Investment board seeks to take business' collateral

By Melody Dareing | Jun 18, 2014

CHARLESTON - A corporate public body of Kanawha County is suing a business for its equipment and money owed on an allegedly defaulted loan.

West Virginia Jobs Investment Trust Board filed a lawsuit May 20 in Kanawha Circuit Court against Winter Burn L.L.C., citing breach of contract.

The lawsuit states Winter Burn executed a promissory note with WVJITB in April 2011 for $184,062.70, payable to WVJITB and Mountaineer Capital L.P. The company was scheduled to make 72 payments beginning Oct. 14, 2011, with a final payment of all remaining principal and interest due Sept. 14, 2017, according to the complaint.

The company secured the note by granting WVJITB security interest in equipment, inventory, tools, machinery and office furniture, according to the complaint.

WVJITB and its attorney issued a notice of default and right to cure letter to Winter Burn on March 5, the complaint states. The default was not cured and WVJITB states Winter Burn owes it a total of $111,940.38, including the remaining amount on the loan plus unpaid interest, the complaint states. WVJITB also claims it is entitled to $2,301.42 in attorney’s fees.

WVJITB is seeking the court to hold a pre-judgment hearing to determine WVJITB’s right to immediately take possession of the items held as security in the collateral and issuing an injunction preventing Winter Burn from withholding collateral items from WVJITB, according to the complaint. It also wants the court to force Winter Burn to pay the balance owed, plus court costs.

WVJITB is being represented by Angela D. Herdman of Spilman Thomas & Battle of Charleston. The case has been assigned to Circuit Judge Carrie L. Webster.

Kanawha Circuit Court Case No. 14-C-1014

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