Bankrupt auto-dealership lender PrimaLend Capital Partners and its CEO Mark Jensen were sued by auto loan servicer Prime Asset LLC for allegedly saddling it with nearly $45 million in debt and an under-performing portfolio.
Prime Asset, a Texas-based “buy-here-pay-here” auto loan business, became a “dumping ground” for PrimaLend’s distressed assets and left it overleveraged and facing foreclosure, the company said in a complaint filed Wednesday in the US Bankruptcy Court for the Northern District of Texas.
Prime Asset is alleging breach of fiduciary duty and bad faith. It also asked the court to stop PrimaLend from foreclosing on its assets, ...