Developer, MNB Battle Over Pinnacle Point

Bill Schwyhart, principal of Pinnacle Point Properties LLC, filed a complaint against Metropolitan National Bank on Dec. 4 seeking $20 million in damages.

The lawsuit filed in Benton County Circuit Court claims MNB breached its loan agreement concerning 10 buildings located on 22 acres in Pinnacle Point in Rogers.

The plaintiffs claim they have been working with the bank since June to sell the Pinnacle Hills property to Sterling Partners LLC and LCG Global Assets Limited for a purchase price of more than $95 million.

The suit claims that the parties agreed that if the sale did not occur before Nov. 30, Schwyhart would prepare a proposal to address the loan terms and interest rates in the interim. Pinnacle Properties was seeking to restructure its loan with MNB to reflect lower market interest rates.

The bank refused to restructure the loan, according to the suit, and on Nov. 24 demanded full payment on the loan in the amount of $34.95 million due on Dec. 15.

The bank also advised Pinnacle’s management company that it was revoking its right to collect rents and stated that any rents collected would be turned over to the bank.

“The collection actions by MNB were in direct violation of the terms and conditions” of the loan agreement, the suit states.

The suit also claims MNB interfered with Pinnacle’s business relationships.

MNB answered with a foreclosure complaint on Dec.7, seeking a $35 million judgment against the defendants, with continuing interest at the rate of $9,411 per day from Dec. 6.

MNB claims Pinnacle Properties has ignored demands to pay the unpaid loan balance of $35.05 million, in addition to $811,334 in past due real estate taxes for 2007 and 2008. 

MNB is requesting that the court appoint a receiver to manage and run the Pinnacle Point properties and appoint a commissioner to sell the property.