WAC Negotiates Forbearance Agreement for CT Retail Furniture Company
November 2, 2015
As part of its consulting practice, Worth Avenue Capital, LLC is pleased to announce that it successfully closed a Forbearance Agreement for a Connecticut based retail furniture company that has been in business since the 1950’s. Specifically, WAC’s client has an existing $200,000 commercial loan with a Connecticut based community bank that reached its maturity date. The bank subsequently called the loan seeking immediate full repayment of the debt.
Since the borrower was unable to fully repay the loan at this time, WAC was retained by the company and negotiated a debt restructuring of the loan with the bank that is characterized by monthly principal and interest payments as well as a two year Forbearance Agreement on behalf of the borrower. WAC worked in conjunction with its legal counsel who was brought in once the negotiations were finalized to review and sign off on the loan documents in the transaction.
A Forbearance Agreements is a vital tool for a small business that is no longer in good standing with a bank who is one of their creditors. The Forbearance Agreement acts as an “insurance policy” for the small business and, provided that the business adheres to the terms and conditions of the agreement, ensures that the bank cannot begin a lawsuit or litigate against the small business for the full term of this agreement.
By closing this transaction, WAC enabled their client to avoid costly, stressful, and protracted litigation by the bank and also allow this business to repay the loan over time without totally destroying the company’s cash flow.
Recent Posts
How Private Second Mortgages Are Helping Real Estate Investors Scale Faster
In today’s competitive real estate environment, access to capital can make or break an investment opportunity. As traditional lending timelines become a barrier...
Worth Avenue Capital Welcomes Noah Luff as Loan Originator
March 16, 2025, Fort Lauderdale, FL – Worth Avenue Capital (WAC) is pleased to announce the addition of Noah Luff as its new...
Spring 2025: Is Now the Right Time to Buy Investment Property? (And How to Get the Right Loan)
Spring has historically been the most active season for real estate, and 2025 is shaping up to be no exception. With more properties...