Brought to you by WBIW News and Network Indiana
Last updated on Saturday, June 30, 2012
(BLOOMFIELD) - A Jasonville area coal mining company has been named in a more than $1 million civil suit filed in Greene Circuit Court by an Indianapolis firm that supplied it with a variety of equipment.
Nick Schneider, of the Greene County Daily World reports, the suit filed by MacAllister Machinery Company, Inc., on Thursday, names Lily Group, Inc., P. Rick Risinger, VHGI Coal, Inc., VHGI Holding, Inc., Plantium Partners Credit Opportunities Master Fund LP, Custom Engineering, Inc., Hendrix Electric, Inc., One Source Equipment Rentals LLC, Kerko, Inc., Simplexgrinnell LP, Baifour Beatty Rail, Inc., Bell Tech Industrial Inc., the Greene County treasurer and the Greene County assessor as defendants.
Lily Group, Inc., based in Sullivan, formerly operated Landree Mine, located on County Road 700N, near Jasonville, when MacAllister extended the firm a line of credit in 2011 that allowed them to rent equipment and obtained other goods and services that were used in the construction of the coal mine operation, according to the compliant filed with the court.
Under terms of the credit agreement, Lily Group was to pay all charges owed as they became due on a net 30-day basis together with interest on any unpaid amounts.
The mine's principal, P. Rick Risinger, signed a personal guaranty note in which he agreed to be personally responsible for all sums owned to MacAllister.
According to the suit, MacAllister provided various items of construction equipment used to improve the mine site.
The current amount due at the time of the filing was $1,019,035.09.
"Lily is insolvent, cannot pay its debts as they become due, has refused despite demand to pay the obligations owed to MacAllister and is intending to convey or has conveyed its assets and the mining operations to others -- VGHI Coal and VHGI Holdings, Inc.," according to the suit.
In January, VHGI Holdings, Inc., announced it had entered into a stock purchase agreement to buy the Greene County coal mine operation.
Risinger, the sole shareholder of old Lily Group, is continuing to serve as president of VHGI Coal.
Prior to the execution of the stock purchase agreement, VHGI Coal had loaned more than $5.5 million to Lily Group to fund its operations and expansion.
The firm has about 1,400 acres that it owns the mineral rights to and another 1,400 that it has leased the mineral rights. The company owns about 20 actual acres where the mining operation is based.
The company plans to extract more than 21 million salable tons of coal on-site while using VHGI company's cash flow to acquire and develop other coal opportunities in Greene County and other locations.
VHGI Holdings, based in Fort Worth, Texas, has interests in the energy and mining markets as well as precious metals and healthcare technology industries.
The suit, a complaint to foreclose a mechanics lien, asks the court to appoint a receiver who will oversee the collection and liquidation of all of Lily's assets -- including the mine and real estate.
The suit, filed on behalf of MacAllister by Jacob Atz of the Bloomfield law firm of Hartman and Paddock and Indianapolis attorney John G. Deckard, also:
* Seeks a judgment against Lily Group and Risinger amounting to $1,019,035.09 together with interest at the rate of 18 percent, attorney fees; and costs.
* Seeks a judgment against VHGI Coal and VHGI Holdings -- holding them jointly liable for the obligations owed to MacAllister.
* Asked the court to order the Greene County Sheriff to sell the real estate at auction.
No hearing date has been set by the court.
1340 AM WBIW welcomes comments and suggestions by calling 812.277.1340 during normal business hours or by email at email@example.com
© Ad-Venture Media, Inc. All Rights Reserved.
Click here to go back to previous page