A Columbus, Ga., bank has obtained a $11.5 million judgment against McKenzie Trucking & Leasing operated by Toby McKenzie and others of Cleveland, Tn.
The judgment in favor of Columbus Bank and Trust Company was obtained in Federal Court in Columbus. An action was brought in Federal Court in Chattanooga to seek to enforce the judgment.
It is brought against Mr. McKenzie, Brian E. Allsmiller, Daniel C. Trott, William S. Campbell and Greg L. Steele.
It says the bank is entitled to take possession of all trucks, trailers and other assets of the trucking firm that was set up in 2004.
The total judgment is for $11,512,003.
Meanwhile, attorneys for Mr. McKenzie asked that his Chapter 11 action in Chattanooga Bankruptcy Court be dismissed.
Attorney Harry Cash said Mr. McKenzie has agreed to surrender the Sweetwater Hotel and Convention Center in Sweetwater, Tn.
He said the Chapter 11 action was initially filed to attempt to seek to sell the hotel.
The attorney said, "After further investigation and the retention of an appraiser, the debtor determined that it would probably not be able to sell the hotel for enough to pay off mortgage claims against it.
"Accordingly, the debtor determined that it would probably not be able to propose a confirmable Chapter 11 plan and agreed to surrender the hotel."