Bedard hearing delayed 2 weeks Scheduling conflict forces postponement

BANGOR – Lambert Bedard, the former owner of bankrupt Great Northern Paper Inc., will not be cross-examined today on his request to be paid at least $37,000 plus expenses for managing the company in the month after it was placed under bankruptcy protection.

Because of a scheduling conflict at U.S. Bankruptcy Court in Bangor, a hearing on Bedard’s request that started last week now will pick up again beginning at 9 a.m. Wednesday, Dec. 31, in the Bangor courtroom.

Bedard is seeking $37,154 – or $1,515 per day plus expenses – for administrative duties and other services he performed between Jan. 9, the day he put the company into bankruptcy, and Feb. 5, the day he stepped down as president.

In testimony last Friday, Bedard said he is entitled to be paid for his services because they were essential to the well-being of the mills in Millinocket and East Millinocket. He said that his education and engineering and management background were used to help him preserve the machinery from deterioration by the freezing cold weather, and to field questions from eventual buyer Brascan Corp. of Toronto and other interested suitors.

At issue is whether Bedard actually performed the duties he said he did, and during the time he said he did them. Also at issue is whether Bedard should be classified as an “insider” or as a consultant. That determination would be used to decide whether Bedard should be paid right away or wait in line with other creditors, if the judge rules he should be paid at all.

At least six times during his testimony Friday, Bedard said it was his sincere intention to restart the mills as soon as possible after they were shut down in what was to be a temporary two-week work stoppage on Dec. 22, 2002.

“All along that was my objective,” Bedard said.

The East Millinocket mill was restarted in August under new ownership and a new name, Katahdin Paper Co. The Millinocket mill could be restarted under the same name in the spring.