Serpentini Chevrolet owes defaults on $17million loan
04-03-2009, 06:54 PM
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Serpentini Chevrolet owes defaults on $17million loan April 2, 2009
Serpentini Chevrolet has been ordered to pay back more than $17 million in loans from KeyBank on which it had defaulted.
The March 13 judgment came in a ruling by Cuyahoga County Common Pleas Court Judge John P. O’Donnell. The dealership had access to a $19.25 million loan and has been ordered to pay $17.6 million to the bank, plus interest of 8.63% annually.
Listed as defendants are The Merrick Chevrolet Co.; Serpentini Management Co.; Robert Serpentini Jr.; Paul Serpentini and Merrick Strongsville, which is part of the Serpentini dealership group.
David Simon, the attorney listed for the dealership defendant, said he could not talk about the case.
I have no relation to any of those companies,” he said. “All I did was sign off” on the judgment.
No one from Serpentini Chevrolet returned messages left at the company’s Aurora or Strongsville stores on Thursday. A lawyer representing KeyBank also did not return a phone call seeking comment.
According to court documents, Merrick Chevrolet owed the bank $17.6 million of principal on the loan and more than $58,000 in interest. The loan had provided $15 million for new vehicles, $3.5 million for used vehicles and $750,000 for rental vehicles when the line of credit was extended in 2002.
It was made to The Merrick Chevrolet Co. and guaranteed by Serpentini Management Co.; Robert Serpentini Jr.; Paul Serpentini and Merrick Strongsville.
The terms of the loan state that KeyBank could decide at any time to discontinue advances and demand its money back. It is not clear if the bank called the loan early or if Serpentini had been behind on payments.
The dealership waived its right to appeal and to a court trial in agreeing to the terms of the loan.
PRINTED FROM: http://www.crainscleveland.com/apps/...plate=printart
Serpentini Chevrolet has been ordered to pay back more than $17 million in loans from KeyBank on which it had defaulted.
The March 13 judgment came in a ruling by Cuyahoga County Common Pleas Court Judge John P. O’Donnell. The dealership had access to a $19.25 million loan and has been ordered to pay $17.6 million to the bank, plus interest of 8.63% annually.
Listed as defendants are The Merrick Chevrolet Co.; Serpentini Management Co.; Robert Serpentini Jr.; Paul Serpentini and Merrick Strongsville, which is part of the Serpentini dealership group.
David Simon, the attorney listed for the dealership defendant, said he could not talk about the case.
I have no relation to any of those companies,” he said. “All I did was sign off” on the judgment.
No one from Serpentini Chevrolet returned messages left at the company’s Aurora or Strongsville stores on Thursday. A lawyer representing KeyBank also did not return a phone call seeking comment.
According to court documents, Merrick Chevrolet owed the bank $17.6 million of principal on the loan and more than $58,000 in interest. The loan had provided $15 million for new vehicles, $3.5 million for used vehicles and $750,000 for rental vehicles when the line of credit was extended in 2002.
It was made to The Merrick Chevrolet Co. and guaranteed by Serpentini Management Co.; Robert Serpentini Jr.; Paul Serpentini and Merrick Strongsville.
The terms of the loan state that KeyBank could decide at any time to discontinue advances and demand its money back. It is not clear if the bank called the loan early or if Serpentini had been behind on payments.
The dealership waived its right to appeal and to a court trial in agreeing to the terms of the loan.
PRINTED FROM: http://www.crainscleveland.com/apps/...plate=printart
