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| Borrower | Company engaged in building a science center and entertainment complex in New London, CT. | |
| Loan | A two-year, $2,000,000 loan at 15%. | |
| Collateral | A first mortgage lien on 22.63 acres on the waterfront in New London, Connecticut. | |
| Guarantors | the principals of the borrower. One is a former submariner and Navy instructor in advanced computing and equipment maintenance, and the other was a vice president at Analysis & Technology, Inc. | |
| Purpose | The loan was for temporary finance while the operators sought construction and permanent financing. When they obtained $20 million of permanent financing, they planned to build an 89,900 square foot educational science center and a 75,000 square foot Marriot hotel. In subsequent phases they planned to expand the science center and add an IMAX theater, retail shops, and possibly a marina. | |
| Exit strategy | The borrowers expected to pay us off from their permanent financing. | |
| Outcome | The borrowers were unable to line up finance, and the loan went into default after one year. The State of Connecticut (which had a junior lien on the land) bought out our loan for 100% plus interest. |
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