MONTCALM COUNTY, Mich. — The owners of Lakeside Motor Sports in Mecosta and Nelson’s Speed Shop in Greenville are facing a lawsuit that claims they have defaulted on more than $1 million in loans.
Union Bank and Lake Osceola State Bank say the closure of the two locations for several days last month signaled that the company would not be able to make its loan payments, and it filed suit.
On Wednesday, Montcalm County Circuit Court Judge Ronald Schafer held a hearing to hear arguments to replace a temporary restraining order with a stipulated preliminary injunction.
The judge issued a preliminary injunction Thursday, stating that certain company assets were collateral and must be sold in an auction, with the proceeds going to the banks.
The injunction lists 17 vehicles and boats that must be moved to Lakeside Motor Sports car garage in Mecosta as soon as practically possible.
On that list was a 2021 Corvette, a 1969 Chevrolet convertible, a 2019 Lincoln Continental and a 2019 Dodge Challenger.
I reached out to the attorneys representing both sides for comment. Lawyers for the plaintiffs declined to comment. FOX 17 confirmed there are three other lawsuits filed against the company, but the paperwork was not yet publicly available.
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