Former Pinnacle Partners Wrangle Over Plane Notes

Benton County judges will be busy this year dealing with legal wranglings between former partners over 19 aircraft valued at about $106 million.

There are at least five separate suits filed in Benton County dealing with the aircraft and who is responsible for the notes attached to them.

The players are: Johnelle Hunt and partner Tim Graham of the Pinnacle Group, who were former partners with Bill Schwyhart and Robert Thornton of the more recently formed Pinnacle Enterprises.

All were formerly partners in Pinnacle Air, a business-class private jet service based in Springdale.

Enter John Calamos, a Chicago billionaire, who in late 2007 allegedly stepped in and offered to partner with Pinnacle Air, obtain new financing and boost the new company (Aspen Jetride) with an extensive client list.

Perhaps needless to say, things didn’t go according to plan. Here’s a snapshot of the way some of the suits stand:

• Hunt, through her J.B. Hunt LLC, purchased the notes on two Lear 60 jets from Fifth Third Bank (she had been a guarantor on the notes to the bank), then filed a complaint against Schwyhart and Thornton to enforce their portion of the guaranties.

The aircraft were sold in November for a combined $5.14 million. 

On February 25, Circuit Judge Doug Schrantz ruled a deficiency judgment against each defendant for $2.71 million.

On March 31, Schwyhart told the Business Journal his team had filed an appeal; as of April 1, an appeal had not been filed, according to the Benton County Circuit Clerk, however a Notice of Appeal had been filed.

General Electric Capital Corp. filed a complaint pending against Schwyhart and Thornton for two other Lears. On October 19, Judge Schrantz ruled a partial summary judgment against the men, but noted the “Court requires additional evidence as to the amounts which are due …”

A bench trial is scheduled for April 15.

Suntrust Equipment Financing & Lease Corp. filed a complaint against Schwyhart and Thornton over a Dassault-Brevet Falcon 50.

In January, an independent appraiser valued the aircraft at $3.84 million. In February, Suntrust filed a motion for the approval of a sale for $3.8 million to Skywalker Jets LLC. On March 4, Judge Schrantz approved the sale of collateral.

A hearing on damages is set for April 20.

• J.B. Hunt LLC and Graham Holdings LLC have a complaint pending against Calamos, Schwyhart and Thornton et al.

• On Nov. 17, 2008, Schwyhart and Thornton filed a cross-complaint against Calamos, claiming breach of contract, fraud and fraudulent inducement.

According to the investment agreement signed Dec. 5, 2007, Calamos was to pay Schwyhart and Thornton $7.5 million for Pinnacle-Jetride, and they would use part of that money to purchase the post-bankruptcy assets of AEX (Calamos’ air charter company).

Calamos was then, as majority owner, to use his considerable wealth to arrange refinancing for the debt on 19 planes.

Hunt and Graham were to be relieved of their obligations, and Thornton and Schwyhart were to be liable for no more than $15 million.

Schwyhart and Thornton allege Calamos stopped them from consummating the required refinancing, and that he always intended to defraud them by getting them to save AEX while he did nothing to assume debt held by Pinnacle-Jetride.

The counter-claim is set for an October jury trial in Benton County.

Other suits are filed in various places across the U.S. on the other aircraft.