HILO — Parker Land Trust, a sister entity of Parker Ranch, claims in a foreclosure lawsuit that German industrialist and biofuel pioneer Michael Saalfeld owes more than $50 million for 3,500-plus acres of land he bought from the Waimea ranch
HILO — Parker Land Trust, a sister entity of Parker Ranch, claims in a foreclosure lawsuit that German industrialist and biofuel pioneer Michael Saalfeld owes more than $50 million for 3,500-plus acres of land he bought from the Waimea ranch in 2010.
HILO — Parker Land Trust, a sister entity of Parker Ranch, claims in a foreclosure lawsuit that German industrialist and biofuel pioneer Michael Saalfeld owes more than $50 million for 3,500-plus acres of land he bought from the Waimea ranch in 2010.
The lawsuit was filed April 19 in 1st Circuit Court in Honolulu by Parker Ranch Foundation Trust trustees Michael Gibson, Timothy Johns and B.G. Moynahan.
Named as defendants are Saalfeld; his wife, Jeannette Saalfeld, two of Saalfeld’s Hawaii companies, Kukuipahu Makai LLC and Hualua Land LLC; and the German limited liability company Opal Vermogensversaltung GmbH.
The land in question is 35 parcels totaling 3,509 acres bought by Kukuipahu Makai for $49.3 in August 2010, according to Hawaii County tax records. The contiguous parcels are on both sides of Akoni Pule Highway extending from Mahukona Beach Park north almost to Puakea Bay Ranch. The parcels range in size from less than an acre to 1,681 acres.
The suit claims Kukuipahu Makai executed a second amended promissory note for more than $49.7 million on Jan. 1, 2016. Terms of the note include payment in full by Dec. 31, 2016, but gave Kukuipahu Makai a one-time option to extend the maturity date an additional year to Dec. 31, 2017, upon payment of $5 million to Parker Land Trust.
“Defendant Saalfeld is in default of his obligations under the guaranty, as amended and confirmed,” the suit states.
According to the complaint, as of March 1, Kukuipahu Makai owed almost $53.2 million in principal and interest on the note. Interest, at a yearly rate of 12 percent or $16,572 a day, will continue to accrue from March 1 “to the date proceeds from the foreclosure sale are disbursed to plaintiffs,” the filing states.
The suit is also seeking Parker Land Trust’s attorney fees and litigation expenses.
This isn’t the first lawsuit filed by a Parker Ranch entity against Saalfeld.
On April 2, 3rd Circuit Court Judge Ronald Ibarra ruled that Saalfeld and his company Merica International LLC owe PR Mauna Kea LLC, another Parker Ranch-related entity, a total of $555,911 in principal, interest, attorney fees and costs on an unpaid promissory note, with interest accruing on the uncollected judgment at an annual rate of 10 percent.
The PR Mauna Kea suit doesn’t specify what the note was for, but Merica Hawaii is listed on the state Department of Commerce and Consumer Affairs website as the agent for SunFuels Hawaii LLC, a biodiesel company that lists Saalfeld as its sole member.
SunFuels uses the breakdown of cellulosic fiber to produce synthetic diesel fuel, a process that differs from conventional biodiesel production, which involves the extraction of oil from plants including palms and jatropha.
Parker Ranch and Parker Land Trust are subsidiaries of Parker Ranch Foundation Trust. Trust beneficiaries include Hawaii Preparatory Academy, Parker School, Hawaii Community Foundation-Richard Smart Fund and North Hawaii Community Hospital.
Attempts to reach Parker Ranch for comment were not responded to by press time. Saalfeld was also unable to be reached for comment.
Carlsmith Ball LLP, the Honolulu law firm representing Parker Land Trust, declined comment.
