Yes get the paper towel WARM like brooder warm and get it wrapped around the little one. Chances are it is stuck to the paper towel and he is trying to move around and cannot because it is stuck to the towel, therefore pulling out his insides. get it warm and wet before it dies....
One thing I have done with my chicks when they are sticky and cannot open eyes, or move their wings is I take a small bucket and fill with warm water and put their little butts down in there and take water and wipe with my finger to loossen the sticky stuff, you might try this with the paper towel and it could loosen the towel enough to let him suck his insides back in. DON'T cut it off.
To keep their heads above the water I put their neck between my first and second finger and let them rest on my palm...It works slick!