Judge blocks merger plans of Bank of New England

BOSTON — A Plymouth Superior Court Judge blocked a proposed merger of Bank of New England’s flagship Boston bank and Bank of New England-West, its Springfield subsidiary.

Judge David M. Roseman ruled in favor of an injunction Friday for 16 investors who claim that Bank of New England owes them $10.5 million.

The investors were stockholders of Charter Bank, which merged with Conifer-Essex in 1984 despite a challenge by the investors. Conifer-Essex was then acquired by Bank of New England in 1986.

Under state law, the stockholders were entitled to be paid for their stock in Charter Bank, but the matter went to court when the parties could not agree on a settlement, the Boston Globe reported in Saturday’s editions.

In April, a judge ordered Bank of New England to pay the stockholders $101.75 per share, with interest compounded at 12 percent annually. The bank has appealed the ruling.

Bank of New England Corp. announced on Tuesday plans to merger Bank of New England, N.A., based in Boston, and Bank of New England-West as part of its continued restructuring plans.

Attorney Joel A. Kozol, who represents the stockholders, said his clients did not want to interfere with the troubled institution’s restructuring.

“All we seek is security for the judgement awarded us by the court,” Kozol said of the April ruling.

“My clients are very pleased with this order,” Kozol said Friday. “They hope they can receive the money that they have been waiting for since 1984, which is the fair value of their Charter Bank stock.”