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HomeMy WebLinkAbout2012-01-23 12-075 ORDERCOUNCIL ACTION Item No. 12 075 Date: January 23, 2012 Item/Subject: ORDER, Authorizing Termination of Security Interest in Webster Atlantic Corporation, Publisher of Maine Wedding, Bangor Metro and Maine Ahead Publications Responsible Department: Legal Commentary: On April 26, 2010 by Council Order 10-159 the City Council of the City of Bangor authorized a loan to Webster Atlantic and took a security interest in its assets including the following publications: Maine Weddings, Bangor Metro and Maine Ahead. The City's interest, as well as that of other creditors, is subordinate to the first mortgage holder, Bangor Savings Bank. The publications are for sale and a closing on Maine Weddings is scheduled for the week of January 23, 2011. The original loan was for $35,000 and the current outstanding indebtedness is $17,378.06. In order to proceed with the sale of the publications, the City has been asked to release its security interest in them. This Order, if approved, will authorize the City Manager to execute any documents and take any action necessary to terminate the City of Bangor's security in the Maine Wedding, Bangor Metro and Maine Ahead publications in return for $1,000 for each publication upon its sale, provided that, however, in the event that Maine Ahead is sold for more than $50,000 the City of Bangor shall receive an additional $1,000 for each $50,000 above the initial $50,000 realized from the sale. Manager's Comments: Associated Information: Budget Approval: Legal Approval: Introduced for Passage First Reading Referral Department Head Page _of_ City Manager Finance Director City Solicitor Assigned to Councilor Spraque 12 075 January 23, 2012 CITY OF BANGOR (TITLE.) ORDER, Authorizing Termination of Security Interest in Webster Atlantic Corporation, Publisher of Maine Wedding, Bangor Metro and Maine Ahead Publications WHEREAS, the City of Bangor has a security interest in the following publications; Maine Weddings, Bangor Metro and Maine Ahead; and WHEREAS, the City of Bangor is a junior creditor, so-called, for each publication; and WHEREAS, said publications are for sale; and WHEREAS, it is in the best interest of the City of Bangor to release its security interest in each publication as it is sold to recover some of the obligation due the City. By the City Counal of fire City of &ngor. ORDERED, THAT the City Manager of the City of Bangor is authorized to execute any documents and take any action necessary to terminate the City of Bangor's security in the Maine Wedding, Bangor Metro and Maine Ahead Publications in return for $1,000 for each publication upon its sale, provided that, however, in the event that Maine Ahead is sold for more than $50,000 the City of Bangor shall receive an additional $1,000 for each $50,000 above the initial $50,000 realized from the sale. IN CITY COUNCIL January 23, 2012 Motion Made and Seconded for Passage # �� Passed ORDER I CI CL (TITLE,)SECURITY INTEREST 1 DI 1.7ftl Y NAWA Y ;ZY w MMMt1;#.IV w (C'm 'Il: :I 1'�Z17 WEDDING- BANGOR METRO AND MAINE AHEAD PUBLICATIONS Assigned to Councilor, �� G,—