PNC Sues Borden Dairy, Past Owner Over Claims on Reserve Account

PNC Bank NA sues Borden Dairy Co. on behalf of itself and KKR & Co., asking U.S. Bankruptcy Judge Christopher Sontchi to validate the lenders’ claims on a reserve bank account worth $26.7 million, court papers show.

• PNC and KKR, which together hold $275 million of Borden debt, have argued they have liens on the account
• Laguna Dairy SA -- Borden’s former owner and a co-defendant in the lawsuit -- disputes the lenders’ lien on the account, arguing it has an interest in the funds, per the court papers
• The account had a value of $26.7 million as of ...