A Manitoba credit union is suing former Winnipeg mayor Sam Katz for more than $80,000 in connection with a loan the mayor had for a restaurant he owned.

Assiniboine Credit Union filed the claim April 1, 2015 against Katz regarding a loan he took out in 2009 for the restaurant Hu's Asian Bistro Inc.

The statement of claim alleges Katz was president, director and shareholder of Hu's Asian Bistro when Hu's got the loan on July 9, 2009.

The restaurant is no longer in operation on Ellice Avenue, but corporation records show Katz is still president of Hu's Asian Bistro Inc.

The credit union is seeking $87,500 plus interest, alleging the loan is in arrears because Hu's Asian Bistro failed to pay when the money was demanded.

The statement of claim alleges that in addition to taking out the loan for $350,000, Katz had also signed a July 9, 2009 guarantee for the loan in the event there was a default.

The allegations have not been proven in court.

Katz was not available to comment on the lawsuit on Wednesday, and Assiniboine Credit Union declined further comment.

Jason McRae-King, who served as chief financial officer for the restaurant, said that in 2012, Hu's Asian Bistro ceased operating and sub-leased the building on Ellice Avenue to another company that operated a restaurant there.

McRae-King said the other company was to pay the loan but left the Ellice Avenue premises last month, resulting in the credit union demanding payment from Katz.

The restaurant had been a source of controversy for Katz during his time as mayor because he held a 2010 Christmas party for city councillors at the restaurant and paid the bill of nearly $3,000 with taxpayer money.

That prompted Winnipeg restaurateur Joe Chan to file a declaration in court alleging Katz was in a conflict of interest.

Chan's case was ultimately dismissed in court in 2013, but the judge called Katz's actions "bad political and ethical behaviour."

Katz had filed documents saying he was unaware of how the restaurant bill was paid after he submitted the invoice to the mayor's office.

Katz was elected mayor in 2004 and did not seek re-election in October 2014.