CHICAGO (Legal Newsline) - The United States is suing a press manufacturer, alleging defaulted loan payments.
The United States of America, on behalf of the Small Business Administration (SBA), filed a lawsuit Jan. 26 in U.S. District Court for the Northern District of Illinois Eastern Division against KBA North America.
The suit states on Sept. 27, 2006, SomerCor504 made two loans assigned to the SBA in sums of $1.412 million and $1.894 million to All Out Inc., on which KBA unconditionally guaranteed "12 months of payments, either consecutive or nonconsecutive, and not to exceed the aggregate amount of $500,000" on the first loan, and a payment of $625,000 on the second.
The suit alleges All Out defaulted on payments for both loans, that the maturity of the notes has been accelerated and that the entire balance and indebtedness is due and payable, totaling an outstanding balance of more than $1.367 million for the first and more than $1.056 million for the second.
Because KBA unconditionally agreed to pay SBA a sum equal to 12 monthly loan payments on the first loan, the suit alleges ,that sum is $203,493.60, which KBA has failed to pay.
The lawsuit also states KBA has failed to pay the principal sum of $625,000 guaranteed on the second loan.
The United States seeks to recover the above amounts, together with costs of the action. It is represented by U.S. attorney Zachary T. Fardon and special assistant U.S. attorney Kate R. O'Loughlin in Chicago.
U.S. District Court for the Northern District of Illinois Eastern Division Case number 1:16-CV-01164