A Corning printing company is facing a foreclosure lawsuit, accused of defaulting on a multimillion-dollar loan it took out in 2016.
Arkansas Capital Corp. of Little Rock filed the suit against Corning Publishing Co., saying the company owes $2.36 million as of Aug. 16. That includes the balance of the loan, late fees and charges, according to the suit, which was filed in Clay County Circuit Court on Aug. 21.
The borrowers have told Arkansas Capital Corp. that Corning Publishing has closed and are “unable to pay their obligations” on the loan, according to the suit. ACC is represented by Randal B. Frazier in the Little Rock office of Kutak Rock LLP.
Corning Publishing borrowed $3.16 million in 2016 from Arkansas Capital Corp., a nonprofit. The loan, which was guaranteed by the U.S. Small Business Administration, was modified six times.
Corning Publishing used its building as collateral and also pledged its equipment and other “general intangibles” to secure the loan.
Arkansas Capital Corp. said in the court filings that it believes Corning Publishing’s personal property is valued at $5.7 million.
The borrowers for the loan were listed as Corning Publishing and J.V. Rockwell Publishing Inc.
Thelma J. Rockwell, president and secretary of Corning Publishing, signed the loan document.
The guarantors are listed as the Jan V. Rockwell Family Trust and the Jan V. Rockwell Marital Stock Trust. The trustees of the trusts are Thelma J. Rockwell, Steven E. Rockwell and Mark D. Rockwell, but only Thelma J. Rockwell and Steven E. Rockwell are named as defendants in the foreclosure suit.
Steven Rockwell didn’t return a call seeking comment.
Corning Publishing said on its website that since 1962, it has been “helping our clients succeed in an increasingly competitive environment,” offering “the highest quality solutions for their print, fulfillment, distribution, technology, multimedia and mobile needs.”
For years, Arkansas Business Publishing Group of Little Rock used Corning Publishing to print Arkansas Business and some of its supplements. But that relationship ended with Arkansas Business’ July 3 issue.
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