The judges also will decide whether there is any issue left to decide, given the fact that the U.S. Bankruptcy Court in Bangor had given the holder of the $7.3-million mortgage, Schoodic Point LLC, permission to proceed with the March 10 auction.
According to John McVeigh, a Portland attorney representing Schoodic Point LLC, “The issue in the hearing is going to be whether or not, given what happened while we had relief from the stay, does the debtor have any interest in this property at all anymore to save, and we say no.”
David Johnson, a Portland attorney representing Ocean Wood Enterprises LLC, of which Jim Brunton is a principal, said he had asked U.S. Bankruptcy Court Judge Louis Kornreich to stay the auction until Ocean Wood’s third bankruptcy filing was considered, but Kornreich issued an order allowing the auction to go forward just five minutes before it was scheduled to take place.
In asking that the auction go forward, McVeigh had argued that Ocean Wood Enterprises presented no evidence of ability to reorganize and said postponing the auction would harm Schoodic Point LLC, of which Nicholas Bayley is a principal.
There were no bidders on the largest parcel, but Dana Rice, a local lobster dealer who has leased the property for several years, purchased the much smaller piece — a lobster pound, two acres of land, and several buildings — for $345,000.
A minimum bid of $5.5 million was set on the larger piece of property by Schoodic Point LLC. Since there were no other bidders, Schoodic Point LLC’s minimum bid gave the entity ownership of the property.
The total assessed value of the Ocean Wood property is $6.2 million, according to a prospectus provided by Tranzon Auction Properties, which handled the auction. Bayley has said the property’s market value is about $12 million.
The auction generated attention because of the size of the property, which includes more than one mile of waterfront just outside the Schoodic portion of Acadia National Park.
Annual taxes for both properties are $48,781.54. Outstanding taxes total $49,288.88, according to Tranzon.