SOUTH LINCOLN – A majority of former Lincoln Pulp and Paper Co. employees voiced an interest Monday in pursuing a potential employee buyout of the bankrupt paper mill.

During two separate informational meetings at the Knights of Columbus Hall held in the morning and afternoon, more than 300 of the 500 displaced salaried and PACE union workers raised their hands as a show of support for union officials and associated parties to work toward the option.

Following information about health insurance and 401(k) benefits, displaced workers listened to a presentation by Michigan lawyer Deborah Groban Olson on the potential for pursuing an employee stock ownership plan for only the Lincoln facility. Olson, who specializes in employee buyouts and has been hired by the union, said an ESOP could utilize a private investor to put up funds to purchase the mill and shares in the new entity would be held in a trust.

The shares would be allocated to accounts for the employees, who could receive the shares or their financial value when they retired, Olson said.

As shareholders, the employees also could play a role in the major decisions made by the company, including approving a future sale or merger involving the company, she said.

“You can ultimately change the corporate culture over a period of years, so the people with good ideas will be listened to,” Olson told the morning crowd.

Generating employee support is a building block to putting the ESOP in motion, Olson said after the morning meeting. In order for an ESOP to be a viable option, a management team needs to be formed and a business plan developed so an interested investor will put up the capital to restart the mill, Olson said.

“We’re trying to put together a team with all the necessary information so we can be believable, so that we can get money to do this thing,” Olson said.

Working from rough estimates, Olson said an investor might need to put up $25 million to $30 million for the mill initially to reopen under an ESOP. Roughly $10 million to $15 million would be put toward satisfying the creditors in order to have access to the mill assets, while the remaining funds would be used as working capital for the endeavor, Olson said.

Some funding groups have been known to put up $25 million to $100 million for similar projects, so identifying funding may not be the most difficult piece in the puzzle, Olson said.

“The hardest part is putting something together that is a concretely believable plan and, if we can put that together, it’s not that hard to find the money,” Olson said. “Right now, a lot of people are trying to find places to put their investment capital.”

Once funding has been identified and a business plan is developed, ultimately a proposal would have to be approved by bankruptcy trustee Gary Growe, Olson said. Union officials pursuing the ESOP still are tracking down all the necessary financial information for the mill, she said.

With potential buyers showing an interest in the mill, local union officials aren’t looking at the ESOP as the only viable option, according to Duane Lugdon, an international representative for PACE.

“We’re not discounting the possibility that anybody could come forward with money who has the ability to get this plant running,” Lugdon said.

Lugdon said there is the potential that some interested buyers may be biding their time in the belief that the assets are losing value and that they may be able to buy the mill more cheaply, Lugdon said.

“It’s important to be a stimulus, if you will, to bring those people along and instill in them the understanding that we’re going to be aggressive about buying this plant,” Lugdon said. “If they want to buy this plant too, they better get busy.

“We intend to make this thing go,” Lugdon said. “We’re not going to give up until the breath is gone.”

At the end of the morning session, nearly all of the roughly 150 people who remained in the meeting raised their hands in support of pursuing an employee buyout option. Roughly the same number of employees raised a hand showing interest at the afternoon meeting.

Ralph Bishop, a 14-year employee of LP&P who worked in the paper room, said the concept sounded viable. Bishop also said he believed having workers as owners would increase the efficiency of the mill and would likely make for better financial management in the future.

“I think it’s very viable,” Bishop said. “I think there are hard-working people and they want to work. All we’re asking for is a place to work.”

How you can help displaced workers

Brewer area:

. Food can be dropped off at the Brewer Recreation Department (Brewer Auditorium), Wilson Street.

. A food bank for displaced workers will be open 8:30 a.m.-2 p.m. at the Greater Bangor Area Labor Council hall, 20 Ayer St. Sponsored by PACE Local No. 1-0403.

. To donate for fuel assistance, mail checks made payable to PACE Local 1-0403, in care of City of Brewer, 80 N. Main St., Brewer 04412.

Lincoln area:

. St. Mary’s Food Cupboard is open 9 a.m.-noon Monday-Friday in the basement of the Ballard Hill Community Center. The food cupboard is open for displaced workers according to the first letter of their last names:

. Mondays – names beginning with the letters A-F.

. Wednesdays – names beginning with the letters G-L.

. Thursdays – names beginning with the letters M-R.

. Fridays – names beginning with the letters S-Z.

The food cupboard is still open 9 a.m.-noon Tuesdays for anyone else who needs food assistance. For information, call 794-3510 or 794-8148.

. Food assistance is available 7-11 a.m. Thursdays from the food pantry at the Howland United Methodist Church. For information, call 732-3589.

. Food assistance is available 10-11 a.m. Mondays from the food pantry at the Chester Baptist Church on Route 116. For information, call 794-2541.

. Fuel assistance is available by calling Pastor Tim Shaw at the Community Evangel Temple in Lincoln at 794-6181. Donations can be made out to “LP&P Fuel Assistance” in care of Machias Savings Bank, 29 Main St. Lincoln 04457.

. Mortgage information meeting will be held 10 a.m.-noon, Wednesday, Feb. 11, at the Lincoln Town Office, 63 Main St.

. Job Retraining information sessions will be held 9 a.m.-noon and 1-4 p.m. Tuesday, Feb. 10, and Wednesday, Feb. 11, at the Knights of Columbus Hall, Rte. 2, South Lincoln.

Key Phone Numbers:

. Displaced workers can obtain information about unemployment benefits by calling toll-free (800) 593-7660.

. Displaced workers can obtain information about the MaineCare health care program by calling (800) 432-7825.