"The agreement is not yet done, but they feel comfortable enough to submit an application for review with the (Memphis and Shelby County) Industrial Development Board," said Brian Pecon, director of economic and resource development for the city and county.
Pecon said American Tissue's petition will be considered by the IDB at its Sept. 20 board meeting. The board considers tax freezes on new investments. Pecon said the application for the tax freeze shows the company plans to invest about $38 million in new equipment. It also will spend about $28.3 million to buy the existing equipment.
The company is seeking a 10-year tax freeze worth about $5 million on the investments.
American Tissue has paper mills and other facilities in New Hampshire, New York, Wisconsin, Oregon, California, Harriman, Tenn., and Mexico.
Global Tissue in North Memphis, filed for Chapter 11 bankruptcy protection in July. American Tissue later filed a bid to buy the plant in bankruptcy. The Global Tissue plant closed abruptly on May 10. The company ran into significant financial problems when Kimberly-Clark, which purchased 30 percent of the mill's production, dropped its purchases.
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