A small business investment company here is seeking to gain control over assets of a Christian magazine publisher who failed to make loan payments since last June.
Capital Across America (CXA), a Delaware limited partnership with headquarters in Nashville, has filed a complaint this week in the Davidson County Chancery Court, seeking judgment against Shaun E. Helton, president and publisher of VoxCorp Inc. and several other entities he controls.
VoxCorp publishes Christian periodicals including ChristianBride, 7ball, Release, Profile, and Echo Magazine.
CXA maintains that it provided financing to VoxCorp. Through corporate representatives R. Scott Henson and Helton, VoxCorp delivered a non-revolving $500,000 promissory note to CXA in September 1999 and agreed to make 60 interest payments followed by one payment of principal and accrued interest. Under the security agreement, CXA received "absolute and unconditional security interest in the original personal property collateral" until VoxCorp paid down the loan. In April 2000, VoxCorp asked CXA to increase the loan amount to $750,000. Five months later, the companies agreed to increase the loan to $1,200,000.
VoxCorp, along with its subsidiaries Causeway and Bridge, delivered several promissory notes and payment guarantees to CXA.
After numerous transactions and contract amending agreements, CXA sent two letters to VoxCorp in July 2001, saying that it was in default under the terms of its loan agreement with CXA.
According to the complaint, VoxCorp, among other things, failed to make interest and insurance payments, and didn’t pay certain payroll taxes. The publishing company allegedly refused to present financial reports and details of its business plan to CXA.
The plaintiff maintains that Helton misappropriated VoxCorp's assets and sold the company inventory for personal use.
CXA is asking the court to authorize sale of VoxCorp’s remaining assets and require the defendants to pay other liabilities.
Judy Cannon, former vice president and advertising manager for VoxCorp, told NashvillePost.com that Helton allowed the matter to go to court because CXA’s actions “looked suspicious” to him. Helton did not return calls placed by NashvillePost.com by the time this article was published.
Cannon said VoxCorp continues publishing all of its magazines, while the company undergoes several changes.
Gregory Cashion and Joe Welborn of Smith & Cashion, a law firm here, are handling the case on behalf of CXA. Welborn said he could not comment on the case at this time. CXA President Christopher Brown did not return calls.
POSTDATA: WARRANTY DEEDS