Bank sues Oxford developer over loan
Building Solutions, an Oxford-based company owned by developer Joseph Casalinova, is in a legal dispute with Mechanics Saving Bank over a $3.5 million commercial line of credit secured in 2008, according to the Sun Journal.
Casalinova is about to break ground on a hotel and conference center near the Oxford Casino.
The original loan was due to be repaid in 2009, but was renewed three times annually. The final date of payment for the entire amount of $3,498,461.88 was July 29, 2012.
When Building Solutions failed to repay the loan, the bank sued in Androscoggin County Superior Court for $3,688,230.20, plus interest, costs and attorneys' fees.
A judge attached the company's assets, the newspaper said, but according to a second lawsuit filed earlier this year by Mechanics Saving, Building Solutions transferred its assets to Casalinova, his wife, Joy, business partner Brian O'Donnell and Casalinova's other business interests.
According to an amended complaint filed in Androscoggin County Superior Court on Sept. 19, a judge had awarded Mechanics Saving a judgment for $3,706,587.60 against Building Solutions. The company hadn't paid the judgment and was insolvent, according to the complaint.
The second complaint says the Casalinovas and their business partner schemed to hide the true wealth of Building Solutions through “false audited financial statements.”
A court clerk told the paper a motion for summary judgment filed by Mechanics Saving in the 2012 complaint is pending. In the second suit, the court is waiting for the defendants to answer the second, amended complaint.
James Belleau, the bank's attorney, declined to comment in an email to the Sun Journal. An attorney for the defendants did not return a voice mail message from the paper Wednesday.
Most Recent
Most Recent
Comments