Gainey admits defaulting, cites economy

Gainey admits defaulting, cites economy

There are 35 comments on the WOOD-TV Grand Rapids and Michigan story from Oct 1, 2008, titled Gainey admits defaulting, cites economy. In it, WOOD-TV Grand Rapids and Michigan reports that:

Citing "a doubling in the cost of fuel" and "a 25% drop in the amount of freight in the past 18 months," Harvey Gainey told 24 Hour News 8 he defaulted on loans which led to a $238 million lawsuit filed by ...

Join the discussion below, or Read more at WOOD-TV Grand Rapids and Michigan.

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Tucker

Broomfield, CO

#1 Oct 1, 2008
Mrs. Geha's interview with Mr. Gainey was absolutely the worst interview I've ever seen. Can't you find someone better to do the evening news? Grand Rapids deserves better.
truckie

Colorado Springs, CO

#2 Oct 1, 2008
reality check big time!
realtiy check

Allendale, MI

#3 Oct 1, 2008
if this multi-millionaire cannot make it how should all of the rest of us during this economic whatever horrible things its called!

Since: Jun 08

Grand Haven, MI

#4 Oct 1, 2008
The company wants to renegotiate their loans because of the additional fuel costs and loss of business huh? Alot of people's situation have changed since they have taken their mortgage, but what happens to them because of loss of business (i.e. job) and higher costs? They lose their house is what happens, there is no renegotiating. WTF? Sounds like they better sell one of those five company's to pay this off.
DRCARP

Lawton, MI

#5 Oct 1, 2008
I loaded semi trucks for two years and heard first hand what the increased fuel costs did to independent drivers as well as trucking companies. Many of the privateers quit driving since they could not afford the additional costs. If the companies were fortunate enough they would pass along at least a portion of the increased fuel costs to their customers through fuel surcharges. The problem with levying a fuel surcharge was quite often a matter of necessity versus contractual obligations. The customer would have to have their product shipped to them so they would voluntarily subsidize the trucking companies. The problem associated with increased fuel costs would become evident to the trucking companies when their customers would not subsidize them and instead enforced their preexisting shipping contracts. I noticed the article about Mr. Gainey being an extremely generous philanthropist although I haven't read it. The lawsuit seeks over two hundred million dollars in damages, I only hope the final judgment is equal to the actual amount the Gainey Corporation is delinquent to Wachovia Bank. If this lawsuit isnít seeking some punitive damages as well as actual loss attributed to Gainey Corporationís failure to pay, it appears as though the comic spot on Jay Leno last night was rather accurate with regard to Wachovia Bank. He implied that their shareholders were abandoning them because they exercised poor judgment and illustrated this lack of judgment by airing a portion of their commercial that shows money falling from the sky around their clients. Whether the fuel crisis is manufactured to benefit oil companies or the true underlying cause of it is mainly attributable to the dynamics of supply and demand it has become painfully clear that increased costs associated to energy have had a catastrophic ripple effect on our entire economy.

“ACLU--Jihad with a law degree”

Since: Sep 08

Lovington, NM

#6 Oct 1, 2008
I thought the business was sound and the bank was grasping at straws?

Can't anybody be truthful anymore?
Buckboy

Haslett, MI

#7 Oct 1, 2008
Lakeshore wrote:
The company wants to renegotiate their loans because of the additional fuel costs and loss of business huh? Alot of people's situation have changed since they have taken their mortgage, but what happens to them because of loss of business (i.e. job) and higher costs? They lose their house is what happens, there is no renegotiating.****? Sounds like they better sell one of those five company's to pay this off.
I once heard someone say, "If you borrow fifty thousand dollars from a bank and can't pay it back, you have a problem. But if you borrow $50 million dollars and can't pay it back, THE BANK has a problem.

It'll be interesting to see where this goes.
wakeupamerica

United States

#8 Oct 1, 2008
maybe wachovias ceo who walked away with 40 million 2 weeks ago can give some of the money he ripped off from good people like u and me back to help recover some of this
Larry

Allegan, MI

#9 Oct 1, 2008
I agree I can't belive a man of Mr. Gainey stature would submit himself to those questions from Geha she is so out of control and a not an asset to Wood they should get rid of her. Just like the other night calling Rick Albion Rick Roberts the old broad is lossing it. Get rid of her
Tucker wrote:
Mrs. Geha's interview with Mr. Gainey was absolutely the worst interview I've ever seen. Can't you find someone better to do the evening news? Grand Rapids deserves better.
jgh

Hendersonville, TN

#10 Oct 1, 2008
Oh the excuses!..... This arrogant family is something else.

