***Aug. 4, 2022 Update: Lawsuit settled between Graham County Land Company, Flexible Funding
Tallulah – The financing company suing Graham County Land Company is asking the judge presiding over the case to issue a summary judgment against two senior officers who ran the company.
Graham County-based Graham County Land Company is a debris removal company that employs dozens of people in the region and had operations in several states.
It was sued by Flexible Funding LLC of Texas in late 2021, claiming Graham County Land Company owes it more than $17 million.
The lawsuit forced Graham County Land into receivership in October. The receiver, Alan Weiner of Focus Management Group, determined that Graham County Land Company could not continue to operate and is winding up and liquidating the company under the N.C. Commercial Receivership Act.
Flexible Funding and defendant Buck Jackson – senior vice president – entered into a settlement agreement. Defendant Cecil Patterson – who was executive vice president – is in discussions for a settlement that is expected to resolve his portion of the lawsuit, according to court papers.
Defendants Randy Jordan, who was president of Graham County Land Company and National Civil LLC, and John Pressley – partner and vice president – continue to deny liability. Flexible Funding has until Feb. 15 to add plaintiffs to the case.
Flexible Funding contends that Jordan and Pressley personally guaranteed Graham County Land Company obligations to it. The two oppose the request for summary judgment and believe they are entitled to discovery of information before the court considers disposition motions, according to court filings.
If the judge rules in favor of Jordan and Pressley, they will have until July 31 to complete their discovery.
If granted and once discovery is completed, sides in the lawsuit have agreed to go into mediation and will have 60 days to complete it.
“Counsel for the parties have discussed with their respective clients the costs of litigation and the potential cost savings that may be realized by an early mediation and the parties anticipate engaging in early mediation,” according to a case management report filed Dec. 28.
Flexible Funding is Graham County Land Company’s largest creditor and is asserting a first-priority lien to some personal property and a second priority lien to the rest.
The receiver is winding down Graham County Land Company operations and pushing for an auction of company equipment.
A proposed auction of Graham County Land Company assets “is the most viable avenue for liquidating the personal property for the benefit of the secured creditors and the best chance for plaintiff to recover any proceeds from the sale of personal property which it has a junior lien,” Flexible Funding asserted in a motion in favor of the auction.
In a Dec. 17 filing, defendants Jordan and Pressley asked that the judge deny the motion to conduct a public auction.
A lengthy list of Graham County Land Company equipment and vehicles was submitted for an assets auction, but in a response, Jordan and Pressley said titles are missing for 25 pieces of equipment, which could affect the auctioneer’s ability to sell the items.
Another 41 pieces of equipment are secured by other companies and four items were previously returned or sold. Another 32 pieces of equipment are listed as being owned by one affiliate when it fact they belong to another affiliate.
Two items are in North Dakota, whereas the auction affects Graham County Land Company and affiliate equipment in North Carolina, Florida and California.
“Insofar as Mr. Jordan and Mr. Pressley may be guarantors of debts secured by purchase-money lines on the personal property, Mr. Jordan and Mr. Pressley object generally to the sale of any such items of personal property for a price that is insufficient to pay such purchase-money liens in full,” their filing said.
They also contend that holders of the purchase-money liens have not been given proper notice about the case and an opportunity to be heard.
Jordan and Pressley said the case fails to seek authority for the receiver to sell assets of NatCiv, even though NatCiv assets are listed for auction.
They object to the receiver distributing NatCiv proceeds to Graham County Land Company creditors prior to satisfying NatCiv obligations.
One item, a black 2016 Cadillac Escalade, is owned jointly by Graham County Land Company and Jordan. The receiver has agreed to sell the half interest in the Escalade to Mill Creek, LLC, another company that Jordan owns.
The agreed price for the half interest is $21,375 and is subject to court approval.
Graham County Land Company has procured a lot behind the county’s recycling center to store all of the equipment to be auctioned off.