Agracat Bankruptcy Riles Investment Firm

A Springdale investment company, AFS-NWA LLC, that’s owned by trucking and development mogul J.B. Hunt is trying to intervene in the Chapter 11 bankruptcy filed by Agracat Inc. on March 15. Agracat is the foreign-made tractor and ATV distributor that from its 2000 inception until December was based in Farmington. According to court records, it moved on Dec. 23 to 2737 N. Thompson Ave. in Springdale — property apparently owned by AFS-NWA.

The move, records say, was the result of a verbal agreement between the firms by which Agracat agreed to pay $5,000 in monthly rent.

AFS-NWA, managed by Charlie Goforth, entered into a “facilitations and sales agreement” with Agracat in November 2003 that, according to court records, was designed to help Agracat “secure credit facilities” up to $3 million. In exchange, it appears, Hunt’s company would get 10 percent of all gross sales for a minimum of three years.

Another provision states that even after the contract was completed Agracat would pay residuals totaling $150 for every tractor and skid loader Agracat sold and $25 per ATV, piece of lawn equipment and other imports.

On March 12, Goforth sent a letter to Agracat that gave the firm 10 days notice that would terminate the “facilitations and sales agreement.” Three days later, the bankruptcy was filed.

AFS-NWA filed an eight-page motion on March 29 for relief to cut in line ahead of other creditors based on its previous agreement. AFS-NWA claims it’s owed more than $700,000 by Agracat. The motion also requests that the court help it kick Agracat off its property.