DOW JONES NEWSWIRES
JPMorgan Chase & Co. (JPM) filed a lawsuit against privately
held bank holding company FBOP Corp. over $246 million owed on
promissory note, after the company allegedly failed to repay its
revolving loan.
According to the lawsuit, which was filed in the U.S. District
Court for the Northern District of Illinois, JPMorgan and several
other lenders made certain revolving loans to FBOP of at least $246
million, with a maturity date of May 28.
The suit said FBOP was currently in breach of the credit
agreement and notes, having failed to pay the total principal
amount by the termination date. FBOP first entered the credit
agreement in April 2001.
As of the revolving facility termination date, total obligations
were at least $247.8 million, according to JPMorgan, which included
the principal notes and about $1.56 million in accrued, but unpaid
interest and $254,009 in fees and expenses, including attorneys'
fees.
Units of Associated Banc-Corp. (ASBC), Bank of America Corp.
(BAC), Fifth Third Bancorp (FITB), Marshall & Ilsley Corp. (MI)
and United Bank of California are also plaintiffs.
FBOP, which owns banks in Illinois, California, Texas and
Arizona, didn't immediately provide a comment on the lawsuit.
-By John Kell, Dow Jones Newswires; 201-938-5285;
john.kell@dowjones.com