Next Generation Files Suit Against Bio Based

Next Generation Financial Services LLC of Joplin, Mo., filed a $4.4 million breach-of-contract suit Sept. 10 against Bio Based Chemicals LLC of Rogers for allegedly failing to make a loan payment.

The lawsuit, filed in Benton County Circuit Court, claims NGFS has the right to repossess intellectual property and office contents (including a coffee maker and vacuum cleaner) from BBC because of the loan default.

The suit didn’t mention the amount of the payment that was allegedly missed because it was an “interest only” agreement, said Tom Stockland, attorney for BBC.

Stockland calls the suit a “big bunch of nothing” because the deal is actually just a “clean transfer of assets” from BBC to NGFS. NGFS will still own BBC, but the insulation part of the company will become a separate entity from the research portion of the firm. Furthermore, the investors in BBC and NGFS will remain the same.

Trey Trumbo of Rogers is listed as the managing member of BBC and as the co-manager of NGFS. Trumbo, along with Mike Muccio is a managing member of Next Generation Industries Inc., which owns NGFS. Investors in NGI are Ben Israel, J.B. Hunt, Phil Phillips and Tom Muccio.