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TD Bank Pulls Out of $8M Park Purchase

March 28, 2011 by   - () Leave a Comment

Less than a month after TD Bank submitted the winning $8 million bid in the foreclosure sale of Strawberry Park Resort Campground in Preston, Conn., the company has now decided it does not want to buy it, a move that could eventually force the 160-acre campground into a second foreclosure sale, theday.com reported.

In a court hearing on March 21 to finalize the sale of the campground, the bank presented Superior Court Judge James J. Devine with an objection to the approval of the sale, citing seven reasons.

On behalf of TD Bank, attorney Scott DeLaura asked the court to reject the sale.

According to court documents, DeLaura described the approximately 300 people who attended the foreclosure as “hostile” and wrote that “at least one individual was overheard making disparaging remarks about the facility.”

He also asserts that the coverage The Day gave to the continuing bankruptcy trial and the foreclosure sale “chilled interest in the sale.”

The first bid from a Bozrah campground owner was for just $10,000. TD Bank followed that up with a bid for $8 million in order to “stimulate” the bidding, DeLaura wrote.

There were no other bids after that and TD Bank, which held a slightly more than $8 million mortgage on the property, was declared the winning bidder.

DeLaura also mentioned that the park’s co-op, which comprises owners of individual units, may be exposed to liabilities from the campground itself and that the 358 unsold units in the park are subject to that liability. He claims that TD Bank was never supplied with financial information it requested in regards to the last three years of operation at Strawberry Park.

Another mortgage holder, ABCO Realty LLC, also filed an objection to the sale on Monday stating that based on TD Bank’s $8 million bid, it would not receive proceeds from the sale. If the sale is approved, the firm is worried it would not receive its $650,000. The company also objects to the sale because of a specific liability to the campground’s cooperative.

Judge Devine has continued the hearing until April 4 at 2:00 p.m.

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