A Riverhead aerospace company that partnered on the $40 million land sale at the Enterprise Park at Calverton is being sued by a Connecticut company for allegedly failing to pay property taxes and defaulting on conditions related to a $10 million loan.
Hexcel Corp., an advanced composites company with principal offices in Stamford, filed a complaint on March 18 in State Supreme Court in Riverhead against Luminati Aerospace LLC. According to court documents, Hexcel said it loaned Luminati $10 million in May 2016 via a promissory note, or a contractual agreement between two parties under which the borrower agrees to repay the lender within a specific time period.
Luminati was to use the funds to “repay all liabilities under the mortgage loan secured by the Calverton Property,” according to the complaint. According to the court documents, Luminati defaulted on several conditions of the promissory note, including failing to:
- Pay property taxes on the property as required by the mortgage;
- Maintain insurance for both the property required by the mortgage and for insuring collateral against loss or damage, and;
- Pay rent to Laoudis of Calverton LLC, the landlord of the property at the EPCAL site that Luminati leases.
Laoudis had filed a petition in Riverhead Justice Court against Luminati Aerospace, seeking to evict the company from the property. The case was scheduled for Wednesday, but in an interview Tuesday, Robert Hasday, the attorney representing Luminati, said Luminati had reached a settlement earlier in the day with Laoudis. The deal will require Luminati — which rents space from Laoudis at Building No. 6 — to vacate the site. Hasday said the settlement essentially resolves any need for further legal action to settle the dispute.
Regarding Hexcel, Hasday said, “We are in active negotiations with them to settle the situation and I am hopeful that it will be settled on a basis that is acceptable to both parties.”
As of March 12, Hexcel was seeking more than $12.5 million from Luminati, including the outstanding balance and all unpaid accrued interest.
Luminati partnered with Canada-based developer Triple Five Group to form Calverton Aviation and Technology, a venture group that is finalizing a deal to purchase more than 1,600 acres of land at the Enterprise Park at Calverton. The venture group has proposed using the property to expand Luminati’s operations.
The Riverhead Town Board voted 3-2 on Nov. 7 to approve the deal. Leading up to the vote, residents and town board members criticized the suitors due to questions about Luminati’s financial capability and the venture group’s financial ability to move their proposal forward. Board members approved the deal, saying they felt the project would generate construction jobs in Riverhead.
Triple Five representatives did not return requests for comment Tuesday. Riverhead Supervisor Laura Jens-Smith, who voted against the deal, also did not return requests for comment Tuesday.
On Jan. 24, Hexcel served a default notice to Luminati, giving the company 30 days to cure the defaults and perform its obligations under the conditions of the promissory note. However, “despite acknowledging receipt of the default notice, [Luminati] have failed to cure the defaults,” the court documents stated.