Simmons Bank files to foreclose on Union Stockyards owners, who say that won’t happen

Simmons Bank has filed a breach of contract and foreclosure petition against longtime ranchers Mike and Tina Andra, owners of Wichita Union Stockyards, the country-and-western themed event venue on 40 acres at 6425 W. MacArthur in Sedgwick County.

According to a June 8 filing in Sedgwick County District Court, the Arkansas-based bank is seeking almost $1 million, including fees, of the $1.5 million loan it gave the Andras to start the venue, which opened in December 2019.

“There will never be any kind of a foreclosure ever,” Mike Andra said.

“This isn’t a problem at all. I don’t know why they did it.”

Andra’s loan officer declined to comment, and the bank’s public relations manager didn’t return a request for comment.

As of Friday afternoon, Andra said, “Everything’s on hold.”

He said the bank finally has accepted a $400,000 payment until an appraisal and refinancing on a new loan with a new bank can be completed.

Here’s what happened as Andra told it:

He said he wouldn’t have turned to an out-of-state bank, but he had a personal connection with a Wichitan who worked at Simmons Bank.

The loan renewed every 90 days at an interest rate of 4.25%.

When his banker friend unexpectedly retired, Andra said the bank told him it didn’t want to keep the loan. However, it did renew it a few times.

Then, the pandemic hit.

“They basically said, ‘We want out of this ASAP,’ ” Andra said.

He said the bank “didn’t want a loan on a business that COVID could shut down.”

He said venues like his “basically became a leper to the lending industry.”

Because Union Stockyards had been open for such a short time before the pandemic, Andra said he didn’t qualify for federal relief.

Andra began working with a Wichita bank on a new loan this year, and he said he told Simmons Bank he needed to renew one more time and could make a $400,000 payment until his new loan came through. He said the bank refused to accept his payment and put him in a default rate of 10%.

“It just dumbfounds everybody we’ve talked to about this.”

He said he thinks the issue is the bank “wants that 10%.”

“That’s the only thing I see what they’re thinking could be.”

Andra said he has the money to repay the loan in full.

“They know we’re good for the money,” he said. However, he said, “We hadn’t planned on paying that much cash to them.”

Andra said Union Stockyards is doing well.

“We’ve got a full schedule of events coming up and big concerts,” he said. “Business is great.”

He said there are a lot of corporate events, and he said a lot of nonprofits are moving their events there because of the venue’s size.

Andra said what Simmons Bank is doing is unethical, but he said everything will be fine, and it’s the normal ups and downs of doing business.

“This ain’t any different than farming and agriculture and the cattle business.”