Agreement under way to sell LCP Chemicals

The owner of LCP Chemicals in Orrington has reached a tentative agreement to sell the plant to a group of investors led by Julian and Lester Sobin.

The Sobins helped to start LCP — then known as IMC Chlor-Alkali Inc. — in 1967. The chemical plant changed hands several times during the past 25 years, and it is now owned by Hanlin Group Inc. of Linden, N.J.

Hanlin sought protection from its creditors in July 1991 under Chapter 11 of the U.S. Bankruptcy Code. This week, Hanlin asked the bankruptcy court for permission to go forward with “necessary pre-acquisition activities out of which a final agreement and sale may result.”

LCP makes chlorine and related chemicals for paper mills and other customers in New England and the Maritime Provinces.

Arthur Rawl, executive vice president of Hanlin, said the company worked closely with a committee of its creditors to structure the LCP deal. If the bankruptcy court approves, the sale could be completed in five or six months.

Rawl declined to discuss the financial details of the transaction. He said the sale will not affect operations at LCP, which employs about 60 people.

The Sobins, who live in Massachusetts, could not be reached for comment Thursday. Julian Sobin told the Bangor Daily News last year that he would continue to operate, and possibly expand, the plant.

Reportedly, the Sobins would bring back Peter DeAngelis as executive vice president of the Orrington operation. DeAngelis, a former Orrington resident, headed the plant for its first 15 years of operation.

Henry Tate, who currently is plant manager at LCP, will be leaving Sept. 10. Edward Imbert, who recently joined the company as technical manager, will serve as acting plant manager until a replacement is found for Tate.

While the Sobins primarily are interested in the Orrington chemical facility, they have explored the possibility of buying its sister plants in Acme, N.C., and Brunswick, Ga.

The Sobins aren’t the only people interested in Hanlin assets. Holtrachem, a chlorine distributor based in Massachusetts, filed a competing proposal with the bankruptcy court in early August.

Rawl said Holtrachem proposed to take control of the entire Hanlin Group, not just LCP. He recently told Chemical Week, a trade publication, that the proposal had been rejected several times by Hanlin’s directors and a committee of its unsecured creditors.