Northwestern Bank has filed suits against an interlocking group of companies linked to one family in an effort to recoup $30 million in non-performing loans for various real estate and other projects that account for most of the northern Lower Peninsula bank's bad loans.
The Traverse City Record-Eagle reports that the Nielson family's businesses are one of Northwestern Bank's major commercial customers. The newspaper says the bank filed suit in 2011 against a dozen limited liability companies involved with Generations Management LLC and Generations Realty.
The bad debt accounts for most of Northwestern' s $50 million of non-accruing loans, those in which interest and principal payments haven't been made in 90 days.
The bad loans have led to downgrades of the bank's ratings despite its overall profitability.