An Alabama bank is suing SamCorp and various members of the Sambrano family for $4 million, claiming that it should take first place among those lining up to be paid following the apparent demise of the company, once one of El Paso's foremost contractors.
The lawsuit, filed last week, also names City Bank and the Hartford Insurance.
The Alabama bank, Compass, is suing SamCorp and three members of the Sambrano family for return of a $4 million note and accrued interest, and is seeking a declaratory judgment "because an actual case or controversy exists between Plaintiff and one or more of the Defendants concerning the lien rights of the Plaintiff."
The note was issued by State National Bank on Sept. 15, 2007, according to an exhibit in the lawsuit, and secured by property (Lot 3, Block 20, Mesa Hills Unit Seven), the business (inventory and accounts receivable), security interest in a collateral investment account, and assignment of a $1 million life insurance policy on Steve Sambrano. [Editor's note: The previous sentence was corrected at 2 p.m., July 29, 2008. A previous version incorrectly described the street address for the property that secured the note.]
The lawsuit states that Humberto Sambrano, the father of Steve Sambrano, died in June, 2007.
Humberto Sambrano was a principal of SamCorp, and was indebted to City Bank, the lawsuit states. Following his death, Steve Sambrano and Adelina Sambrano, Humberto's wife and another principal in SamCorp, requested the revolving credit line of $4 million from State National. Adelina Sambrano, as trustee of Humberto's estate, "was vested with the power to borrow money from any source, purchase property on credit, and mortgage, pledge or in any other manner encumber all or any part of the assets of the Estate of Humberto F. Sambrano," the lawsuit states.
By the end of 2007, the lawsuit states, the Sambranos had used the full line of credit. In January, according to the lawsuit, "it was discovered that, contrary to the express intent" of the loan, the line of credit had not been used to pay back City Bank. On Jan. 23, State National asked for immediate repayment.
The Sambranos provided additional collateral in exchange for a 90-day grace period, after which Compass became the "successor" to the debt.
Compass now wishes to liquidate the assets to recover the debt, but City Bank has threatened legal action, states the lawsuit. In addition, there is "significant potential that outstanding and unsatisfied claims," including from insurance underwriter Hartford Fire Insurance Company, will be filed.
The lawsuit is just the latest blow to the company.
Steve Sambrano was indicted in late March on charges of bribing school officials in South Texas.
In May, SamCorp appeared closed, and the company defaulted on millions of dollars in projects with the city of El Paso and UTEP, and lost other multi-million dollar projects with local school districts.
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