A parent company of Brunswick aircraft refurbisher Tempus Jets has been sued by a British investment company that alleges the jet refurbisher failed to repay $9.7 million in loans.
The suit is the second this year to allege breach of contract by the company.
Greensill Capital (UK) Ltd. filed suit Friday in U.S. District Court in Virginia, where Tempus Intermediate Holdings, LLC, maintains its main office. The lawsuit alleges Tempus failed to repay an October 2014 loan for $9,658,224.34, plus interest, according to court documents.
The suit charges Tempus and principals Jack Gulbin and Scott Terry with breach of contract and alleges the two subsequently violated an agreement preventing them from selling or otherwise transferring Tempus assets until Greensill is paid.
The plaintiffs allege Tempus borrowed $10.3 million in four transactions between October 2015 and January 2016 and was due to repay the funds on specific dates.
In March 2016, shortly after Tempus defaulted on the loan, Greensill demanded immediate and full repayment and instead of filing suit entered a forbearance agreement with Gulbin and Terry.
The two allegedly entered into a guaranty agreement with Greensill that if Tempus defaulted on any payment, Gulbin and Terry would be responsible for the payment.
In 2016, Gulbin and Terry repaid $631,082.95 but have allegedly repaid none of the $9,658,224.34 balance, according to court documents.
Furthermore, Greensill argues that in June 2016, Terry pledged his interest in Tempus to Firefly Financial Limited, as did other members of Tempus, in violation of the agreement.
“I am aware of the suit and have no comment other than negotiations are currently underway to resolve the issue between the parties and it has no real effect on our operations in Brunswick,” Terry, listed as CEO of Tempus Applied Solutions, wrote Tuesday night in an email to the Bangor Daily News. He declined to respond to questions about the number of employees in Brunswick and the status of Tempus’ lease at Brunswick Landing.
In February, creditor Firefly Financial Ltd. sued the parent company of Tempus Jets and its co-founder for failing to repay loans it said were worth more than $26 million.
At the time, a temporary injunction blocked Terry and Gulbin from breaking up various Tempus businesses. Firefly claimed Terry was insolvent and that the breakup of the business would harm its ability to recoup its loans.
That lawsuit followed a period of financial difficulty, which Tempus attributed to contract delays. Tempus subsequently fell behind on lease payments on its space at Brunswick Landing.
In February, Steve Levesque, executive director of the Midcoast Regional Redevelopment Authority, which is redeveloping the former Navy base, said the company still had staff in a 66,000-square-foot space in Hangar 6, which it rents on a month-to-month basis, though the headcount had fluctuated since Tempus Jets began leasing space in late 2013.
A year ago, Tempus reduced its total employee count to 29 from 52.
Levesque on Tuesday declined to be specific about whether Tempus is current with its lease payments, saying only, “Somewhat.” He said the company continues to rent space in Hangar 6 month-to-month, and said, “They’ve given us every indication they want to stay. I know there are a bunch of cars in the parking lot, and there are three big airplanes in the hangar.”
Greensill asked a judge for compensatory damages, pre- and post-judgment interest, attorneys’ fees, and a declaration that under the terms of the forbearance agreement the defendants may not sell or otherwise dispose of their assets.
A receptionist at Tempus referred calls to Gulbin to the Colorado office of Pilatus Aircraft Ltd. Gulbin did not respond to a message left in his voicemail Tuesday afternoon.