Türkiye's Savings Deposit Insurance Fund (TMSF) has secured a legal victory in the U.S. in a debt recovery case involving a school alleged to have links to the Gülenist Terror Group (FETÖ), according to a statement released by the institution on Tuesday.
The TMSF said the bankruptcy administration of Bank Asya, which is managed by the fund, prevailed in a lawsuit filed before the Kings County Supreme Court in New York seeking repayment of a loan extended to Brooklyn Amity School.
The court ruled that the school must repay the outstanding debt, along with accrued interest, related to a $15.5 million (TL 717.64 million) loan package provided by Bank Asya in 2011 for the purchase and renovation of school property.
According to the TMSF, the financing consisted of five separate loans that were granted with unusually favorable terms, including a 19-year maturity period and a four-year grace period before repayments were due.
The fund said court records showed that the loans were issued following a recommendation by Ali Akbulut, a former member of Bank Asya's board of auditors and one of its major shareholders.
