Dental care center owner says it will pay back $25M in loans
Dental Care Center owner said he will repay $25 million in loans, a new court filing showed.
The company that owns the former Dental Center of Easton, Pa., filed a lawsuit in state court Tuesday against the city of West Chester, saying it owes $10 million to the state and $10.6 million in federal loans.
In a letter to the city’s mayor and city administrator, the company said that “Dental Center has failed to comply with its obligations to pay its loans and owes a $5.7 million judgment against the City of Westchester” and is considering filing a claim with the US Bankruptcy Court of Delaware.
The loan default came after the company filed a $22 million bankruptcy in September 2015.
It also owes $3.8 million in interest on loans it made to other companies and has been unable to make payments to creditors.
A court filing in April said the company had no other creditors in bankruptcy court and said the city owes it $20.5 million in unpaid loans.