Red Shield Environmental LLC is being auctioned in October with a starting bid of $11.5 million.

The company’s lawyer, Robert Keach, says he’s withdrawing a request for approval of a $13.6 million loan to restart operations. The bankruptcy court hearing for that loan has been postponed three times.

Keach says opening bids for the Old Town Maine company will be accepted until Oct. 20.

Red Shield and its subsidiary, RSE Pulp & Chemical, laid off 160 workers and filed for Chapter 11 bankruptcy last June.

Posted: 09|20|08 at 10:04 am. Filed under: US News.