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WILSON. N.C. — Carroll County seeks to strengthen its case against Pro-Form Construction in bankruptcy court by showing that it's the inheritor of AmerLink's obligations.
Attorneys for the county have discovered the document in which AmerLink transferred 32 acres of land to its sister construction company, according to court documents. That land was used in a failed economic development deal between Carroll and AmerLink for the log home company to build a sawmill and create 200 jobs in the county.
Carroll's attorneys cite "the contribution agreement" between the two companies in a bankruptcy court filing to show that AmerLink signed over not only the property to Pro-Form, but also its obligations to the county.
"Carroll County has discovered an agreement between AmerLink and Pro-Form Construction Inc…. under which it appears AmerLink assigned, conveyed and delivered certain assets, and liabilities to Pro-Form," court papers state.
A copy of the contribution agreement attached to Carroll's motion contains language acknowledging the substitution of Pro-Form in the performance agreements for AmerLink.
The document also provided for AmerLink's release from all liabilities and obligation under the performance agreements.
That means it falls to Pro-Form to live up to elements of a performance agreement under the economic development deal between AmerLink and Carroll County, attorneys argue. "Pro-Form is liable for breach of the grant performance agreement and the property performance agreement," the papers say.
It was Pro-Form that produced the contribution agreement as a result of a discovery motion from Carroll County, the filing notes.
Both the breaking up and selling off of AmerLink to satisfy its debts and Carroll County's lawsuit against the company continue in bankruptcy court. The court case is scheduled to proceed early next year.
Also central to the case is whether Carroll County could sever its lease with AmerLink on the model home sales center at the Southwest Virginia Farmers' Market, so that property would not be seized and sold to help cover the company's debts.