National Bank's Dismissal ( .PDF )
Journal entry ( .PDF )
Satisfaction of Judgment ( .PDF )
The former home of Custom Highline is poised to be listed for sale, nearly a year after the auto-sales business closed under pressure from its lenders.
Central National Bank plans to put the building and parking lot on the market by the end of December, now that the bank and two other creditors - Auto Leasing Corp. and National Bank of Kansas City - have settled their differences with the building's owners and one of the business' owners.
As part of the settlement, the creditors agreed to dismiss civil proceedings against Raonak Ekram and Eston J. Schwartz, Lawrence physicians who own the building at 1527 W. Sixth St.; and David Rueschhoff, a co-owner of Custom Highline.
"Lawrence did what Lawrence does: It found a positive solution to a difficult situation," said Bruce Woner, an attorney for Central National Bank. "The doctors and Mr. Rueschhoff met their obligations to their creditors and their community, and my hat's off to all three."
Custom Highline's other owner, Zarif Haque, was not a party to the settlement and - in an order approved Oct. 30 by Douglas County Distrist Judge Peggy Kittel - has been ordered to pay Central National Bank $1.5 million, plus interest and other charges.
Haque had started Custom Highline at 2441 W. Sixth St., the former home of Rueschhoff Locksmiths and Security Systems, before buying out Quick's Bar-B-Que and relocating his operation in March 2007 to a larger showroom he had built on the former Quick's lot.
Within eight months, however, Custom Highline's lenders had moved to foreclose on the business - having discovered that their separate loans had been secured using the same Cadillac, Lexus, BMW, Mercedes and Infiniti vehicles on Custom Highline's lot.
Two months later, Haque was promising to reopen the business within a month, blaming his "dispute between inventory financing and a line of credit" on his business getting too big, too fast.
Last week, representing himself before Judge Kittel, Haque signed the judgment that acknowledged his debt of $1.5 million, plus more than $140,000 in interest.
"I don't have any doubt that the young man has dreams and aspirations, and I wish him the best with regard to those dreams and aspirations," Woner said. "I feel positive we've reached a final agreement."