Bank alleges man, two companies owe more than $4M on defaulted loans

A Chicago bank is suing over claims a $4 million loan is in default.

The National Republic Bank of Chicago filed a lawsuit July 15 in the Cook County Circuit Court against Rao K. Murukurthy, American Plastics Technologies Inc. and ASEP-Pack Technologies Inc., alleging breach of contract.

According to the complaint, the plaintiff loaned Murukurthy $337,500 in 2004, and more than $3 million to American Plastics Technologies in 2011, with Murukurthy executing a guaranty of payment.

The bank claims Murukurthy is in default on the first loan and owes it more than $187,800, plus interest and fees. It further alleges that ASEP-Pack Technologies, which in 2012 executed loan modifications on the American Plastics loan that is allegedly in default, owes it more than $4 million, plus interest and fees.

The bank is seeking slightly more than $4.68 million in damages, plus accrued interest, costs and expenses, and is being represented in the case by attorney Sandra A. Franco of Smith Amundsen LLC in Chicago.

Cook County Circuit Court Case No. 2014L007382.

This is a report on a civil lawsuit filed in the Cook County Circuit Court. The details in this report come from an original complaint filed by a plaintiff. Please note, a complaint represents an accusation by a private individual, not the government. It is not an indication of guilt, and it only represents one side of the story.