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McNall Ordered to Pay Bank $2.1 Million : Hockey: King owner defaulted on personal loan received from a Torrance bank, judge rules.

March 26, 1994|JAMES BATES | TIMES STAFF WRITER

King owner Bruce McNall has been ordered by a Los Angeles Superior Court judge to pay a Torrance bank $2.1 million for defaulting on a personal loan, court documents show.

The judgment is the latest setback for the sports mogul in what has become a growing list of business-related problems.

Court papers show Judge John P. Shook's judgment was entered last week in favor of Republic Bank, which sued McNall in October. The bank alleged that McNall defaulted on the unsecured promissory note when he failed to pay $1.875 million last May as required.

McNall officials have previously said a settlement with the bank was in the works. Court documents show that the bank received a judgment for the entire amount it was seeking, along with court costs, fees and interest that accumulates from March 15 until the judgment is paid.

In a statement, a McNall spokesman said: "The matter has been concluded amicably, and we will address the satisfaction of the judgment shortly."

Documents filed by Republic last fall included a sworn statement from Republic Vice President Lee Marzahl, who referred to McNall's lack of ability to quickly convert assets into cash. In interviews, McNall officials have denied he is experiencing liquidity problems.

McNall was sued last week in federal court in New York by Dutch-owned European American Bank for allegedly defaulting on a separate loan.

European American is alleging McNall owes $27.8 million in principal on a loan, and at least $442,864 in interest. McNall officials say the European American lawsuit is without merit, adding that McNall disputes that the debt even exists.

McNall is trying to wrap up a $60-million deal to sell 65% of the Kings to telecommunications executive Jeffrey Sudikoff and partner Joseph Cohen. The sale is largely to help McNall rid himself of a loan with Bank of America, which extended his businesses $90 million in loans and credit.

McNall has consistently denied that he is experiencing financial problems. Those familiar with his finances say he has been especially hard hit by such factors as a decline in the rare coin business, a high debt level and losses from his ownership in the Toronto Argonauts football team.

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