PORTLAND — Bankruptcy proceedings will continue for the Williston-West Condominiums after a motion to dismiss the filing was denied Feb. 22.

The dismissal motion by Coastal Capital Realty, filed in U.S. Bankruptcy Court for the District of Maine, claimed Frank Monsour, operating as 32 Thomas Street LLC,  filed for Chapter 11 bankruptcy in bad faith hours before a scheduled Feb. 15 foreclosure auction.

Judge Michael A. Fagone refused to dismiss the case, and approved an interim motion allowing Monsour to lend money to 32 Thomas Street LLC, with the property as security, to meet business expenses. Coastal had also objected to that request.

The condominiums were built into the former Williston-West United Church of Christ, and received a certificate of occupancy from the city in December 2017. Five of the spaces are residential, and two are for business use. None have been rented or sold.

Monsour bought the church and parish hall on the city’s West End in 2011 for $658,000. Court documents show Monsour borrowed $1.4 million from Coastal in 2015, and $1.4 million from Camden National Bank in 2017.

The 2015 debt was reduced to $1 million in 2017, but when the promissory notes came due last September, 32 Thomas Street LLC owed a total of $3 million, including interest.

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