March 3 Maine Campground Auction Set
A federal judge essentially has thrown out a bankruptcy filing by the owner of a Birch Harbor, Maine, oceanfront campground.
Judge Louis Kornreich, presiding Friday (Feb. 20) in U.S. Bankruptcy Court in Bangor, ruled that Ocean Wood Enterprises LLC cannot file for bankruptcy because the company's property, a 148-acre parcel in the Gouldsboro village of Birch Harbor, is not insured, according to the Bangor Daily News.
Insurance is required to file for bankruptcy in order to prevent any creditor claims from being affected in the event a liability claim arises after a debtor files for bankruptcy, according to attorneys involved in the case.
With the dismissal, representatives of the lending entity that holds the mortgage of the property say they intend to go ahead with a March 3 foreclosure auction on the campground. James Brunton filed for bankruptcy the morning of Feb. 17, hours before Schoodic Point LLC was set to hold a foreclosure auction on the property.
Officials with Schoodic Point LLC, which also holds the mortgage to an adjacent 2-acre parcel Brunton owns in Bunkers Harbor, said Brunton owes the company more than $7.3 million. The loan was supposed to be repaid last December, they said.
What might happen with the property has been a subject of local interest because of its possible inclusion in a resort development that has been proposed for the Schoodic Peninsula. Winter Harbor Properties, which has indicated it plans to build a large-scale resort on 3,300 acres on the peninsula, has a right of first refusal on the campground.