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December 3, 2010

Legal troubles delay cannery sale

By The Mainebiz News Staff

The Massachusetts-based lobster company buying the shuttered former Stinson Seafood cannery in Prospect Harbor plans to complete the sale by mid-January, following legal and financial delays.

Live Lobster Co. in August entered into a purchase agreement with Bumble Bee Foods LLC for the former sardine cannery in Hancock County, and at the time hoped to complete the deal within 70 days. But the complexity of the deal and a lawsuit filed against the company pushed back the sale to Jan. 14, company President Antonio Bussone told The Associated Press. Not long after the sale was announced, a federal court in Boston issued an injunction against the company at the request of former general manager and current minority shareholder Alan Brown, who sued the company for unfair termination. Last week, a U.S. District Court judge ruled that Live Lobster could not use its assets as collateral to buy the cannery with financing through TD Bank, according The AP. Bussone told the news agency the company has lined up financing from other lenders.

Live Lobster Co. plans to buy and sell lobster and bait and eventually process lobster, employing 30 to 40 employees by the end of 2011. Bumble Bee in February announced it would close the cannery, putting nearly 130 people out of work.

Go to the article from The AP >>

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