News Release
May 3, 2002
for more information, contact:
Cj Sartor, Sartor Associates, Inc. 318/324-1644
BancorpSouth Bank and Stewart A. Cathey Reach Agreement
Monroe, LA. –
BancorpSouth Bank reached an agreement Thursday, April 25, 2002 with Stewart A. Cathey and Donna Barnhill Cathey in their suit regarding loans made to the Cathey’s business Stewart A. Cathey and Sons, Inc. While all those involved have agreed to keep terms and conditions of the settlement confidential, both a spokesman for BancorpSouth Bank and the Cathey’s expressed gratitude that each side had continued negotiations. "We commend BancorpSouth Bank for continuing to keep the lines of communication open and their efforts to try to reach an agreement," Stewart Cathey said. "We realize they only assumed responsibility for this case when they acquired First Republic Bank. Thanks to their willingness to explore all options at each stage, we were able to conclude this matter before going to court."
BancorpSouth Bank became involved in the case when it purchased the holding company that owned First Republic Bank on August 31,2000. Randy Burchfield of BancorpSouth Bank said, "At BancorpSouth Bank, we are pleased that this matter has been ended. Even though we had no direct responsibility for the disputed actions, we have worked diligently throughout the process to insure a just resolution for all parties involved. BancorpSouth Bank is firmly committed to upholding the rights of our soldiers, sailors, airmen, and marines under the Soldiers’ and Sailors’ Civil Relief Act and other applicable laws."
The settlement puts to rest any questions concerning the bank’s handling of interest charged Cathey’s company during the nine months Cathey was called to active duty for the United States military in 1996 and 1997 as defined by the Soldier’s and Sailor’s Civil Relief Act. The agreement cancels a federal court trial that was set to begin May 6, 2002 in Monroe, Louisiana. All parties have agreed to make no further statements concerning the settlement.