Park National parent to pay $264 million

By Becky Yerak
Posted Oct. 22, 2010 at 6:46 p.m.

A 2009 lawsuit filed against the owner of Chicago-based Park National Bank by a consortium of large banks has ended with a consent judgment requiring it to pay $264.2 million.

In June 2009, a group of lenders that included JPMorgan Chase, Associated Bank and Bank of America sued Oak Park-based bank holding company FBOP Corp., alleging nonpayment of a $250 million loan. All of FBOP’s banks, including Park National, failed in October 2009.

Documents filed in U.S. District Court in the Northern District of Illinois this week said FBOP consented to the entry of the judgment that will require it to pay $264.2 million to the bank group.

Lawyers in the case couldn’t be reached for comment late Friday afternoon.

Parties signing the consent judgment include FBOP Chairman Michael Kelly.

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