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MANISTIQUE -- When the bankruptcy announcement was made on August 5, Manistique Papers owed their original lender, RBS Citizens, $11 million.  But now mBank and the Michigan Economic Development Corporation have agreed to pay off the existing loan.

mBank purchased approximately $11 million worth of loans from RBS Citizens for $6.8 million.  That figure was a purchase settlement amount with RBS.  mBank then sold $2.5 million as a participation loan to the Michigan Economic Development Corporation.

The financial transaction removes the immediate threat of liquidation, which could have begun as early as Thursday in a Chapter 7 bankruptcy hearing.  And a permanent closure of Manistique Papers would've had a widespread ripple effect.

Local business owners said they've already noticed the difference.

“I pretty much saw a bit of a decline,” aid Cedar Street Café manager, Carla Cheuvront.  "And as the weeks have been going on, customers have been worried about not knowing what the outcome was going to be."

But now the Chapter 7 motion has been cancelled, and it was made possible by many people working together behind the scenes, from the federal level, to U.P. legislators, to local officials.

“There was no Republican or Democrat,” explains State Senator Tom Casperson.  “And everybody just worked together, and the end result was a positive one."

Even Manistique residents marveled at their community's ability to pull together.

“We used to live in the Lower Peninsula,” said Manistique resident, Raymond Leali, “and I would say that people in the Upper Peninsula are far more resilient, having to get along on things more with less."

Had the mill closed, the impact would have been especially devastating to schools and families in the area; parents would have had to relocate for work.

“Our children are our business here at Manistique area schools,” said Kathy McDonough, Superintendent of the Manistique Area Schools District.  “And one child or one family leaving us is one too many."

mBank President and Chief Executive Officer, Kelly George, said there was no other option but to find a way to save Manistique Papers.

“You know, the outreach has been tremendous,” said George.  “Why we got into this is because everyone knows how important that mill is."

The goal is to resume production next month, but Manistique Papers is still in survival mode.  They'll work to restore profitability and improve their earnings over the next several months.