Chicago Bank sues Gateway Hospitality seeking $2.3 million

Kelly Holleran Aug. 17, 2012, 1:44am


A bank claims that a Collinsville hospitality company has failed to repay it more than $2 million.

The National Republic Bank of Chicago filed a lawsuit Aug. 10 in Madison County Circuit Court against Shrinathji Hospitality doing business as Gateway Hospitality, Bharat Choksi, S.R. Muthy Vamaraju, Chellayamma Vamaraju and Narendra R. Parikh.

In its complaint, the National Republic Bank alleges it lent Gateway Hospitality $2.3 million on April 5, 2002. Since then, however, Gateway has failed to make the required payments on the loan, according to the complaint.

"As of June 12, 2012, there is due and owing to Plaintiff the amount of $2,270,078.59 in principal, $35,496.55 in accrued interest with a per diem of $331.05; $28,364.94 in late charges, reasonable attorneys' fees and costs," the suit states.

The remaining defendants guaranteed repayment of the note if Gateway defaulted on it, the complaint says. However, they have failed to pay the required amounts, the National Republic Bank claims.

In addition to the money it says the defendants owe it, the National Republic Bank seeks costs, attorney's fees and other relief the court deems just.

Sandra A. Franco of SmithAmundsen in Chicago will be representing it.

Madison County Circuit Court case number: 12-L-1255.

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