Case Study #3

The Client:

A Limited Liability Company (LLC)

The Situation:

These investors, the members of a limited liability company, owned and occupied a warehouse in Los Angeles where they conducted a wholesale business. Their bank loan was ten months past due and the bank was owed $1,700,000 principal, $106,000 interest and $16,000 late charges. The members of the LLC had signed full-recourse personal guarantees.

These investors hadn’t performed on their previous promises made to the bank; and they didn’t provide the financial information requested of them. As such, they lost all credibility with the bank which had commenced foreclosure of the property. By the time Peak Asset Solutions became involved, the foreclosure trustee had already set a date for the sale of the property.

The Solution:

Peak Asset Solutions quickly pulled together all the information the bank had requested and immediately developed a rapport and credibility with the bank officers who had previously abandoned any hope of successfully working with the borrower.  We succeeded in negotiating a forbearance agreement between the LLC and the bank by which the borrower was afforded the opportunity to bring the loan current over an extended period of time.  In turn, the bank deferred the foreclosure sale thus allowing our client to continue operating its business on the premises.