Howard Crow, the owner of Seattle-based NobleRush dealership chain, has been sued by VW Credit after allegedly defaulting on $2.7 million in loans for motorcycles and other equipment, according to court documents filed in King County Superior Court.
VW Credit filed a lawsuit against Crow on Sept. 25 for the return of the inventory the captive loaned to NobleRush dealerships, in addition to the residual value of the defaulted loan after the lender liquifies the collateral.
NobleRush consists of five dealerships and sells motorcycles such as Ducati, BMW, Indian Motorcycles, and KTM.
In May 2018, Crow and several of his companies — Sammamish, Wash.-based Corsa Holdings and two dealerships named Ducati Seattle and Bellemoto — entered into an agreement with VW Credit to finance a “large volume” of inventory under the conditions that Crow would make scheduled payments to the lender, according to the lawsuit.
VW Credit loaned 170 Ducati motorcycles, which ranged in price from $7,000 to around $32,000, according to court documents.
After Crow missed several payments and VW Credit was “informed by a third party that the companies were considering, or had already filed for, bankruptcy protection,” VW Credit launched an audit on the dealerships. The lender found that the stores were closed for business and would “remain so for the foreseeable future,” the lawsuit claims.
Additionally, VW Credit learned that Crow was out of the country with no timeline for his return.
VW Credit notified Crow and his companies that they were in default and demanded that they either pay VW Credit $2.7 million by Sept. 24 or surrender the Ducati inventory. Crow has allegedly “failed and refused” to make payments or submit the collateral inventory, VW Credit wrote in the filings.