Investment company files suit against heat provider
YOUNGSTOWN -- A North Lima investment company has sued the minority owner of a business that provides steam heat to downtown Youngstown buildings, accusing the business of failing to make payments on promissory notes.
Atty. E. Carroll Thornton Jr. filed the suit in Mahoning County Common Pleas Court on behalf of Mackall Investment Co., 10900 South Ave.
Named as defendants are Thermal Ventures Inc., with an office listed on Front Street, and Carl E. Avers, Thermal's chief executive officer.
Avers said Thursday he had not seen a copy of the suit and did not want to comment.
The suit says Thermal has failed to make payment as called for under the terms of three $500,000 promissory notes executed between Mackall and the heating company on March 20, 2003, Sept. 15, 2003, and Jan. 15, 2004.
The suit also says Avers delivered to Mackall an unconditional guarantee of payment on the promissory notes, but has failed to make payments called for in the guarantee.
The investment company is suing Thermal for $1.5 million with interest, and Avers for a like amount.
The suit did not say what the promissory notes were for, and Thornton was unavailable to comment Thursday.
Thermal Ventures Inc. retains a minority ownership interest in Thermal Ventures II, which is the parent company for Youngstown Thermal, which provides steam heating for about 50 customers downtown. Thermal Ventures II is not a party to the suit.
The parent company of Youngstown Thermal has the money to buy other heating systems because of a partnership created in 2000 with Yorktown Energy Partners, a New York investment firm that handles endowment money for some major universities.
Yorktown owns a controlling interest in Thermal Ventures II, which was a new entity created for the purpose of expansion. Yorktown wanted to expand its investments and liked the local company's expansion plans, Bees said.
Thermal Ventures II was created out of Thermal Ventures Inc., which was founded by Carl Avers and Lewis Mahoney.