Hyundai Capital America has launched foreclosure proceedings against the owners — auto industry veteran Michael Saporito and ex-NFL linebackers Jessie Armstead and Antonio Pierce — of Hyundai and Kia dealerships in Pennsylvania accused of failing to repay vehicle floorplan loans.
Hyundai’s captive finance unit filed the mortgage foreclosure lawsuit Friday against the trio’s All Pro Airport Rd. K/HY 2, which is accused of owing millions of dollars for the construction of Hazleton Hyundai and Hazleton Kia in Hazle Township, Pa. Hyundai Capital said as of Sept. 6 that it is owed $16.2 million involving loans for vehicle floorplan, mortgages and more for the two Pennsylvania stores.
The move by Hyundai Capital follows another lawsuit it filed last month against the dealership group.
In August, Hyundai Capital and Nissan Motor Acceptance Corp. accused the ownership group and five of its dealerships in various lawsuits for selling nearly 500 vehicles out of trust — or selling a vehicle but not repaying the lender for the vehicle that had been financed in time. The Nissan lawsuits involve three Nissan stores: Hazleton Nissan in Hazle Township, All Pro Nissan of Macomb in Clinton Township, Mich., and All Pro Nissan of Dearborn in Michigan.
In the most recent mortgage foreclosure lawsuit, Hyundai Capital says it loaned the defendants $7.52 million in June 2015 for construction and a mortgage on the property. In June 2016, the construction loan was amended and increased to $9.76 million. The mortgage also was amended at that time. Hyundai Capital says in its lawsuit that the group defaulted on numerous loan agreements and has not repaid Hyundai Capital when it demanded accelerated payments in August.
A lawyer for Hyundai Capital and a Hyundai Capital spokeswoman declined to comment on Monday on the mortgage foreclosure lawsuit. A spokesman for Kia declined comment. Hyundai referred comment to Hyundai Capital.
On Aug. 31, Hyundai Capital, through a court order, removed remaining vehicles from the two dealerships, which have essentially closed.
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