Guam Industrial Services and the Bank of Guam agreed this week to permanently dismiss a court case related to a disputed $ 32 million loan.
Lawyers for the company and the bank filed a “dismissal clause” with Judge Arthur Barcinas of the Superior Court of Guam on Thursday.
Company lawyer Patrick Civille told Barcinas earlier this week that a deal was being finalized with the bank. The nature of the agreement is unclear and it has not been filed with the court.
In May, the bank planned to sell the Pacific Star Resort & Spa and the Island Equipment Company, which were pledged for the 2016 loan to Guam Industrial Services, but Barcinas issued a temporary restraining order, blocking the sale.
Guam Industrial Services borrowed the money to repay existing loans from other banks and to rebuild its “Big Blue” floating dry dock at a shipyard in China.
According to the bank, Guam Industrial Services failed to honor its loan by failing to promptly inform the bank that a Chinese court seized the dry dock last year over a $ 10 million payment dispute with the ship repair business.
As a result, the bank “ramped up” the loan at the end of last year, demanding full payment of the balance. Guam Industrial Services did not pay, so the bank announced its intention to sell the hotel and Island Equipment.
Civille told the court in May that Guam Industrial Services and the bank were discussing a forbearance and “finance to go” deal earlier this year, but the deal fell through and the bank continued with its plan. sale of properties.
Barcinas, in a brief hearing on Friday, said he would honor the stipulation to drop the case.
