Delco Liable For $21.5M In Loan Default Case: Judge

Law360, New York (March 27, 2009, 12:00 AM EDT) -- A federal court has found bankrupt motor fuel distributor Delco Oil Inc. and its sole shareholder liable for more than $21 million after defaulting on a line of credit provided by commercial lender Capital Source Finance LLC.

In an opinion signed Thursday in the U.S. District Court for the District of Maryland, Judge Deborah K. Chasanow partially granted Capital Source's motion for summary judgment regarding the breach of contract claims in the suit, but denied summary judgment with respect to claims that Delco's former president fraudulently...
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