Posted 6/2/2014 12:00 am
Simmons First National Corp. of Pine Bluff has filed suit against a local manufacturer for some unpaid loans.
According to the suit, filed in Pulaski County Circuit Court, the defendant is O.D. Funk Manufacturing Inc., a company that builds outdoor metal buildings like storage sheds and carports.
In 1997, Funk took out a mortgage of $350,089 from what was then known as Metropolitan National Bank, securing it with Funk’s own property at 300 Trammel Road. A second mortgage was taken out on the property in 2008.
Over the years, the loan was extended multiple times until it reached a final maturity date of April 18, 2013.
According to the suit, Funk defaulted on the loan at that time, still owing $337,638 in principal and $19,314 in interest.
The company also took out a second loan in 2003 of $744,250 to be paid by July 9, 2013. That loan has also been defaulted on with Funk owing $237,505 in principal and $16,764 in interest, as well as $1,887 in late fees.
Simmons, which acquired Metropolitan in November, is demanding a foreclosure on Funk’s property in order to pay off the loans.
The suit also noted that the Arkansas Department of Finance & Administration may lay claim to $1,339 of the damages due to an unpaid tax lien on the property.
Owner O.D. Funk himself told Whispers that his business has been having trouble since 2008, when the Great Recession hit manufacturing and construction companies particularly hard.
“We’re struggling, but we’re struggling forward,” he said.