Judge Grants Metro Relief on Bank Deal

AIG guaranteed financing deal between KBC, Metro

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    NEWSLETTERS

    DCist
    A federal judge has granted temporary relief to Metro after a Belgian bank threatened to immediately collect $43 million from the transit agency.

    WASHINGTON -- A federal judge granted temporary relief to Metro after a Belgian bank threatened to immediately collect $43 million from the transit agency.

    KBC Group requested the money following the collapse of insurance giant American International Group, which had guaranteed a financing deal KBC made with Metro in 2002.

    The bank's demand would require it to make immediate cuts and could prompt other banks to collect on similar deals, Metro said. The agency has warned the transit agencies around the country could face the same predicament.

    U.S. District Judge Rosemary M. Collyer said Thursday she will hold a hearing within 10 days to give the parties a chance to argue more about the merits of the case.