Court gives control of Big Dog property to Intrust Bank
07/30/2014 9:49 AM
08/06/2014 12:44 PM
A judge has handed the former Big Dog property at Douglas and Hydraulic to Intrust Bank, along with all of the remaining equipment and motorcycles.
Big Dog Motorcycles, which at its peak in 2004 had sales of $120 million and nearly 300 employees, went bankrupt and shut down in 2011. Big Dog founder Sheldon Coleman then started a much smaller Big Dog parts and service business, BDM Performance Products, in one of the plant’s former warehouses.
According to an Oct. 15 lawsuit filed by Intrust Bank against Coleman and several of his entities, Coleman had taken out loans totaling more than $20 million from Intrust, with most of the loans dating from 2011 or later.
All of the loans were secured by the Big Dog property and equipment. Two of the loans, worth more than $17 million, were also secured by a promise of nearly $90,000-a-month payments from Coleman’s investment entity, CD Investment Partnership, according to court documents.
Intrust, in the Oct. 15 lawsuit, sought to foreclose on the real estate and lock in Coleman’s obligation to keep making the nearly $90,000 monthly payments.
The Nov. 1 judge’s order addressed only the status of the Big Dog property. The court handed control of the real estate over to Intrust, allowing the bank to change the locks on the buildings. In the order, the two sides agree that the value of the equipment and inventory, including seven Big Dog motorcycles that long stood in the company’s display window, was $413,000. That allows the bank to secure a bond amount of $826,000.
BDP Performance Products shut down as of Nov. 1.
The order does not mention the monthly payments.
Lawyers representing Coleman and the bank said they had no comment.