DANFORTH, Maine — The East Grand Lake fishing camp Rideout’s Lodge and Cabins plans to open for the season on May 1, 2016 after filing for Chapter 11 bankruptcy in order to prevent an auction of the property.
Jim Brown, who owns Rideout’s, wrote in an email that the bankruptcy filing Wednesday was “reluctantly done” to prevent an auction scheduled for March 3 and retain the property while Rideouts LLC refinances its mortgage with another lender.
The company listed among its secured debt $641,600 remaining on the mortgage owed to Loon Associates Inc. Loon sold the property to Brown in 2012 and received a mortgage note for $665,000, according to property records.
“I had to take ‘evasive action’ as the replacement lender simply could not close the refinance loan in time to pay off the current mortgagee prior to the auction date,” Brown wrote. “I anticipate that Loon will be paid in full in the immediate future.”
