Judge Grants Metro Relief on Bank Deal

AIG guaranteed financing deal between KBC, Metro

Monday, Nov 3, 2008  |  Updated 6:39 AM EDT
View Comments (
)
|
Email
|
Print
Judge Grants Metro Relief on Bank Deal

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.

Get the latest headlines sent to your inbox!
View Comments (
)
|
Email
|
Print
Leave Comments
NBC4's Camp4Kids
NBC4 launched Camp4Kids in 1993,... Read more
Follow Us
Sign up to receive news and updates that matter to you.
Send Us Your Story Tips
Check Out