Wachovia pursues Vick on $1.3 million business loan
Charlotte Business Journal - by Will Boye Staff writer
Michael Vick is being blitzed by creditors, with Wachovia Corp. joining the list of banks demanding loan repayment from the disgraced NFL star.
The Charlotte bank has filed suit against Vick and a business partner for nearly $940,000, claiming the two have defaulted on a $1.3 million loan for a restaurant and wine store in Atlanta.
Vick invested in The Tasting Room, an upscale restaurant that opened this year, and Atlantic Wine & Spirits, an adjoining wine store in the East Point area of Atlanta.
Frank Jenkins, a retired surgeon, founded Atlantic Wine & Package in 2004 and brought Vick in as an investor for the East Point operation.
Atlantic Wine is also named as a defendant.
In its suit, Wachovia contends Atlantic Wine borrowed $1.3 million in 2006, and Jenkins and Vick both signed personal guarantees on the loan.
Both the restaurant and the wine store remain in business. But the bank says Atlantic Wine has defaulted on the loan by failing to make its monthly payments.Vick's circumstances are also a factor in the default, the suit contends.
Atlantic Wine's ability to make good on the loan and Vick's guarantee have both been "impaired" by recent events, the suit contends.
The bank seized $370,000 from Atlantic Wine's checking accounts, but the company still owed principal of $937,907, plus interest and fees of $1,876 through Oct. 2.
The interest expense on the loan continues to accrue at a rate of $201.91 per day, according to the suit. Wachovia notified Jenkins and Vick last month that the loan was in default, the bank says.
Related Industry News
Most Viewed Stories
Most Emailed Stories