Maybe Harvey and Little Hitler should go load a few trucks for the competition and join the real world.

I feel sorry for the employees who were there trying to provide a living while these bums were bilking the banks... living the high life. Unfortunatly, they have $$$ stashed aside where the courts can't touch them.... the companies may fold... but the Gainey's will walk away.

Sad.
Larry WHO

United States

#11 Oct 1, 2008
Rick WHO?
Albion?
Roberts?
Albin?
If you are going to criticize Larry, better make sure your own bedroom is clean first!
Dutch

United States

#12 Oct 1, 2008
NAFTA and fuel costs are ruining several freight companies, not just Gainey.
unimpressed

Rockford, MI

#13 Oct 1, 2008
Dutch wrote:
NAFTA and fuel costs are ruining several freight companies, not just Gainey.
It's not just the freight companies. I work in the fastener business and oh how it's been affected!! Business has drastically dropped over the last seven years. It's a very scary time.
Larry

Allegan, MI

#14 Oct 1, 2008
You know who I am talking about get a life. My bedroom is clean what about yours.
Larry WHO wrote:
Rick WHO?
Albion?
Roberts?
Albin?
If you are going to criticize Larry, better make sure your own bedroom is clean first!
Clue Less

United States

#15 Oct 1, 2008
Geha "Is your company a victim of what's happening on Wall Street?" Is this broad serious? Does she even have a clue what the mess in the credit markets means?

It's about how even legit companies are finding it difficult to borrow new money.

How does the fact that GTS & Co.s defaulted on loans they already have?

Seems more like Gainey is contributing to the credit woes on Wall Street versus being an innocent victim.

Can't wait to hear Wachovia's side of this story so we have a balanced view. Funny how there was even no mention such as "we tried to contact Wachovia"...

Do some homework Suzie. We are embarassed for you.
ElleGirl

Grand Rapids, MI

#16 Oct 1, 2008
Clue Less wrote:
Geha "Is your company a victim of what's happening on Wall Street?" Is this broad serious? Does she even have a clue what the mess in the credit markets means?
It's about how even legit companies are finding it difficult to borrow new money.
How does the fact that GTS & Co.s defaulted on loans they already have?
Seems more like Gainey is contributing to the credit woes on Wall Street versus being an innocent victim.
Can't wait to hear Wachovia's side of this story so we have a balanced view. Funny how there was even no mention such as "we tried to contact Wachovia"...
Do some homework Suzie. We are embarassed for you.
haha...yes Susie, Gainey is the downfall for Wachovia..what was she thinking? I am not a reporter, but I surely could have brought to the table a few more thought provoking questions than that. "How is your company operating....Harvey should have gotten up and hauled her ars into the Operations room and have her take a look...it was business as usual.
Time and Again

Arvada, CO

#17 Oct 1, 2008
wakeupamerica wrote:
maybe wachovias ceo who walked away with 40 million 2 weeks ago can give some of the money he ripped off from good people like u and me back to help recover some of this
You have an interesting thought process. Bank Pres walks with 40M, so it is OK for Gainey to walk with 240M.
Are you suggesting that the bank is the "bad guy". You worked for the government didn't you?
rikki

Madison, WI

#18 Oct 1, 2008
Lakeshore wrote:
The company wants to renegotiate their loans because of the additional fuel costs and loss of business huh? Alot of people's situation have changed since they have taken their mortgage, but what happens to them because of loss of business (i.e. job) and higher costs? They lose their house is what happens, there is no renegotiating.****? Sounds like they better sell one of those five company's to pay this off.
It's eight companies..not five. Five are in the suit though.
hotelgal

San Antonio, TX

#19 Oct 1, 2008
wakeupamerica wrote:
maybe wachovias ceo who walked away with 40 million 2 weeks ago can give some of the money he ripped off from good people like u and me back to help recover some of this
Amen to that, and how long was he the CEO? One month? and he walked away with that much money, totally ridiculous, this is why we "Americans" are in the financial state we are in. I just wish we didn't have to bail their b.u.t.t.s. out.
Gary

AOL

#20 Oct 1, 2008
Just another fancy trick to save money for both companies to capitalize off tax payers dollars?? Whose gonna get in trouble and be held acountable and go to prison? no one. Just the tax payers held prisoner. Grab a piece of the pie, everyone. Next Amway will probably get involved, then Meijers??

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