A longstanding lawsuit between JPMorgan Chase and the former parent of Park National Bank has ended, with a judge requiring FBOP Corp. to pay out $264 million.
Chase and a group of other banks sued FBOP in June 2009, seeking repayment of $246 million in loans dating back to April 2001. A FBOP official said at the time that the bank had been extending the line of credit each year, and had been doing the same up until the suit was filed.
In October 2009, FBOP’s banks failed, and in subsequent court filings, the corporation said the lawsuit partly led to its downfall.
A year later, U.S. District Court Judge Ronald Guzman has ordered FBOP to pay up $264.2 million to Chase and the consortium of other lenders. That includes $246 million in principal and $1.3 million in unpaid interest. May 28, 2009, was the date by which FBOP was supposed to have paid off the loan.
The Oct. 18 order was consented to and signed by FBOP chairman Michael Kelly, according to court documents.
