Can you believe a smart business man like George Gillett would take out a loan at 19 percent interest in a world where two or three percent interest was, at the time, the going rate?

Apparently he did just that.

U.S. lending firm Mill Financial today sued Gillett  for breach of guarantee, claiming the former Canadiens team owner is peronally liable for a $117 million dollar 2008 loan connected to his investment in the Liverpool Football Club.
The loan allegedly came due in August and Mill Financial notified Gillett that the loan was in default.
Gillett, reached on Thursday night, declined to comment on the lawsuit. Mill Financial could not be reached for comment.
The financial circus involving Gillett and his Liverpool FC partner Fred Hicks has endured for weeks. They lost control of the football club when the Bank of Scotland forced the sale of the team to Boston Red Sox owner John Henry’s New England Sports Ventures at a price that was lower than expected.

At the same time as the Liverpool fiasco was going on, Gillett’s Nascar venture, Richard Petty Motorsports, has reportedly been in financial trouble.

Gillett did make a small fortune selling the  Canadiens to the Molson consortium in 2009. Most of close to 300 million dollars in profit has been eaten up by the disastrous investments in Liverpool FC and Richard Petty NASCAR Racing.