Category Archives: Personal Bankruptcy

12 February 2020: Kelley Bankruptcy Wrapping Up

Once the Clary Lake Association purchased the dam from Paul Kelley’s bankruptcy estate back in October 2018, I pretty much stopped paying attention to what was going on in those court proceedings. I have over the months however continued to receive various court filings, all interesting after a fashion, but some more interesting than others. Nonetheless I haven’t seen fit to share any of them with our readers, but today I received the Trustee’s Final Report which details how the $80,000 we paid for the dam was spent, and it’s worth sharing. Continue reading

28 September 2018: Bankruptcy Judge Approves FREE and CLEAR Sale of Dam!

YES!At a short hearing held today at 10 AM in Bangor at the U.S. Bankruptcy Court, Judge Michael Fagone granted the Trustee’s motion to sale the Clary Lake dam to the Clary Lake Association free and clear of the restrictive covenants under sections 363(F)(5) of the U.S. Bankruptcy code. Gone too is the Medius mortgage under 363(F)(2). Further, the Judge granted the Clary Lake Association Good Faith Protections provided by section 363(M) of the U.S. Bankruptcy code. The Judge declined to allow the immediate sale of the property so we will have to wait to take title to the Clary Lake dam in 14 days at the expiration of the appeal period. Should AQF or Richard Smith (or anyone else) decide to appeal today’s ruling, 14 days from today our attorney will simply file a motion to dismiss and <POOF> the appeal will disappear, thanks to the 363(M) Good Faith Protections. Continue reading

Road Trip!

So who’s planning on attending the hearing in Bangor this Friday? Who’s thinking of it? I think it would be great for a contingent of Clary Lake people put in an appearance. This is the hearing when the Judge will rule on the Sale Motion and if past hearings are any indication, this one promises to be very interesting! If you’re planning on attending, drop me an email and let me know.

The hearing is at the U.S. Federal Bankruptcy Court at 202 Harlow Street, Bangor Me. See the previous post “Bankruptcy Judge to Issue Ruling in Open Court” for more information.

 

17 September 2018: Bankruptcy Judge to Issue Ruling in Open Court

We’ve all been anxiously awaiting a decision from the Bankruptcy Court on the Clary Lake Association’s efforts to purchase the Clary Lake dam from Paul Kelley’s bankruptcy estate. This morning Judge Fagone announced his intention of issuing an Oral Ruling on the Trustee’s Sale Motion in open court at a hearing at 10 AM on Friday September 28th at the United States Bankruptcy Court at 202 Harlow Street, Bangor, Maine. The hearing will be open to the public. A date for a ruling is not the same as a ruling, but I’ll take it. At least now we have an end date for the Sale Motion!

Given how much time has passed since oral arguments back on July 27th, we were all expecting the Judge to issue a written decision but our attorney assures us that Judges issue oral decisions in open court with some frequency. We have every reason to believe the Judge will approve the sale of the Clary Lake dam at that hearing, with the only question being whether he sells us the dam free and clear of the restrictive covenants or approves the sale with the covenants in place. Either way we’ll own the dam. The closing will most likely take place the following week. We have a contingency plan in place to deal with the covenants if the Judge decides not to sell the dam free and clear.

We had not counted on this sale process taking so long, and it remains to be seen whether there is enough time this fall to get the dam permanently repaired or whether we’ll need to wait until next summer for that. Needless to say we’ll do everything we can to get the dam repaired and the lake level restored as quickly as possible.

If anyone is interested in attending the hearing and is looking for a ride, get in touch with me about carpooling!

