PNC Bank has filed lawsuits in Fayette (Lexington) Circuit Court against two major Thoroughbred operations, contending that Buck Pond Farm and the McKathan Brothers Farm are in default on outstanding loans.
The suit against Buck Pond Farm also names Douglas Arnold and Karen Arnold individually and contends the parties are in default on two different loans. The complaint states that Buck Pond and the Arnolds owe PNC $505,499.99, plus accrued interest on the unpaid principal, stemming from a note that was initially $825,000 when taken out in May of 2008.
PNC also claims Buck Pond and the Arnolds are in default on another note of $800,000, also executed in May 2008, with $432,766.67, plus accrued interest on the unpaid principal, as of Feb. 2.
The suit against McKathan Brothers also includes James B. McKathan Jr. and Kevin William McKathan individually. The complaint states that the brothers, whose operation is based in Ocala, Fla., are in default on a loan initially taken out in 2007 and subsequently renewed, with an outstanding amount of $499,778.88 plus interest on the principal amount, as of Jan. 26.
The loans in question were obtained from National City Bank, which was subsequently acquired by PNC.
The suits seek judgment in favor of PNC and a declaration that the bank has enforceable liens on horses, stallion seasons or shares and other interests, that were pledged as collateral on the loans.