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Merchant Angry Over Tunneling to Get MTA Loan

The Metropolitan Transportation Authority has promised an interest-free $17,000 loan to save the owner of a Hollywood restaurant, who says she was bankrupted by subway digging, from losing her lease.

It is the first such rescue since tunneling began disrupting businesses in Hollywood and the San Fernando Valley two years ago.

Doreet Hakman, owner of the Snow White Cafe in the 6700 block of Hollywood Boulevard, gained a measure of notoriety in recent months for tearful appearances at MTA board meetings and a short hunger strike at City Hall. She blamed subway tunnel construction for slashing her income by 75%.

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Two weeks ago, she complained bitterly that she would lose her lease if she did not receive help by Tuesday. That’s when a federal bankruptcy judge was scheduled to decide whether to let her landlord evict her because she had not paid rent since December.

Her attorney said the MTA faxed a letter at 7 p.m. on Monday pledging to send $17,000 for rent.

An MTA spokesman said the action did not constitute an admission of liability.

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