A local luxury car dealership is being sued for failing to repay a loan, according to a lawsuit filed last week by Bank Star One.
The lawsuit alleges Woods Auto Gallery breached the terms of a financing agreement and now owes the bank nearly $1.8 million and about $13,500 in interest.
Gregg Woods, owner of the dealership at 124 E. Nifong, and Angela Woods, his wife and the secretary of the company, signed the agreement with the bank in September 2006. According to the contract, the bank agreed to loan the dealership money to purchase new and used cars, and the dealership was to pay back the loans within two business days of the cars being sold.
After entering into the contract, the lawsuit says, Woods Auto Gallery sold 20 cars. But the defendants used the proceeds of those sales for themselves rather than paying the bank back, according to the lawsuit.
The lawsuit alleges the dealership, which specializes in luxury cars such as Mercedes Benzes and Jaguars, stopped making debt payments in March 2007.
Bank Star One posted a $3.6 million bond to seize the inventory, documents filed in the lawsuit show. The plaintiffs also obtained a court order allowing the bank to seize property before the court rules on the case.
Skip Walther, the attorney representing Bank Star One, would not specify how many vehicles, if any, had been seized.
Reached on his cell phone Friday and again on Monday, Woods declined to comment and hung up. In both instances, he said he was with a customer.