April 21, 2018
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Judge rejects Maine grocers’ bankruptcy petition

The Associated Press

PORTLAND, Maine — A federal judge has thrown out a bankruptcy petition filed on behalf of the Associated Grocers of Maine and lawyers say it’s unlikely the defunct distributor will be able to repay hundreds of creditors, including its former employees.

U.S. Bankruptcy Court District of Maine Chief Judge Louis Kornreich ruled Monday the receiver who oversaw the dismantling of the cooperative lacked the authority to file a bankruptcy petition.

The initial bankruptcy filing showed Associated Grocers of Maine has almost $6.6 million in assets but $23.5 million in liabilities.

Attorney Fred Bopp tells the Portland Press Herald it’s likely only secured creditors, owed a total of $6.7 million, will receive any money.

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