Lawsuit Accuses Bank Of Hiding Bad $8.7M Loan
By
A lawsuit filed by
The lawsuit, filed Wednesday in
In 2005,
Devi, an affiliate of the hotel management company
According to the lawsuit, by 2011, Devi had become delinquent on the loan. Full payment was due on
"Southern had engaged in a variety of communications with Community about collecting the matured and unpaid Devi loan," the suit says.
Those discussions included negotiating terms for restructuring the loan. Southern insisted on certain terms, but Community balked at them, the suit says.
By this summer, Community restructured the loan without Southern's approval, disregarding Southern's objections, the suit says.
"Community's own interests and hidden agenda became readily apparent in short order," the suit continues.
Community, with two branches in
By the end of June, the bank reported
On
Southern alleges in the suit that Community was playing "a cat and mouse game" that was "driven by its overriding and self-serving desire to find a purchaser for itself."
Southern's lawyer in the suit,
Had the true status of the loan been revealed, the deal might have been off, or the value of the deal greatly reduced, the suit concludes.
Executives at
Southern is seeking the balance of its share of the loans -
about
Based in
Copyright: | (c) 2012 ProQuest Information and Learning Company; All Rights Reserved. |
Source: | Proquest LLC |
Wordcount: | 621 |
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