A bank holding a $1 million loan to the owners of a south-side steakhouse is accusing them of defaulting on the note and is seeking to foreclose on the restaurant.
Pasadena, Calif.-based OneWest Bank is suing the Polo Club, 4302 S. East St., the former site of a Steak and Ale restaurant.
Steak and Ale’s Plano, Texas-based owner went bankrupt in July 2008. The owner, S&A Restaurant Corp., is listed as a defendant in the foreclosure.
La Jolla Bank made the $1 million loan in December 2006. OneWest Bank inherited the loan after the Federal Deposit Insurance Corp. closed La Jolla in February 2010.
Metromedia Restaurant Group purchased S&A Restaurant in 1988 and five years later merged the company with Metromedia Steak Houses chains Bonanza and Ponderosa. All three chains operated under the S&A Restaurant brand. Metromedia closed the Steak and Ale restaurants in July 2008.
Polo Club’s owner, Carmi Bond, re-opened the South East Street location under the new name in December 2008. Reached by phone, Bond said he had no comment on the foreclosure attempt.
Principal remaining on the loan is $926,243, according to the suit.