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VEAZIE – The assets of a local concrete company were seized Thursday morning by Bangor Savings Bank in an attempt to recover approximately $5 million the company owes the bank, according to bank Senior Vice President Yellow Light Breen.
Bangor Savings Bank filed legal documents of default Wednesday afternoon against Gagne Precast Concrete Products Inc. in Penobscot County Superior Court in Bangor. There are other court proceedings and an ongoing police investigation involving the company.
“This morning, we went out and took physical possession of the assets,” Breen said. “Generally this is a very rare situation for the bank to have to be in.”
Breen added that the institution typically works with its customers as long as possible, but it has become necessary for the bank to be aggressive in trying to regain its losses.
The yellow gate at the plant entrance was closed Thursday morning, and although a sale flag still was flying from Gagne’s business sign near the road, the facility obviously was closed to patrons.
Breen said they already have changed the locks on the doors and gates at the site.
“We’re seeking to recoup as much debt as possible,” he said. “There are actually several different loans made at different times.”
Stephen Thomas, listed as Gagne Precast president, signed for the loans from Bangor Savings but could not be reached Thursday for comment.
Employees were informed of the proceedings this morning, but a few were asked to help sort through paperwork and inventory. The exact number of employees couldn’t be determined Thursday, but there were somewhere between 15 and 25 people working at the company.
“At their peak of business, they used to have 50-plus employees, but I’ve been told that has been greatly reduced,” Town Manager Bill Reed said.
According to its Web site, Gagne Precast was established in 1981 and “has evolved into one of the state of Maine’s largest producers of precast concrete products.”
The company specialized in manufacturing a variety of construction items, such as manholes, catch basins, underground utility vaults and septic tanks.
A statement on the company’s Web site reads: “This Web site is undergoing major reconstruction to reflect our new sales focus for the 2008 construction season. Gagne Precast will no longer be offering most general construction supplies, including masonry supplies such as brick and concrete block.”
In addition to Bangor Savings seeking money owed on three promissory notes issued to the company, the first dating back to December 2006, others have filed court documents requesting money that they’re owed by Gagne.
One of those suits was filed by Gagne & Son Concrete Blocks Inc., which owned the company before it became Gagne Precast Concrete Products, and is asking for more than $59,000 for product sold and delivered.
Police are investigating possible credit problems involving the company, Veazie police Officer Paul Haslam said Thursday. He couldn’t elaborate on potential charges, but was working on the case Thursday morning.
As for the town, it already has received property tax payment from Gagne for the two parcels owned by the company, but Veazie Tax Collector and Treasurer Julie Reed said one of those bills was paid late.
The main plant location is valued at $626,500, the smaller 5-acre lot is assessed at $4,700.
“They’ve already paid their taxes this year,” Town Manager Reed said. “The issue is, people being unemployed is always a concern because they employ a lot of local people.”
adolloff@bangordailynews.net
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