Northwest sues interest holder for $5 million in goods due on loan

By Caroline Salls

Pittsburgh, May 4 – The Northwest Co. filed a breach of contract lawsuit against member interest holder Extreme Horse Ltd., according a complaint filed with the U.S. Bankruptcy Court for the Southern District of New York.

Northwest said it transferred $5 million to Extreme Horse on May 7, 2017 as a loan to enable Extreme Horse to invest in Northwest Textile LLC.

However, the lawsuit alleges that Extreme Horse informed Northwest soon after the transfer was completed that it was unable to repay the loan in cash, as originally agreed.

As a result, Northwest said the parties agreed that Extreme Horse would instead repay the loan by providing $5 million worth of goods to Northwest.

“Despite due demand by Northwest, Extreme Horse has failed and refused to provide the goods to repay the transfer,” the complaint said.

Northwest is a Roslyn, N.Y.-based branded home textiles company. The company filed bankruptcy on April 18 under Chapter 11 case number 20-10990.

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