Judge Sentences Founder Of Thor Construction With $ 3M Bank Loan
A Hennepin County judge has ruled that the founder of Thor Construction is responsible for repaying more than $ 3 million the bankrupt company owes Sunrise Banks, but legal wrangling continues.
In her ruling earlier this month, Hennepin County District Judge Susan Robiner said Richard Copeland was responsible for repaying $ 3.2 million to Sunrise Banks to pay off a loan the bank called in December.
But a deal made between Copeland and Sunrise Banks ahead of the decision could cap Thor’s founder’s exposure at $ 1.5 million and allow Sunrise to try and collect debts from Thor Construction and other sources for the rest. of what is owed to him, according to the lawyers in the case. .
Nicholas Henry, Copeland’s attorney, has asked Robiner to reconsider his judgment in light of the deal. D. Charles Macdonald, a Sunrise lawyer, acknowledged the deal, which has yet to be approved by the judge.
The Sunrise Banks lawsuit, filed in January, led to the revelation that Thor Construction, nearly 40, was in financial trouble.
Target Corp. said in January that it provided $ 7 million in 2018 to subcontractors that general contractor Thor did not pay for store renovations after Thor was paid by the retailer.
Thor’s longtime CEO Ravi Norman has left and the company said in the spring that it was going out of business.
Last year, Thor said it generated more than $ 350 million in annual revenue, including JIT Energy Services, a commercial building energy subsidiary it acquired in 2017.
Thor’s stake in a $ 36 million building he constructed in northern Minneapolis to house his headquarters and the offices of Hennepin County and nonprofit organizations, including the Metropolitan Economic Development Association, remains to solve. Recruited by the county as a partner in the project, Thor valued his investment at $ 12 million, which would mostly be a mortgage.
Hennepin County recently said it has increased its stake in the facility to around $ 26 million. Target has also committed to renting space for other occupants.
“We are not interested in owning the Thor building,” County Administrator David Hough said recently. “We are happy with what we have. “
Meanwhile, bankers and lawyers are working on a resolution for the Thor mortgage, according to Peter McLaughlin, CEO of the local office of Local Initiatives Support Corp., which structured the Thor construction loan.
Norman, the former CEO of Thor Companies, said last week that he had acquired several subsidiaries of Thor other than the Copeland-owned construction company. Norman said he is working with new partners on an offer to buy Thor space.
Neal St. Anthony 612-673-7144