|By Tim Sheehan, The Fresno Bee,
Calif.McClatchy-Tribune Regional News
July 16, 2010--A bank is suing the owners of Fresno's Piccadilly Inn hotels, asking a judge to order a foreclosure on three of the properties because of $27 million in unpaid loans.
Far East National Bank sued Monday in Fresno County Superior Court. The bank originally made three loans worth a total of $28.7 million in March 2007 to the companies that own the Piccadilly Inn on West Shaw Avenue, the Airport Piccadilly Inn and the Piccadilly Inn Express.
In court records, the bank says the owners are in default because they've made no loan payments since November 2009.
Officials with Piccadilly and Regis Hotel 1 LLC, a Dallas company that operates the three hotels along with the Piccadilly Inn University, did not return calls Thursday to comment.
In court documents, attorneys for Far East National Bank said the loans were secured by deeds of trust and other guarantees against the three hotels. They said that Art Piccadilly Shaw LLC, Piccadilly Airport LLC and Art Piccadilly Chateau LLC and affiliated companies breached their agreements to make the loan payments.
The bank is asking a judge to appoint a receiver for the three hotels and to order a foreclosure sale with proceeds going to repay the unpaid loans and interest.
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