By ALLISON WOOD

Staff Writer

AKRON — Medina Mitsubishi filed for Chapter 11 bankruptcy after sheriff’s deputies were stationed at the Medina Township dealership last week.

Federal court documents filed Friday show the Medina Road dealership owed more than $10 million, including $6 million for about 250 vehicles from Mitsubishi Motors Credit of America.

This action, filed by Mitsubishi Motors Credit in U.S. Bankruptcy Court in Akron, cancels a court order signed May 28 by Medina County Common Pleas Judge James L. Kimbler that allowed the company to take possession of vehicles and all the other items in the dealership, court documents show.

The Medina County Sheriff’s Office had deputies stationed at the dealership from Thursday afternoon until Friday evening, Chief Deputy Ken Baca said Wednesday.

The creditor was worried the vehicles would leave the property, court documents show.

As part of the loan agreement, Mitsubishi Motors Credit of America is entitled to all the items in the dealership if it fails to pay, which also includes auto equipment, parts and furniture in addition to the vehicles, the common pleas complaint reads.

Medina Mitsubishi’s financial problems began in 2004 and became more serious in the fall of 2007 due to declining sales, federal court documents filed on Monday show. At that point, the dealership was unable to pay operating costs and did not pay its sales tax to the state in 2007.

On May 29, the day before declaring bankruptcy, dealership managing partner Eric Sonnie Sr. entered into a sales agreement with Paul Hrnchar, federal court documents show, who is the owner of Medina World Cars, 3950 Pearl Road, Medina Township. In the agreement, Paul Hrnchar agrees to purchase the dealership and the property at 2825 Medina Road.

Phone messages left for Sonnie and Paul Hrnchar’s son, Scott, at Medina World Cars were not returned Wednesday.

The Ohio Department of Taxation placed a lien on the dealership May 20 for failing to pay more than $66,000 in sales taxes, common pleas court records show.

Medina Mitsubishi employs about 45 people, court documents show.

Wood may be reached at 330-721-4050 or allisonwood@ohio.net.