Bank sues defunct Associated Grocers of Maine

10:47 AM, Sep 6, 2013   |    comments
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AUGUSTA, Maine (AP) - The Bank of Maine has filed a lawsuit against former executives of the defunct Associated Grocers of Maine seeking to recoup $2.5 million in losses.

In the latest complaint filed Kennebec County Superior Court, Gardiner-based Bank of Maine seeks "to recover damages caused by negligent misrepresentations made to the bank by AGME and the other defendants." Seventeen defendants are named.

The lawsuit says the bank loaned millions to the cooperative, which in turn gave the bank a security interest in assets of Associated Grocers of Maine, including its accounts receivable.

The AGME closed in April 2011 in deep debt.

One defendant, Craig Burgess of Bath, a former chief executive officer and former director of AGME, tells the Kennebec Journal  he was unaware of the lawsuit and had no comment.

(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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