A pair of Bryan businesses had some of their stock confiscated by authorities Wednesday after a company they were loaned money from came to collect.
In April 2001, then under the ownership of State Representative Fred Brown and John Hildebrand, entered into a wholesale agreement with General Electric Commercial Distribution Finance, an agreement that loaned the business nearly $200,000.
"That was just the floor plan source to floor plan all the vehicles that were involved," Brown said. "At the time, it was motorcycles and Arctic Cats, four-wheelers and Indian motorcycles."
Though documents filed in court Wednesday still list Brown's San Angelo Imports as the borrower, Brown says he and Hildebrand sold their interest to Mike Smith and Matt Vivaldi, who created M&M Powersports, and that the new owners took on responsibility to pay the money back to GE.
"There hasn't been any affiliation," Brown said. "It's been their business."
In January of this year, GE sent notice that they were still owed money. When they didn't receive it, they filed for a temporary restraining order and an injunction, both granted in district court Wednesday.
According to the plaintiffs, they are now owed $884,000 under the agreement. As per the contract, GE collected on collateral Wednesday, liquidating Powersports and the M&M Auto Sales locations. Brown says he and Hildebrand are looking into the cost of buying back the business.
"We really don't know at this time," said Brown. "We just have to try and work out an agreement with the manufacturers and move on from there."
The local attorney for GE did not return phone calls.
In a statement from M&M Power Sports, the owners said they are experiencing cash flow difficulties, and are in process of negotiating a long term arrangement with their creditors. They also say Power Sports is still open for business.
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