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More Geppi money woes

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The Baltimore City Paper has news of another debt against Diamond owner Steve Geppi,, this time a $600K loan from Camden National Bank in Maine, used for a controversial land purchase in Maine. This debt is related to a previously reported $16 million debt to PNC bank, which, according to a story in the Bangor Daily News, is the unpaid mortgage on the Maine property purchased by Geppi and partner Walter Skayhan. Property use included converting a closed mill into luxury condos (above):

The action is a response to an emergency motion filed March 19 by an attorney for PNC Bank of Pittsburgh, Pa. That bank holds a large mortgage — including $14.7 million in unpaid principal — on the properties. According to the bank, Maine Investment Properties and the limited liability companies are in default of the mortgage.

In 2005, Maine Investment Properties purchased from credit card lender MBNA several properties in Rockland, Camden, Belfast and Northport that were assessed at $50 million.

Company partners Walter Skayhan and Steve Geppi converted part of the sprawling former textile mill in Camden into 30 luxury condos. The company also donated one property, the Camden Area Christian Food Pantry on Mount Battie Street, to that charitable organization in 2007.

Two and a half years ago, firm vice president Brett Cohen called the Knox Mill complex “a true success story” in an interview with the Bangor Daily News.


As our previous story reported, Geppi has several other outstanding personal debts which are unrelated to Diamond, and other local investments, including his Entertainment Museum and the Baltimore Orioles, continue to struggle in the ongoing tough economy.

First link via Kevin Melrose.

  1. My guess is that DC would exercise its “buy” option on Diamond rather than let it go under. Not sure what that would mean for other publishers though, either in terms of Diamond still carrying them or them wanting to be carried by a competition-owned distributor.

  2. It would be like going back to the 60’s with Marvel distributed by DC. Maybe DC could tell Marvel they’ll only distribute 10 titles for them.

  3. One thing to keep in mind is that Geppi’s personal financial issues are separate from Diamond, which is incorporated and protected against such things. But that doesn’t mean there aren’t fair questions. We don’t know, for example, if Geppi has used all or part of his stake in Diamond as collateral for any other investments. And, of course, we don’t know if Geppi’s other financial issues are so constraining that he’ll be forced to monetize his Diamond holdings as a means of making himself whole against his other liens.

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