City National Bank of West Virginia on Dec. 26 sued Kentucky Fuels Corp. and James C. Justice Cos. Inc., alleging missed loan payments.
The balance in question is related to an August 2016 lease restructuring agreement for $4.35 million, scheduled to be fully repaid by June 15, 2021. The bank claims that, since October, Kentucky Fuels has stopped making payments in accordance with the terms. The loan was fully guaranteed by the James C. Justice Cos., with the amount to be collected from the guarantor amounting to $3.8 million.
The remaining book balance on the loan as of Dec. 26 is approximately $850,000, due to the previous recording of a loss. No further significant charge-offs or losses are projected.
Charleston, W.Va.-based City National is a subsidiary of City Holding Co.