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An Elkhart court this week granted a bank’s request to assume control of a building whose tenant had allegedly fallen behind on mortgage and utility payments and faced disconnection during dangerously cold temperatures.
According to documents filed in the Elkhart Circuit Court, Bristol-based Bravo Trailers, LLC, asked First State Bank of Middlebury, its mortgage lender, to allow the company to use its accounts receivable to pay outstanding bills – which totaled more than $40,000 – before a utility company turned off its heat.
However, since the company had allegedly fallen behind on its mortgage payments, anything in its accounts receivable was owed to the bank to make up for missed payments.
The bank declined the company’s request, instead asking the court allow it to temporarily access the property to “protect and preserve its collateral” and conduct emergency winterization to prevent potential freeze damage such as burst pipes, flooding and mold, ahead of a potential utility shut-off on Feb. 2.
The Indiana Lawyer called Bravo Trailers, but was told no officers were in the office to provide a statement. Citing conversations with employees, WSBT-TV Channel 22 in Mishawaka reported Wednesday that, in the wake of the court’s decision, the company closed its doors, permanently laying off 118 employees.
Wednesday’s court order comes amid Bravo Trailers’ rising dues owed to the bank, which has a pending lawsuit against Bravo and C.R. 8 Real Estate I, LLC, and Mitchell Bender, an Illinois resident and owner of both companies.
The bank alleges the companies defaulted on their mortgage payment and allowed insurance to lapse.
Neither Bravo Trailers, C.R. 8 nor Bender has filed a response to the bank’s complaint.
According to court documents, Bravo Trailers and C.R. 8 have taken out several loans with the bank since 2020, including a mortgage.
In an amended complaint filed Wednesday, the bank alleges the companies defaulted on mortgage payments and failed to pay off several other loan balances. The bank is now requesting the court foreclose the mortgage and order Bravo Trailers, C.R. 8 and Bender to pay nearly $8 million in summary judgment.
A hearing has been scheduled for Feb. 6.
The case is First State Bank of Middlebury v. Mitchell Bender, C.R. 8 Real Estate I, LLC, Bravo Trailers, LLC, et al, 20C01-2512-PL-000226.
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