27 July 2018: Final Sale Motion Hearing Audio, No Ruling Yet

Oral arguments of the Final Sale Motion hearing took place today before U.S. Bankruptcy Court Judge Michael Fagone. Trustee Jeffrey Piampiano was represented by attorney Kaitlyn Husar, the Clary Lake Association [CLA] was ably represented by attorney Randy Creswell, and Richard Smith and Aquafortis Associates LLC [AQF] were represented by attorney Louis Carrillo. The Trustee and CLA were to receive 40 minutes combined to present their arguments in support of the Sale Motion, which time was to be split roughly equally between them. Attorney Carrillo was to be given 40 minutes to present his arguments supporting Smith’s and AQF’s objections to the Sale Motion. Finally, the Counsel for the Trustee was to be given 10 minutes for rebuttal. In fact, each party went over their time limits a little bit. Also present at the hearing representing the Maine DEP was Assistant Attorney General Scott Boak and co-counsel Kevin J. Crosman. The hearing started promptly at 10 AM and lasted about 2 hours. No ruling was issued today: after hearing the oral arguments, Judge Fagone took the matter under advisement and said he will issue his Decision and Order just as soon as he can. While I had hoped for a ruling from the bench today, the Judge was presented numerous cases to review and that was far more than he could be expected to do today.

I thought counsel for the Trustee and counsel for the CLA did a GREAT JOB of presenting their arguments, and I thought counsel for Smith and AQF was way out of his comfort zone did an incredibly lousy job of presenting his arguments, but don’t take my word for it, listen to the hearing audio and decide for yourself. Continue reading

26 July 2018: Final Sale Motion Hearing Tomorrow

A quick reminder: oral arguments on the Final Sale Motion are scheduled for tomorrow morning at 10 AM at the U.S. Bankruptcy Court in Portland. This will be the 4th and presumably final hearing on the proposed sale of the Clary Lake dam to the Clary Lake Association. You can read the original post about the hearing for more information (see Final Sale Motion Hearing Scheduled). I will be attending the hearing, and will post the outcome here as soon as I can. Stay tuned.

12 July 2018: Final Sale Motion Hearing Scheduled

The Judge in the Paul A. Kelley Jr. Bankruptcy case has issued an Order and Schedule for oral arguments on the a Final Sale Motion on July 27th, 2018 at 10:00 AM. The hearing will be at the U.S. Bankruptcy Court, 537 Congress Street in Portland Maine. The Order is only 4 pages long and is remarkably easy reading as Court Orders go, and I highly recommend everyone read it through so you’ll have an idea of the issues the court is grappling with. The Order both summarizes the actions taken to date starting with the May 22nd filing of the Motion to Sell up to last week’s July 5th evidentiary hearing, and then lays out 8 questions that the Judge wants the parties to address in their oral arguments before the court. Continue reading

06 July 2018: Sale Motion and Evidentiary Hearing Audio [UPDATED]

President Malcolm Burson and my wife Margaret and I attended yesterday’s Sale Motion hearing. Other parties in attendance were Butch Duncan, Richard Smith and Paul Kelley, counsel for the Clary Lake Association Randy Creswell, Bankruptcy Trustee Jeffrey T. Piampiano represented by Kaitlyn M. Husar, Esq., Assistant Attorney Generals Scott Boak and Kevin Crosman representing the Maine DEP, and attorney Dennis Carrillo representing Richard Smith and AQF. Regrettably, Paul Kelley’s bankruptcy attorney J. Scott Logan was not in attendance. Continue reading

05 July 2018: No Sale Today, Bankruptcy Case Continued

I had hope to be able to tell everyone today that the U.S. Bankruptcy Court had approved the sale of the Clary Lake dam to the Clary Lake Association, but that announcement is going to have to be postponed for a few weeks. Thanks to objections raised by Richard Smith and Paul Kelley, today’s hearing which should have resulted in a quick decision approving the sale instead turned into a day-long evidentiary hearing with numerous parties taking the stand and testifying, and being cross examined. Court started at 9 AM and finally adjourned at 4:30 PM. A hearing for oral arguments will scheduled sometime the week after next (the week of July 16th) at a time and place to be announced. While there is little question whether the judge will eventually approve the sale to the CLA, there are questions regarding the restrictive covenants which need to be answered. Smith’s and AQF’s objections to the sale and to the scraping of the covenants provided a considerable diversion today, but ultimately I have no doubt that we’ll end up owning the dam. Patience people. We’ve been waiting 7 years for this. A few more weeks won’t hurt.

I wanted to get something posted as soon as possible because I know there are lots of people anxiously awaiting word after today’s hearing. I’ll provide additional details about today’s hearing at a later date and will post an audio transcript of today’s hearing when it becomes available.