Bankruptcy filing links Fla. crisis, area banks

REGION

Several of the midstate's bestknown banks could lose millions of dollars as a result of extending credit to a Cumberland County construction loan provider.

Government documents and bankruptcy filings indicate the company, Yorktown Funding Inc., was involved in financing house construction in Lee County, Fla., in the mid-2000s, just as the region was becoming the epicenter of Florida's epochal housing bubble.

Yorktown, with offices at 1104 Fernwood Ave. in Lower Alien Township, filed for Chapter 11 bankruptcy Feb. 9 in federal court for the Middle District of Pennsylvania, listing assets of $31.6 million and liabilities of $40.8 million.

The company …