Fifth Third Bank has taken legal action to repossess three corporate jets owned by companies tied to real estate development firm Newton Oldacre McDonald LLC, claiming the companies defaulted on more than $7.8 million in loans.
The bank filed its lawsuit on Monday, the same day Nashville Jet Charters Inc. filed to reorganize under Chapter 11 of the Bankruptcy Code. Last Friday, the two companies filed suit against Nashville Jet, seeking possession of the aircraft, which Nashville Jet had leased. Both cases were filed in Davidson County Chancery Court.
Fifth Third asserts that NOM Aviation LLC and McDonald Aviation LLC, which share a Green Hills corporate address with Newton Oldacre McDonald, have each failed to make payments that are due and have told the bank they does not have the funds to do so.
A third company, N50MJ LLC, is also named in the Fifth Third case and is a plaintiff in the case against Nashville Jet. The bank says it is in default on a $1.8 million note. The company shares an address with Nashville Jet; its controlling parties are unknown at this time.
According to legal filings, McDonald Aviation owns a Learjet 35A, while NOM Aviation has a Cessna Citation V Ultra and a Grumman G-1159. N50MJ LLC owns another Learjet 35A.
NOM is listed in a bankruptcy filing as the largest unsecured creditor of Nashville Jet, owed more than $672,000. The company says it owes American Express $174,000 and Brentwood-based Lifepoint Hospitals $108,000, among other debts.
Attorney Elliott Jones of Drescher & Sharp, representing Nashville Jet in its bankruptcy case, said today that he expects the bank to take possession of the aircraft on Tuesday, "barring something unforeseen." Nashville Jet has told the court it will not oppose the repo.
Attorney David Cañas of Harwell Howard Hyne Gabbert & Manner, who sued the charter jet firm on behalf of the airplane owners, could not be reached this afternoon.
A person who answered the telephone at Newton Oldacre McDonald this afternoon said the firm had no comment on the situation.
Newton Oldacre is the developer of the Nashville West shopping complex and owns retail properties in Green Hills and elsewhere.