26 Aug Closes $750,000 Bank Workout for CT Based Real Estate Developer
August 26, 2013
Worth Avenue Capital Closes $750,000 Bank Workout for CT Based Real Estate Developer
Worth Avenue Capital, LLC is pleased to announce that it just successfully closed a $750,000 bank workout for a Connecticut based real estate developer. WAC negotiated an extension of an existing Forbearance Agreement for its client as well as a restructuring and pay down of the outstanding commercial loan for the client. WAC negotiated this transaction on behalf of its client with a U.S. subsidiary of a European based bank holding company.
Despite the fact that WAC’s client had paid down this outstanding commercial loan from $3,000,000 to $750,000 over the course of several years on a real estate development project and had never been in payment default, the bank who originated the loan became very hostile with WAC’s client and had placed tremendous pressure on the client to pay off the loan in full. In addition to the undue pressure that was placed on the client, the bank was also charging the client with exorbitant forbearance fees that became quite onerous for the client.
Once WAC was retained by the client, it was able to negotiate a settlement with the bank within a few weeks that included reduced forbearance fees thus allowing the client to continue to develop this real estate project with reduced costs and without any interference from the bank.
This News was also published in The Commercial Record. Please see link to the article below: