Inn owners file for bankruptcy in fed court

Posted March 16, 2010, at 8:35 p.m.
Last modified Jan. 30, 2011, at 11:46 a.m.

BAR HARBOR, Maine — One lodging property has been put up for sale and a second is waiting for the auction block while their owners pursue bankruptcy protection in federal court.

Joan and Daniel Mills filed for bankruptcy protection on Feb. 24, according to documents on file in U.S. Bankruptcy Court in Bangor. The filing caused the delay of a foreclosure auction of The Ledgelawn Inn on Mount Desert Street.

Tranzon Auction Properties, which had been hired by Machias Savings Bank to conduct the auction, planned to auction the property on Feb. 24 but put it on hold when the Millses filed for Chapter 11 bankruptcy protection earlier that morning.

The auction has been re-scheduled for 11 a.m. Friday, March 19, according to the auction firm.

The Millses’ bankruptcy attorney, James Molleur of Biddeford, has not responded to multiple requests for comment. The Millses, who are not listed in the area phone book, could not be contacted Tuesday.

According to the Millses’ bankruptcy protection documents, they have $2.6 million in assets and $4.5 million in liabilities.

The Millses have two mortgages on another lodging property they own, the Sea Breeze Ocean View Motel on Route 3 between the villages of Hulls Cove and Salisbury Cove. According to Bankruptcy Court documents, the Millses purchased that property in 2002 for $2 million.

The 36-room ocean view motel is listed for sale by The Swan Agency for $3,095,000, according to the agency’s Web site.

The Ledgelawn Inn is in a mansion built in 1904. The inn has 21 rooms in the original mansion building and 12 more rooms in a “carriage house” built in 1982. The Millses bought the inn and the parcel of nearly 1.5 acres that it sits on for $2.8 million in February 2005, according to Bar Harbor’s official database of assessed properties.

Besides the Ledgelawn Inn and the Sea Breeze Motel, the Millses own, either separately or jointly, three parcels of real property in Hancock, according to bankruptcy documents. The documents also indicate that the couple, either separately or jointly, have stock or financial interest in the Chiltern Inn in Bar Harbor and the Smugglers Cove Inn in Boothbay.

A woman who answered the phone Tuesday at the Smugglers Cove Inn and identified herself as the manager said the Millses no longer have any connection to the motel. The Ledgelawn Inn and Sea Breeze Motel, both seasonal properties, are closed for the winter.

SEE COMMENTS →

ADVERTISEMENT | Grow your business
ADVERTISEMENT | Grow your business

Similar Articles

More in Business