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Trooien owes $23 million on aircraft loans
Bank of America has already repossessed the airplanes.
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A U. S. district judge has ruled that Jerry Trooien and his aircraft leasing businesses owe more than $23 million to Bank of America for defaulting on loans on airplanes that already have been repossessed by the bank.
An attorney for the St. Paul businessman said Tuesday that the amount doesn't reflect the planes' commercial value and could be reduced or eliminated if the planes are sold. George Eck said the bank has a legal obligation to try to sell the planes but that he doesn't believe they are currently on the market. Attorneys for Bank of America could not be reached for comment.
The aircraft firms are part of a business empire headed by Trooien, who has been in the commercial real estate business for more than 30 years as a developer and investor.
Judge Joan Ericksen Friday granted Bank of America's motion that Trooien owes the bank principal, interest and other fees under terms of loans issued in 2001 and 2007 for two planes. In June the bank sued Trooien for failing to make payments on the loans, which totaled $26.7 million.
Trooien already has complied with an order issued by Ericksen in August to return the planes to the bank. In the latest order, issued Friday, the judge turned aside Trooien's argument that also owing the bank money was "unconscionable because it amounts to double recovery." Ericksen also disagreed with Trooien's claim that the bank should only be allowed to collect a lesser amount after it sells the planes.
Daniel Kleinberger, a professor of business law at William Mitchell College of Law in St. Paul, said lenders that reclaim assets frequently ask to also be repaid money they're owed under loan agreements. "That's the entirety of the debt," he said.
Bank of America is the second lender to sue Trooien and his aircraft businesses for failing to repay loans. In June Ericksen ordered him to return planes, engines and other equipment to GE Capital after defaulting on loans totaling $21.4 million.
Susan Feyder • 612-673-1723
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