Four creditors of Phoenix area carwash mogul Daniel “Danny” Hendon sued him, his business partners and his businesses claiming defendants owe over $50 million. The first lawsuit was filed last month in the Maricopa County Superior Court by M & I Marshall & Ilsley Bank. M & I claims that the defendants defaulted on a $13.8 million business loan. Danny is involved in over 90 businesses, but four of them recently filed for bankruptcy protection.
In another lawsuit Comerica Bank alleges that Danny Hendon and nineteen of related companies defaulted on a loan with a balance of $24.7 million. A third lawsuit was filed last month by Diversified Funding Group LLC, alleges that Danny Hendon and Robert Banovac owe more than $12 million on a commercial loan. Rightpath Limited Development Group LLC and HB Equities LLC are also defendants in this lawsuit. Rightpath invested in the now bankrupt lender Mortgages Ltd. It was was co-owned at one time by Hendon, Banovac and former partner Rick Burton. The fourth lawsuit was filed by Western Starr Aviation Management Inc., and Starr Aviation Marketing LLC. The plaintiffs in this lawsuit allege that Danny Hendon and Robert Banovac breached a contract and owe $100,000 in damages and expenses.
I love this statement by Danny’s lawyer, “we’re a little confused about why these lenders would come after Danny’s Family Companies like this.” Let me clear up any confusion. The plaintiffs allege that THE DEFENDANTS DEFAULTED ON THEIR OBLIGATIONS TO PAY MONEY. I think most people understand that if you borrow money and don’t pay it back, the lender has a tendency to sue to collect the debt.