Lender Trying To Push Titan Loan Into Involuntary Bankruptcy

24th Jun 2010 17:23

By Rachel Feintzeig Of DOW JONES DAILY BANKRUPTCY REVIEW A lender is looking to push Titan Loan Investment Fund LP into bankruptcy protection three months after suing to recover funds it says Titan owes under a $75 million loan. The Royal Bank of Scotland PLC (RBS, RBS.LN) Wednesday launched an involuntary Chapter 7 petition against Titan Loan, a Fort Washington, Pa., private-equity firm. According to papers filed with the U.S. Bankruptcy Court in Wilmington, Del., Royal Bank of Scotland holds claims of at least $19 million against the company. The filing comes on the heels of a March lawsuit from Royal Bank of Scotland filed in New York Southern District Court against Titan Loan. Royal Bank of Scotland says the lawsuit stems from Titan Loan's "breach and blatant disregard" for a loan agreement the two parties entered into in March 2006. Royal Bank of Scotland had agreed to provide Titan with $75 million "to finance its acquisition of mortgages and other real estate-related loans," according to court papers. But by this past March 15, Titan Loan had failed to make payments it committed to under the deal, Royal Bank of Scotland said. In the lawsuit, the bank asserts that Titan Loan is liable for nearly $20 million plus additional fees and interest. Representatives for Titan Loan did not return calls for comment Thursday morning. According to its website, Titan Capital Investment Group managed the Titan Loan private-equity fund, "dedicated to the acquisition of commercial real estate loan assets throughout the United States." The lawsuit specifies that Titan Loan used the bank's funding to purchase mortgage loans on properties in North Carolina, Ohio and Michigan. Judge Kevin Gross has been assigned to the bankruptcy case, numbered 10-12023. Under bankruptcy rules, Titan has 20 days to respond to the involuntary petition. (Dow Jones Daily Bankruptcy Review covers news about distressed companies and those under bankruptcy protection.) -By Rachel Feintzeig, Dow Jones Daily Bankruptcy Review; 267-639-6000; [email protected] (END) Dow Jones Newswires June 24, 2010 12:23 ET (16:23 GMT)