AUBURN – Operations are “winding down” at a local manufacturer of emergency vehicles after financial difficulties prompted the company to place itself in receivership.
Emergency Vehicles of Maine, which moved into a new facility on Foss Road last fall, took the action voluntarily at the request of one of its primary lenders, Northeast Bank.
EMV’s owners, Ed Pollard and Chuck DeGrandpre, hope the decision to place control of the company into third-party hands will protect lenders’ investments and resolve financial problems at EVM.
“We’re working hard to help with finding a buyer or an investor to work with the issues,” said Pollard, who declined to elaborate. “The company is still operating. There are some financial issues that need to be resolved here.”
One of those issues is finishing a tanker truck for Durham’s Fire Department. Lawyers for the town are seeking a restraining order to prevent the receiver from selling EVM’s assets, which include the half-finished fire truck. A hearing is set for today in Androscoggin Superior Court.
An eviction order by EVM’s landlord, the Lewiston Development Corp., is also adding to the company’s troubles. LDC financed the $1.6 million building in Foss Business Park and leased it to EVM last fall.
Lucien Gosselin, director of LDC, acknowledged that the company is in arrears on its lease payments.
“They are struggling, trying to find an appropriate resolution,” said Gosselin.
Northeast Bank sought a receiver two weeks ago. Sam Anderson, counsel for the bank, said the receiver notified the bank that the business is stalled due to a lack of money.
“At this point we are exploring our options,” Anderson said. “We are winding down, but have not yet ceased operations.”
According to Marilyn Thomas, director of managed assets for the bank, a receiver steps into the shoes of a business owner. He or she has the power to hire, fire, develop operating budgets, approve or deny expenses and other management duties. James Ebbert of the McShane Group has been appointed receiver.
“The receiver does what is best for the business,” said Thomas.
In addition to the Durham tanker truck, the company is also building equipment for municipalities in New Hampshire and Vermont. Durham has paid nearly $112,000 toward the total $140,000 cost for the truck, which was supposed to be delivered last December, according to court papers. The town’s existing tanker is being repaired after it broke down en route to a fire two weeks ago.
Northeast Bank issued loans to EVM, securing them with the company’s equipment and other collateral. Thomas, who declined to name the amount of Northeast Bank’s investment, said the receiver is trying to find a buyer for EVM to avoid selling its assets at auction.
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