Bank of Maine sues grocer cooperative
The Bank of Maine is seeking to recover at least $2.5 million of its losses from the former directors and officers of the Gardiner-based Associated Grocers of Maine. The cooperative was shut down in 2011 through court action by the bank.
The Morning Sentinel reported the bank filed its lawsuit in Kennebec County Superior Court, naming as defendants the Associated Grocers of Maine and 17 people who were owners or former owners of grocery stores in the group.
The bank claims that the organization misrepresented information about its accounts receivable at the time of its 2011 dissolution through a court-appointed receiver. The lawsuit says the bank loaned millions to the cooperative in exchange for a security interest in the group’s assets, including its accounts receivable.
The bank is seeking to recover its attorneys fees for litigation related to the cooperative’s accounts receivable and for the value of those accounts that the banks says the cooperative did not disclose.
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