Rockland contractor looks to reorganize
Rockland contractor Ferraiolo Construction Inc. plans to reorganize after filing for bankruptcy and has reached a tentative settlement agreement with its creditor the Bank of Maine.
The Bangor Daily News reported that settlement, which avoids the imposition of liens the bank secured in March to recover around $1 million it is owed, hinges on court approval of the company's reorganization plan that enumerates payouts to creditors.
The lawsuit from the Bank of Maine is now on hold until a Sept. 16 hearing, the paper reported, and the court has allowed the company to continue operating.
The bank's complaint alleges the company's owners improperly diverted portions of a $10 million loan for private use, including the transfer of $1.3 million out of the country for construction of a villa in Cervinara, Italy, outside of Naples.
As part of the reorganization plan, the company auctioned off a number of its properties and construction equipment in midcoast and southern Maine.
George Marcus, representing Ferraiolo Construction, told the paper that the reorganization plan will be completed this summer and outline how much the company plans to pay 29 creditors with payment claims totaling $420,880.
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