent the facility from being operated as a paper mill going forward, the consortium will liquidate the structures and equipment over the next 12 months.
“The liquidation is a daunting undertaking based upon the huge size of the facility; however, there are significant equipment and other assets that will draw real interest from buyers,” said William Firestone of Capital Recovery Group.
Hackman Capital has experience in acquisition, redevelopment and asset management.