The owner of the former Forster Mill in Wilton, who is being sued by the town to tear the building down, has filed for personal bankruptcy.

The town filed a suit against property owner Adam Mack, of Portland, in August 2013 in an attempt to force the demolition of the large industrial building in the heart of downtown, which the select board has called dangerous and unsightly.

The town and Mack have been meeting with a mediator in an attempt to settle the dispute, but canceled their latest mediation date after learning about the bankruptcy filing, Town Manager Rhonda Irish said Thursday. The filing was made Dec. 9.

Wilton’s attorney, Michael Hodgins, said Mack has filed for personal bankruptcy protection, but noted that he does not personally own the Forster Mill building. The mill is owned by a limited liability company, Wilton Recycling, that is 100 percent owned by Mack. A limited liability corporation can protect individuals from personal responsibility for the corporation’s debts.

The filing lists Wilton Recycling with an estimated value of $110,500 and “subject to environmental issues” in reference to asbestos found on the property that has since been mostly removed.

A previous effort to demolish the building in 2011 was stopped after workers reported improper asbestos removal. While cleaning up the remaining mess, an asbestos removal expert called it the worst asbestos site he has seen in Maine in 30 years.

Mack’s filing also states that Wilton Recycling owes $170,000 to a Westbrook asbestos abatement company. The corporation also owes the town $6,000 in property taxes on the mill, according to the filing.

The case was filed under Chapter 7 of the federal bankruptcy code and claims that Mack has $292,000 in assets and about $1.8 million in liabilities. In a Chapter 7 bankruptcy, much of a debtor’s assets are sold off and proceeds are used to make payments to creditors.

Mack’s filing also includes a debt of $384,000 owed to the U.S. Attorney as restitution ordered after Mack’s 2012 conviction for misusing federal funds.

The suit seeking to force demolition of the building is still pending in Franklin County Superior Court. The parties have until Feb. 1 to finish exchanging information on evidence to be introduced and witnesses to be called to testify if the case goes to trial.

Hodgins said the mediation sessions are confidential, but said the meetings failed to produce an agreement and the case could go to trial. The town’s objective in the case is to have Mack either tear the building down or allow the town to raze it.

Mack previously proposed selling metal salvaged from the building to pay for the demolition, which he estimated would cost $250,000 to $350,000. A consultant for the town, however, said all valuable metal had been stripped from the structure during the botched demolition effort in 2011.

Kaitlin Schroeder — 861-9252

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