A New York City bank intends to sell "personal property" of Moise A. Banayan, owner of a kosher cheese plant in Ogdensburg and a kosher dairy plant in Lowville, to the highest bidder Wednesday.
Signature Bank filed suit in December against Ahava Food Corp., Yoni Realty LLC and Schwartz & Sons Inc., Brooklyn; Lewis County Dairy Corp., Lowville; St. Lawrence Food Corp., Ogdensburg, and Moise A. Banayan and Ana Banayan, Monsey, for being in default on several loans.
A New York County judge issued a default judgment in late March to Signature Bank totaling $9,338,104.
The property will be auctioned publicly at 10 a.m. in the law firm of Herrick & Feinstein on Park Avenue in New York City. An initial auction scheduled for late April was postponed.
Attorney David P. Antonucci of Watertown, representing Ahava Foods, said he believes the auction probably won't affect operations much at the two plants. The exact contents intended for auction weren't known, but several liens have been placed on Mr. Banayan's properties and assets.
"We are negotiating and talking with everyone," said Mr. Antonucci, noting Ahava Food in Brooklyn is no longer operating. "We are hopeful to keep the plants open long term, just not short term."
The city of Ogdensburg and St. Lawrence County Industrial Development Agency are threatening to foreclose on the kosher cheese plant if delinquent utility payments, property taxes and loans aren't paid.
The St. Lawrence Food Corp., which operates the North Country Manufacturing Inc. kosher plant at 30 Main St., owes the city about $600,000. The IDA and the city will jointly file a foreclosure notice.
The outstanding city bills include $200,000 in payments on the mortgage used to purchase the property, about $90,000 each on the 2006 and 2007 property tax bills, nearly $60,000 in fines from improper discharges to the city's wastewater treatment plant and about $160,000 for water and sewer services.
City officials met with Mr. Banayan last month to discuss the outstanding bills, learning he wanted to refinance some of his mounting debt. City leaders said of the June 26 meeting that Mr. Banayan was looking for a deal to settle the delinquent bills, but a written offer would have to be submitted for the city to review.
The IDA is owed about $335,000 on two loans totaling $500,000. Loan payments haven't been made since November.
In April, the Ogdensburg Growth Fund Development Corp. was seeking $246,623 plus more than $60,000 in interest owed by Mr. Banayan under the terms of a $350,000 Growth Fund loan made in 2004. No payments had been made on the loan since April 30, 2007.
The Ogdensburg plant employs about 60 full-time workers, according to company officials. Lewis County Dairy produces bottled milk, cheese, yogurt and ice cream, which are then sold in New York City. It employs about 50 people.
While Lewis County Dairy has an outstanding loan with the Lewis County IDA, the principal amount has been paid off, leaving only some interest and late fees, LCIDA Executive Director Ned E. Cole said.
"We have an insignificant amount as compared with other agencies and banks," Mr. Cole said. "Moise has been cooperative with us with our obligations."
He said LCIDA holds some liens on equipment, as well.
Lewis County Dairy on Route 812 also has outstanding loans with North Country Alliance and Development Authority of the North Country, Mr. Cole said, but he was uncertain of the amount.
Times staff writer Steve Virkler contributed to this report.
