California company sues PremierWest over $270,000 credit line cutoff in April

An Anderson, Calif., company has sued Medford-based PremierWest Bank after the company's $270,000 line of credit was cut off in April.

Plum Valley Inc. President Don Frank, whose company makes wood products for upscale mountain homes, told the Redding (Calif.) Record Searchlight he had never missed a loan payment during the four years he was a customer.

Frank told the Record Searchlight that the line of credit was critical to operations.

"If you don't have the capital in order to purchase the raw material, in order to manufacture so you can sell the product, it's like putting two bullets in a six-shooter," he said.

PremierWest Chief Executive Officer Jim Ford told the Record Searchlight he couldn't comment on why PremierWest canceled Plum Valley's credit line.

"We intend to defend our position vigorously, and we are very confident that it will be found that ultimately the bank acted in good faith," Ford said.

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