Bank Sues Robert Campeau: The National Bank...

Bank Sues Robert Campeau: The National Bank of Canada is suing Campeau Corp. Chairman Robert Campeau for $50 million to reclaim losses from an unpaid personal debt. In papers filed last week in the Supreme Court of Ontario, Canada, the bank said it was seeking funds from the Toronto entrepreneur to recover some of its losses on a $150-million loan Campeau defaulted on last month. The National Bank of Canada is the third Canadian bank to sue Campeau, whose Federated Department Stores and Allied Stores retailing divisions sought Chapter 11 protection from creditors in U.S. Bankruptcy Court last month. Campeau acquired both retailers in buyouts that depended heavily on junk bonds, and the companies have been unable to generate enough cash to pay Campeau’s $7.5 billion in debt.