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
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WEDDING- BANGOR METRO AND MAINE AHEAD PUBLICATIONS
Assigned to Councilor, �� G,—