OXFORD – A move by the owner of Oxford Homes Inc. to save his modular manufacturing business may leave many of the company’s creditors out in the cold.

Some of those creditors received a letter from Oxford Homes earlier this month stating the company was being sold and sale proceeds would be used to pay workers, lenders and the company’s taxes.

“Regrettably, Oxford Homes Inc. is not able to make any payments to its general creditors at this time, but we are making an effort to generate a small dividend after liquidation of the small residue of assets not purchased by Eco-Building Systems,” the letter from Pete Connell of Norway, Oxford Homes’ president, said. “We will communicate further with you if and when such a dividend is likely.”

After 30 years in business, Oxford Homes on Route 26 sold its assets Aug. 8 to Eco-Building Systems, a limited liability corporation in Maine. Oxford Homes said it was unable to overcome a downturn in the housing market.

While seen as a positive business move on the part of Oxford Homes, some creditors say the company still owes them hundreds of thousands of dollars.

“I think the letter’s crap,” said Dick Record, manager of Record Home Supply on Route 26 in Oxford. Record did not divulge how much money his company is owed.

“In my personal opinion, how can anyone sell assets and not the liabilities of a company?” he asked. “(Connell) knew he had no intentions of paying us. You just don’t do it that way. It’s just unbelievable.”

Mark Bean, owner of Bean’s Homes in northern Vermont, said Oxford Homes owes him thousands of dollars as well.

“I’ve been a dealer with him for 30 years, and this takes me a little by surprise,” Bean said. “I’ve had a feeling the last year or two that something was wrong.”

Bean said he’s troubled there was no communication before the letter.

“I’m disappointed he wouldn’t call me and let me know what’s going on,” he said. “I’m very disappointed. Something happened. Something changed.”

Bean, who said he was once the largest dealer of Oxford Homes in New England, said the payment issue is not new, however.

“Pete’s been down this road with bankruptcy,” he said, referring to a bankruptcy filing by Oxford Homes in 1994. Nearly 15 creditors filed against the company in U.S. Bankruptcy Court in Portland in that case, including the town of Oxford, the state of Maine and Norway Savings Bank.

Connell, who has been rehired by Eco-Building Systems to act as the new company’s president, said Thursday that he is trying to resolve the problem with his current creditors.

“We’re working on it,” he said. “We’re talking to most of them on a regular basis. I’m working through all of that.”

Connell would not say how much outstanding debt the company has, but according to several creditors, the estimates could easily top $100,000 and involve companies in New England and possibly beyond.

The company is working on paying off the approximately $33,000 in 2007 property taxes owed to the town of Oxford, Eco-Building Systems Manager Steve Goodman said Thursday. Meanwhile, a lien was placed on the property in the name of Killarney Holdings on Aug. 22, giving notice to the company that payment is due within 30 days or foreclosure could take place.

Peter Shrair, an attorney in Springfield, Mass., who represents Eco-Building Systems, said that company purchased only equipment and assumed only limited liabilities. It did not buy the real estate but did assume the liability on the property tax.

“We bought the assets and agreed to assume various liabilities, but not all liabilities,” Shrair said. Equipment leases were liabilities the new company did not assume, he said.

“My understanding is that Oxford Homes was in trouble, and no one would be paid if something wasn’t done,” Shrair said of the recent sale.

Connell said the sale to the limited liability company, which is a legal form of business structure offering limited liability to its owners, will provide a new source of business that he believes will result in affording vendors an opportunity to recoup some of their losses through new sales.

Connell’s letter to creditors states sale proceeds were used to satisfy debts, including outstanding taxes. But Ellen Morrison, the town’s deputy tax collector, said no payment had been received for outstanding property taxes. The outstanding taxes, which increase by about $9 each day, will be in addition to the fiscal 2008 taxes now owed in the amount of $29,553. The company also owed a personal property tax from 2007 of $3,566. No lien is placed on outstanding personal property taxes, she said.

The company’s buildings are assessed at $1.2 million and the land at $199,300, Morrison said. The Oxford Homes Web site stated Friday that there is a total of 65,000 square feet of building space on 16-plus acres. As of last October, 124 employees were at the site.

Shrair said Eco-Building Systems saw the purchase as an opportunity to expand the plant and save a factory that made a good quality product, but couldn’t sustain itself.

Goodman said the plan is to manufacture housing for different modular communities, such as the ones Eco Built Communities in Boston are developing throughout New England.

“They’ve already started ordering homes from Eco-Building Systems,” he said of the Boston-based company, which he says is a residential development firm serving New England and beyond. Goodman said Eco Built Communities is simply a trade name that represents different developments that are “eco,” or ecologically friendly.

“We believe the market that Eco-Building Systems will provide will be in demand because of the eco-friendly nature, energy efficiency and modern green buildings. That’s where we’re heading,” he said.

Goodman said not only will current employees be kept, but applications are being taken for new workers.

Connell said Thursday that he has hired five more employees this week and intends to hire another five or so.

“Everything is very positive here in the middle of a housing downturn,” he said.

Meanwhile, some of Oxford Homes’ creditors aren’t seeing it that way.

“There’s turmoil going on,” Bean said.