West Memphis business proprietors being sued for $4.1 million

26 11 2007

Bank of America is suing two businessmen who ran a West Memphis company in an attempt to collect $4.1 million.

Theodore M. Jenney of Holley, N.Y., and Stanley J. Chiras of Florida are the principals of Diaz Intermediates Corp., which produced chemicals that were supplied to Tetra Industries and other agriculture and pharmaceutical clients.

In September 2002, the company borrowed $6.5 million and eventually went out of business.

But Jenney and Chiras had each signed guarantees for half of the unpaid principal, plus any interest, court costs and other fees if Diaz defaulted on the loan. In January, the bank notified the two businessmen that the loan was in default. In May, BOA told Jenney and Chiras to pay off the loan, but they didn’t.

The bank has sued in U.S. District Court to collect the money.

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