The owner of the now-shuttered Congress Theater is facing a lawsuit that accuses him and his business entity of failing to keep their promise under a future receivables agreement.
Can Capital Merchant Services Inc., a Delaware corporation formerly known AdvanceMe Inc., filed a complaint Nov. 5 in Cook County Circuit Court against Congress Corp., Congress Theater and Erineo Carranza, alleging breach of contract.
According to the complaint, Can Capital entered into an future receivables purchase and sale agreement with Congress on April 26, 2012 for it to purchase future card receivables from Congress in exchange for a lump sum cash payment intended to be used to fund an expansion and for working capital.
Under the agreement, Can Capital says it paid Congress $148,267 in April 2013 in exchange for $185,333.75 of Congress' future card receivables via daily remittances or debits of a specific percentage of its card processor.
The plaintiff claims Congress initially remitted the specified percentage, but then stopped in August 2013, resulting in a breach of contract. The Congress Theater, which faced scrutiny from the city over liquor and building code violations, closed sometime last year and was in the process of being sold as of earlier this year.
Can Capital is seeking the $162,574.75 it contends the defendants owe under the agreement, plus court costs. The plaintiff is represented by attorney Maysoun B. Iqal of Milwaukee.
Cook County Circuit Court case number: 2014L011510.
This is a report on a civil lawsuit filed at Cook County Circuit Court. The details in this report come from an original complaint filed by a plaintiff. Please note that a complaint represents an accusation by a private individual, not the government. It is not an indication of guilt and it represents only one side of the story.