Case Study #2

The Client:

A Limited Liability Company (LLC)

The Situation:

This group of investors, comprised the members of a limited liability company that owed the bank $5,820,000 principal, $245,000 interest, and $18,000 penalty charges, all secured by a San Diego-area office building.  After extensive negotiations continuing over many months between the borrowers and the bank proved fruitless, the bank commenced foreclosure proceedings and requested the appointment of a receiver to take control of the property.

The Solution:

Peak Asset Solutions was retained to negotiate a workout arrangement with the bank as an alternative to foreclosure. We successfully arranged for the sale of the loan to a third party for $4,000,000. The guarantee obligations of the individual investors were conveyed with the note. Subsequent negotiations resulted in the release of those guarantees. This transaction saved our client $2,083,000.