Business news in brief

Wednesday, January 9, 2013

— QUOTE OF THE DAY “We are not out of the woods, and further assurances are needed to provide industry

with certainty that is needed for sound

business and transportation planning beyond January.” Tom Allegretti, chief executive officer, American Waterways Operators, on the Mississippi River’s depth Article, 1D

Furniture-store foreclosure sought

Iberia Bank is seeking foreclosure on the long-vacant former Brandon House furniture store at 1100 S. University Ave. in Little Rock after what it said was failure to meet the terms of two forbearance agreements on a loan of more than $4 million.

MBC Holdings LLC, whose partners are developers Bruce Burrow of Jonesboro and Marty Belz of Memphis, are the defendants, according to documents filed Nov. 30 in Pulaski County Circuit Court.

Burrow said in a telephone interview Tuesday that he and Belz plan to countersue the bank. He alleged that the suit is “a transparent effort to get us to quickly liquidate the property ... below value.”

Burrow filed for bankruptcy protection under Chapter 11 on July 30, blaming the failure of the proposed Shoppes at North Hills as one reason. Chapter 11 allows for restructuring, as opposed to liquidation. He said Belz was not part of that filing.

MBC borrowed $4.4 million from Iberia in March 2006, two years after Brandon House was liquidated, to buy the University property and planned to convert it into an office or medical complex. The conversion never happened.

The loan was refinanced in February 2011, committing rent income from the property.

The partners entered two forbearance agreements in July 2011 to keep the lender at bay. Collateral in the agreements includes a 1991 business jet, tax increment financing district bonds for the Turtle Creek mall in Jonesboro and real estate in Colorado.

Burrow and Belz partnered in the $40 million conversion of the Excelsior Hotel in downtown Little Rock into the Peabody, and the major renovation of the Hilton hotel at Interstate 630 and University, which was being rebranded Monday as a Clarion hotel.

America’s Car-Mart Inc. of Bentonville said Tuesday that it has opened a dealership in Woodstock, Ga., its first outlet in the state and its 119th overall.

The Georgia outlet is the fifth new dealership Car-Mart has opened in its current fiscal year. The company plans to open another five before the end of the fiscal year April 30.

Car-Mart’s operations are primarily in the south-central and southeastern states. The company is the largest publicly held U.S. automotive retailer that focuses on the buy-here, pay-here segment of the used-car market.

State fraud suit targets consignees

The Arkansas attorney general’s office has sued Gary Eubanks and Edgemont Marine of Greers Ferry on Monday alleging violations of the Arkansas Deceptive Trade Practices Act.

A lawsuit filed in Pulaski County Circuit Court claims the company sold watercraft on consignment but failed to return any proceeds to the seller.

In 2007, Eubanks and Edgemont Marine began selling watercraft from its Greers Ferry location, the lawsuit said.

During this time, Edgemont began selling watercraft on consignment, typically for a 10 percent commission.

But after closing the sale, Edgemont Marine did not pay the original owners of the watercraft and had no intention to do so, the lawsuit said.

Violators of the act may be assessed a civil penalty of up to $10,000 per infringement, the lawsuit said.

Eubanks did not return a message left for him Tuesday at Edgemont Marine.

Arkansas labor director set to retire

James Salkeld will retire as director of the Arkansas Department of Labor on Jan. 18, a position he has held for 21 years, since he was appointed by Gov. Bill Clinton.

Salkeld, 65, was the longest-tenured director of the agency, according to news release. His salary is $117,307.84.

Before becoming director, Salkeld worked 17 years in the electrical trade, 10 years as a master electrician, and served on the executive board of the International Brotherhood of Electrical Workers Local 295. Subsequently, he became the assistant business manager then business manager for the local, a position he held until his 1991 appointment to the Labor Department.

The University of Arkansas System Agriculture Division will host a Jan. 30 conference that will focus on the extension of the federal farm bill, the university’s Cooperative Extension Service announced Monday.

The conference will examine the laws and regulations put into place by the bill’s extension and its effect on crop insurance, according to a release.

The workshop will be held at the Conway County Fairgrounds in Morrilton from 10 a.m. to noon.

Harrison Pittman, director of the National Agriculture Law Center, and Grant Ballard, attorney with the Banks Law Firm PLLC will give presentations at the meeting.

There is no cost to attend the conference and lunch will be provided.

Reservations and more information can be obtained by contacting Harrison Pittman at [email protected] or (479) 575-7640. - Jessica Seaman

Consumer credit outpaces forecast

Consumer credit in the U.S. increased more than forecast in November, led by borrowing for student loans and automobiles.

The $16 billion gain followed a $14.1 billion advance in October, Federal Reserve figures showed Tuesday.

With sustained gains in the labor market, reflected by December’s 155,000 increase in payrolls, and strong demand for student loans and cars, economists expect consumer credit to continue to grow in the early months of 2013.

The October increase was previously reported as $14.2 billion.

The report doesn’t track debt secured by real estate, such as home-equity lines of credit and home mortgages.

Nonrevolving debt, such as that for college tuition or auto purchases, climbed $15.2 billion in November, the most since June, after increasing $10.6 billion in October.

Business, Pages 26 on 01/09/2013