BOF Sues Combs, He Settles with BOZ
by July 13, 2009 12:00 am 65 views
The Bank of Fayetteville filed a lawsuit against Springdale developer Gary Combs, the Gary Combs LLC and the Electric Avenue Carwash LLC on June 6.
In the complaint filed in the Circuit Court of Washington County, the bank lists three counts seeking a total of $5.5 million in unpaid principal, plus unpaid and accrued interest on two different properties in Washington County.
The first is for a property known as Dead Horse Mountain, near Stonbridge Golf Club in Fayetteville. The bank seeks more than $5 million related to a $5.2 million mortgage made to Combs in 2006. The loan has been modified twice in that time.
In the second count, BOF seeks $526,492, plus unpaid interests and fees related to the Electric Avenue Carwash in Springdale. The complaint states a similar modification and payment history.
On May 1, Combs filed a complaint in Washington County against BOZ seeking $108 million. On June 30, Combs and Bank of the Ozarks settled a different lawsuit out of court.
Combs’ lawyer on that case, Rick Woods of Fayetteville, said he could not discuss the suit, but said that an order of dismissal had been filed.
Combs said the bank agreed to take back a total of about 720 lots at Waterford Estates near Goshen and at the Sundowner subdivision in Prairie Grove. He claimed it was valued at about $26 million.
In an e-mail from BOZ, a spokeswoman said, the settlement resulted in Combs conveying to the bank all collateral securing the related loans and Combs dismissing all claims against the bank and other defendants. In return, BOZ and other defendants agreed to release all claims.
In a prepared statement, George Gleason, chairman and CEO of BOZ said, “We are pleased to have this matter resolved and to have title to our collateral. This puts us in a position to develop and implement an effective plan for the orderly sale of these properties without the delays that would result from continued litigation.”
Combs has also filed complaints against Metropolitan National Bank of Little Rock and First Federal Bank of Harrison.