facebook
twitter
rss
account
search
search
 

Complaint filed in Mackinac ferry line dispute

May 12, 2013 at 1:00 PM   |   Comments

MACKINAC CITY, Mich., May 12 (UPI) -- A private equity firm filed a lawsuit seeking to have a company that operates ferries to Michigan's Mackinac Island placed under court receivership.

Walden Ventures contended in federal court that Arnold Transit had defaulted on a $3 million loan and its 11 boats, which carry passengers to and from the tourist destination, should be seized.

The 41-page complaint also alleges Arnold sold some prime waterfront property on the island and also took out a $40 million mortgage without informing California-based Walden.

"Because the debtors aren't making required loan payments and are selling collateral without Walden's knowledge, Walden is at risk of not being repaid," the complaint said.

Arnold is the oldest ferry line serving Mackinac Island, which is only reachable by boat and does not allow cars on its streets.

Jim Wynn, the principal owner of Arnold, told the Detroit Free Press the funds from the property sale were safely in an escrow account and dismissed the lawsuit as the result of bickering within the ranks of Walden's financial sources. Wynn added the dispute would not affect ferry service to the island as the summer tourism season picks up steam.

© 2013 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Recommended UPI Stories
Featured UPI Collection
trending
Notable deaths of 2014 [PHOTOS]

Notable deaths of 2014 [PHOTOS]

Most Popular
1
Poll: Voters don't like Republicans but will vote for them Poll: Voters don't like Republicans but will vote for them
2
Playboy Magazine names UPenn top party school for 2014 Playboy Magazine names UPenn top party school for 2014
3
Texas woman set for execution for starving girlfriend's son Texas woman set for execution for starving girlfriend's son
4
Occupy Wall Street celebrates 3-year anniversary by forgiving $4 million of student debt Occupy Wall Street celebrates 3-year anniversary by forgiving $4 million of student debt
5
Peshmerga forces kill senior Islamic State commander Peshmerga forces kill senior Islamic State commander
Trending News
Video
x
Feedback