09 Jun2014
Written by CFB Blogger. Posted in Blog
Concord Power and Steam, a company owned by Peter Bloomfield that was to have built a new steam plant in the South End of Concord, New Hampshire, to heat city sidewalks, has recently filed for Chapter 7 bankruptcy.
According to a news report by Megan Doyle appearing in the
Concord Monitor, the bankruptcy filing lists liabilities of nearly $5 million with zero assets. The debt includes some $3.2 million owed to
P&M Realty of Concord, which is also owned by Bloomfield. No other creditors have, to date, filed a lawsuit against Concord Power and Steam.
From the news account, “That move stays two lawsuits filed against Concord Power and Steam, alleging the company still owes more than $580,000 combined to two creditors for their work on the failed plant. But… Bloomfield… claims that money wasn’t due unless the plant actually went forward, and there’s no debt since plans for the plant died last year.”
In the article, Bloomfield avers that “’I would have just let (Concord Power and Steam) die a graceful death, except these two entities are trying to collect on it despite the fact that the project didn’t go forward. So rather than spend thousands of dollars in court to defend something that we have no money to pay them with anyway, the most simple [sic] thing was to (file bankruptcy).’”
That decision has no bearing on
Concord Steam Corp., a separate company, of which Bloomfield is also president.
Concord Steam started business in 1938. Seventy years later, Bloomfield opened Concord Power and Steam, which would have owned the South End steam plant. However, he and Mark Saltsman, Vice President of Concord Steam, struggled to find sufficient financing for the project and were unable to find enough customers to purchase the electrical power their new wood-burning plant would manufacture. By the end of last year, it was decided that the project would not be able to go forward.
In April, Methuen Construction sued Concord Power and Steam for breach of contract, “claiming it is owed more than $515,000 for work completed on plans for the steam plant. Another breach of contract lawsuit, this one filed by Wagner Business Development and Consulting out of Portsmouth, is also pending against Concord Power and Steam.”
“It was not until (Concord Power and Steam) failed to live up to the terms of the agreement with (Methuen Construction) despite receiving several time reprieves, did (Methuen Construction) find itself forced to find the pending lawsuit,” Joe Barbone, president of Methuen Construction, said in a written statement.
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