A New York-based lender has filed a federal lawsuit against Bristol Development Group, alleging non-payment of a $3 million promissory note.
Sandton Capital claims Bristol owes $2,999,458.34 plus interest, charges and fees on a $3 million note originally secured from Tennessee Commerce Bank.
When the FDIC put TCB into receivership Aug. 9, the promissory note — secured against all assets of BDG and personally guaranteed by Bristol principals Ashlyn Hines, Samuel Yeager and Charles Danie — was transferred to Sandton.
That note matured just eight days before after the FDIC assigned the note to Sandton in the wake of TCB's January 2011 failure. Sandton claims Bristol has yet to make any significant payment on the note.
Sandton alleges it made a demand for payment Nov. 14 and to which BDG did not respond. The company filed suit Dec. 4.
Sandton is represented by Ronald G. Steen Jr. of Stites & Harbison.
Requests for comment from Bristol were not returned.