Ramifications

Arkansas Business, Oct 17, 2005

Ram Venture Holding Corp.'s purchase of American Apparel & Accessories Inc. of Little Rock in April 2004 isn't looking so spiffy.

In 2002 and 2003, American Apparel, the camouflage gear manufacturer, made two loans with Delta Trust & Bank that totaled $3.85 million. But when Ram Venture, the Fort Lauder-dale, Fla., shell corporation that already owned Natgear LLC in Little Rock, bought American Apparel, it assumed that debt.

Delta Trust, in a lawsuit filed in Pulaski County Circuit Court, said Ram Venture defaulted on the loans in March. Delta sued Ram and Natgear in September for the outstanding amount on the loans, which came to $2.3 million.

Delta recently sold some of Ram Venture's collateral and raised $1.25 million, but the lawsuit didn't say what exactly was sold.

So on Sept. 30, Circuit Court Judge Ellen Brantley issued a judgment against Natgear and Ram Venture for the remaining debt on the loans, which was $1.07 million plus interest and $2,500 in attorneys fees.

Neither Natgear nor its attorney, Cal McCastlain, immediately returned a call for comment.

You may recall that Ram Venture was at one point hoping to buy Stuttgart struggling landmark, Mack's Prairie Wings. That hasn't panned out.

And Ram Venture has stopped filing reports with the Securities & Exchange Commission. It has that privilege since it has fewer than 300 shareholders.