Biddeford Textile’s creditors seek audit

BIDDEFORD – Hundreds of Biddeford Textile’s creditors want an independent auditor to review the company’s books, a move that could delay the $5.8 million acquisition of the bankrupt blanket maker.

A group of unsecured creditors in Biddeford Textile’s Chapter 11 bankruptcy case filed a motion Tuesday saying the firm has not provided enough information about its accounting relationship with Microlife Corp.

Microlife, the majority partner in a joint venture to acquire Biddeford Textile, supplies electric blanket parts and buys blankets from the company.

Leonard Gulino, the lawyer representing Biddeford Textile’s creditors, said it is unclear how much money the two companies owe each other.

An independent audit is needed to determine whether the partnership’s offer is fair to creditors, he added.

A group called Biddeford Acquisitions, which includes Portland businessman Michael Liberty, wants to buy the assets of Biddeford Textile, pay its 200 employees $300,000 in back wages and keep the company operating in Biddeford.

The joint venture has set April as its target date for taking over the company.

The unsecured creditors are owed about $4 million. Their motion will be heard Wednesday in U.S. Bankruptcy Court in Portland by Judge James B. Haines Jr.

Gulino said Biddeford Textile has agreed that an independent accountant might be needed because the blanket manufacturer has been involved in a number of unusual transactions and complicated accounting procedures.

He added that creditors want an examiner appointed by the court, not an accountant hired by Biddeford Textile.

George Marcus, the lawyer representing Biddeford Textile, said Tuesday that he had not read the motion and declined comment.