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Bank Sues Shilo Inns & Its Founder
From Associated Press
A California bank has sued Shilo Inns and owner Mark Hemstreet, saying he and three of his inns defaulted on loans of $5.2 million in Seaside and Newberg and at the Rose Garden in Portland. The federal court suit says Hemstreet also missed interest payments on a $5 million line of credit.
The Oregonian reported (http://bit.ly/Hz4Ub8 ) that California
Bank & Trust asks for a receiver to take possession of the
properties. The company's general counsel, Wes Raborn, says Shilo is
confident it can work out a solution with the bank.
Hemstreet founded Shilo Inns in 1974. In the 1990s, he was
prominent in Oregon politics, providing financial backing for
Republican legislative candidates and a ballot measure to limit
Shilo currently lists 43 locations in 10 western states.