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March 24, 2009

Bankruptcy for Knox Mill?

By The Mainebiz News Staff

The owner of the former Knox Mill in Camden may be forced to put the property in receivership, a form of bankruptcy in which reorganization is coordinated by a trustee, because of nearly $20 million in unpaid mortgage bills.

PNC Financial Services Group, based in Pittsburgh, filed a civil action March 23 against Maine Investment Properties of Baltimore, the owner of the mill, and against LLCs that own related properties, according to VillageSoup. PNC says Maine Investment Properties and the other defendants, including the condominium association the Knox Mill East Owners Association, owe the bank $18.6 million in mortgage payments, according to the news website.

The Knox Mill properties include the mill, a 200,000-square-foot retail and residential property estimated to be worth about $27 million, the Ducktrap Retreat in Lincolnville, and various smaller properties along Mechanic and Washington streets in Camden. PNC Bank is asking the U.S. District Court to appoint Gray and Associates of Baltimore to manage, operate and sell the mill because of the company's experience managing "troubled businesses" and serving as Chapter 11 trustees, according to Village Soup.

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