Former Winnipeg Mayor Sam Katz Sued by Credit Union for Restaurant Loan

Former Winnipeg Mayor Sam Katz Sued by Credit Union for Restaurant Loan

By The Canadian Press

Sam Katz
Mayor Sam Katz addresses a crowd in Central Park on Friday, June 20, 2014. (HOWARD WONG / CHRISD.CA FILE)

WINNIPEG — Former Winnipeg mayor Sam Katz is being sued by a Manitoba financial outlet over the alleged non-payment of a loan for a restaurant he once opened.

Assiniboine Credit Union filed a statement of claim on April 1st regarding money borrowed for Hu’s Asian Bistro.

Katz, who is the president, director and shareholder of the business, is accused of being in arrears on what’s left of the 350-thousand-dollar loan he took out in 2009.

The claim alleges that in addition to borrowing the money, Katz also signed a guarantee for the loan in the event there was a default.

Jason McRae-King, who served as chief financial officer for the restaurant, says the bistro closed in 2012 and sub-leased to another company that operated a restaurant at the location.

McRae-King says the other company was to pay the loan but left the premises last month, resulting in the credit union demanding payment from Katz.

A statement of defence has not been filed and the allegations have not been proven in court.

CP - The Canadian Press


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