Bank sues Shilo Inns, owner over loans
Friday, March 30, 2012
PORTLAND, Ore. (AP) -- A California bank has sued Shilo Inns and owner Mark Hemstreet, saying he and three of his inns defaulted on loans of $5.2 million in Seaside and Newberg and at the Rose Garden in Portland.
The federal court suit says Hemstreet also missed interest payments on a $5 million line of credit.
The Oregonian reported (http://bit.ly/Hz4Ub8 ) that California Bank & Trust asks for a receiver to take possession of the properties.
The company's general counsel, Wes Raborn, says Shilo is confident it can work out a solution with the bank.
Hemstreet founded Shilo Inns in 1974. In the 1990s, he was prominent in Oregon politics, providing financial backing for Republican legislative candidates and a ballot measure to limit property taxes.
Shilo currently lists 43 locations in 10 western states.
Information from: The Oregonian, http://www.oregonlive.com