Fog Cutter Capital Group Inc. has settled a $5.1 million lawsuit filed by its lender, American Industries Inc. in March, 2012. Under the terms of the settlement agreement, Fog Cutter will pay American Industries Inc. between $1.2 million and $1.8 million over as many as three years in full satisfaction of its debt.
Fog Cutter had previously disputed the remaining amount due under the loan pending the resolution of a disagreement regarding the value of certain collateral that had been conveyed to American Industries Inc. Under the agreement, the parties provided mutual releases of liability and American Industries Inc. agreed to dismiss the lawsuit, with prejudice.
“The Court System is never an efficient venue to resolve business disputes. I am very pleased that we were all able to quickly settle this matter,” says Andrew Wiederhorn, Fog Cutter’s chairman and CEO.
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