The former owners of Yakima, Wash.-based Trail Wagons/Chinook RV have avoided legal action by making a settlement with a former creditor.
The Yakima Herald-Republic reported that Gary and Mary Lukehart agreed to pay an undisclosed amount to Ford Credit, a commercial lending division of the Ford Motor Co., said Mark Watson, a Yakima attorney representing the Dearborn, Mich., company.
Ford Credit was seeking $872,875, plus interest, for a loan that financed the purchase of truck chassis used in the company’s once-popular Chinook RVs.
The total loan was for nearly $3.7 million, but was reduced when the company received revenue from the liquidation of Trail Wagons, which shut down in August 2005.
“Everything that needed to happen for the settlement has occurred,” Watson said.
The planned settlement marks the end of the Lukeharts’ legal woes stemming from financial problems that led to closure of Trail Wagons.
Brendan Monahan, the Yakima attorney representing the Lukeharts, filed a joint notice of settlement and a request to dismiss the case Thursday.
“We expect the court will grant our request for a joint dismissal,” said Monahan.
The company, which once employed 165 workers, had several financial problems including a default on a $3.6 million bank loan last June.
In October 2005, a court gave approval for Inverness Partners of Bend, Ore., to take control of the former Trail Wagons site and LaSalle Bank purchased the property for $2.9 million in March 2006.