GREENWOOD — A twice-delayed foreclosure auction at a wood-products mill has been canceled until further notice, according to a lawyer involved in the matter.
David Sherman Jr., who represents Bank of America, said the auction scheduled for Wednesday at the Saunders Brothers mill in Locke Mills village had been called off. He said he could not comment on the reasons for the cancellation, and that notice of the auction will be posted again if it goes forward.
The notice of the foreclosure auction said SB Acquisitions LLC, a Maine company with a mailing address of Exeter Advisors in Boston, breached the conditions of a mortgage with Bank of America in 2007. The agreement included a revolving credit promissory note with a maximum principal of $1.7 million and a term note in the original principal of $800,000 on the mill property at 256 Main St. The town values the mill at $1,364,030.
The notice does not give the specific reasons for the auction, but the mortgage stipulates that one can take place as relief for nonpayment, failure to meet obligations, or other circumstances. Two companies have claimed liens on the property totaling $113,319.12, and Saunders Brothers was fined $11,045 by the Department of Environmental Protection in November due to the improper disposal of hazardous waste.
The auction was originally scheduled to take place on March 29 before it was delayed to April 7. On that day, it was adjourned for another week.
Saunders Brothers was founded in 1900 and manufactures dowels and other wooden products at the Greenwood mill. Its corporate offices are located in Westbrook. According to its LinkedIn profile, the company employs 70 people.
In a statement released in March, Saunders Brothers said the mill would not close. It also said Joseph Woodbury of National Wood Products, a former Saunders Brothers site in Oxford, was interested in the property. Woodbury was not available for comment Wednesday.