WATERVILLE – A lawsuit over equipment in the former C.F. Hathaway plant has been set for trial but shouldn’t hinder the sale of the closed shirt factory to an Arizona developer.

The Made in the USA Foundation is suing Windsong Allegiance Apparel Group in a dispute over the equipment. A trial tentatively has been scheduled for Sept. 8 in U.S. District Court in Bangor.

Joel Joseph, head of the Washington, D.C.-based nonprofit group, said the suit had sought to force Windsong to transfer the equipment to the foundation. But the case is now about money, Joseph said.

“We’re not withdrawing the suit, but we’re not going to seek to take over the plant, we’re just going to seek compensation from Windsong,” Joseph said. “We don’t want to hold up the deal, but we want to reimburse the investors who put up money.”

The foundation had hoped to buy the plant and sell Hathaway shirts and other American-made products at a string of retail outlet stores. Windsong, which has threatened to countersue if Joseph doesn’t withdraw his lawsuit, said Joseph never came up with the money to close the deal.

“We continue to believe that there is no merit to Joel Joseph’s lawsuit and we will continue to seek sanctions against him if he proceeds with it, and possibly other actions against him,” said Windsong spokeswoman Colette Sipperly.

The city-owned building housed the nation’s last major shirt manufacturing plant. Hathaway, which closed in October, made shirts in Maine for 165 years and was known for its logo showing a man with an eye patch.

Joseph said his lawsuit shouldn’t delay the proposed sale of the plant to Arizona developer Michael Peloquin. The Waterville City Council is expected take a final vote on Feb. 4 on Peloquin’s $1 million offer.

“I’ve talked to Mr. Peloquin and I wish him all the luck in the world,” Joseph said. “As long as he keeps the plant operating, it’s fine with us.”