Phantom Regiment faces $367K lawsuit
The Phantom Regiment Drum & Bugle Corps is being sued for defaulting on a $450,000 bank loan. The suit lists Rescomm Holdings No. 2 LLC, as the plaintiff. According to the suit, the Rockford-based Phantom Regiment took out a $450,000 loan on March 7th, 2000, but has failed to maintain payments.
Rescomm is trying to collect on an outstanding balance of $367,563.67. Thursday, Phantom Regiment Board President Tim Farrell said the loan was initially taken out from a local bank to "subsidize some debt the organization incurred in the late 1990s before I was board president. This was a salvage operation."
Farrell said the corps is in the process of restructuring its debt. A court date has yet to be set, but Farrell said, "I expect that we will arrive at an equitable agreement."
The corps brought national attention to Rockford in September when the 135-member unit performed in an ESPN2 televised event. "It's ironic that we are able to do this for the community", Farrell said of the corps' efforts to promote the city, "and yet it is so difficult for us to cover our expenses. We look to Rockford for support."
Farrell said the corps' $1 million operating budget is supported in part by an $1,800 per person membership fee, performance fees, souvenirs, donations and fundraising.
The Phantom Regiment will celebrate its 50th anniversary in 2006. (Text: Rockford Register Star, Chris Green)
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