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Old 09-05-2007, 08:15 AM  
Trixxxia
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Join Date: Aug 2004
Location: Montreal, Canada
Posts: 5,600
Quote:
Originally Posted by ClimaxXx View Post
If you had a little more than 2 weeks... different story... In your case... you're prolly toast.
Not necessarily. If the owner knows that the business can come out of it say in a few months and start remaking payments - a good lawyer can most likely get proceedings delayed.

It's in a bank's best interest to continue to collect interest acrueing loans. If they have to reposess the business, it will cost them trustees, lawyers, continue to pay staff & operational costs until they find a buyer. They also have to make deals with the other creditors and all of this adds up. If the owner has a comeback plan & can make deals with creditors & a payback plan with the bank, they would much rather make a long-term deal than take it back. If the actual value of the business is 3-4x the value of the loan - they may take it back incur the costs and resell it undervalue.
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