More Creditors File Suit against Danny’s Car Wash Owner


On the heels of a complaint filed Feb. 1 by M&I Bank against Danny’s Family Cos., three more creditors have filed lawsuits against Danny Hendon, his business partners and some of their companies for alleged contract violations, including defaulting on loans, according to a report by The Arizona Republic. Hendon is owner of the Danny’s Family Car Wash chain and is reportedly associated with about 90 businesses in Arizona.

Danny’s Family Cos. filed for Chapter 11 bankruptcy protection for three carwash locations and a convenience store two days after M&I Bank filed its complaint in Maricopa Superior Court seeking a court-appointed receiver to take over the four businesses. In court documents, M&I officials said Danny’s had defaulted on four loans and owed $12.9 million.

The separate bankruptcy filings effectively blocked the bank’s receiver request and have since been consolidated into a single case in U.S. Bankruptcy Court. Attorneys for Danny's Family Car Wash have argued that the carwashes and c-store need to remain open in order to repay the M&I loans and submitted a budget proposal they said would enable the limited liability companies to do so.

"I believe Danny's Family car washes are going to be around for a long time," Bert Roos, an attorney representing Danny's Family Cos., told the Republic.

On Monday, Comerica Bank filed a suit alleging Hendon and 19 companies he is associated with are in default on a $24.7 million balance stemming from a $40 million loan, the Republic reported.

Both Comerica and M&I have asked the court to restrict Hendon’s use of cash and collateral and to determine if funds owed to them were lent to other Hendon businesses or used to pay other unrelated debts.

A third lawsuit filed by Diversified Funding Group LLC alleges $12 million in unpaid debt, and a fourth case filed by Western Starr Aviation Management Inc. and Starr Aviation Marketing LLC, seeks $100,000 for alleged breach of contract, the article said.


The Arizona Republic: Creditors file suits vs. car-wash mogul

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