Associated Bank has filed a breach of contract complaint against NiteLites of St. Louis and six individuals, alleging it was not paid money it was due under a promissory note.
NiteLites executed a promissory note on Feb. 22, 2007, for $118,500 payable to Associated Bank, according to the complaint filed Feb. 26 in St. Clair County Circuit Court.
Also on Feb. 22, 2007, Michael Swindell, Harriett Swindell, Ryan Cox, Angela Cox, Matthew Biason and Sarah Biason agreed to be guarantors, the suit states.
"Under the terms of the Note, NiteLites agreed to pay the interest-only loan by making monthly payments of interest and one payment of all outstanding principal plus all unpaid interest on the maturity date of the Note, February 22, 2008," the suit states.
When the money was due, though, NiteLites entered into an extension agreement modifying the maturity date of the loan from Feb. 22, 2008, to June 22, 2008, Associated Bank alleges.
Again on Sept. 26, NiteLites entered into a second extension agreement modifying the maturity date to Oct. 22, according to the complaint.
However, NiteLites failed to pay the money in time, and on Dec. 4, Associated Bank provided the company with a notice of default and made demand for the payment, the suit states.
After receiving the notice, NiteLites paid $25,000 to Associated Bank on Jan. 9, but has failed to make any payments since, Associated Bank alleges.
"As of February 2, 2009, NiteLites is indebted to Associated Bank in the amount of $79,811.40 including principal, interest, and late charges," the suit states.
None of the guarantors have made payments, either, Associated Bank alleges.
In addition to the money due, Associated Bank is seeking interest, late charges, attorneys' fees, costs and other relief the court deems just.
It is represented by Teresa Dale Pupillo of Carmody MacDonald in St. Louis.