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Properties and Twenty Mile to obtain new funding to liquidate
Commercial’s and its subsidiaries’ (Empire and ESL) positions in
the joint ventures for as much cash as possible. However,
Commercial realized that the collateral real property had
declined in value. Consequently, Commercial was willing to
accept less than the outstanding balances of the loans in order
to liquidate its interests in the ventures.
Acceding to Commercial’s wishes, in late 1987, the investing
partners negotiated with Sun Savings & Loan Association (Sun
Savings) for financing to liquidate Commercial’s interests.
Although Sun Savings was willing to finance the liquidation of
Commercial's interest in the partnerships, the investing partners
were not willing to pay the minimum amount of cash that
Commercial would accept. To adjust for the shortfall, Commercial
suggested that certain of its Denver area apartment mortgages
(apartment mortgages) be purchased in connection with the
transaction. These negotiations, however, did not result in an
agreement.
In March 1988, representatives of the investing partners
entered into negotiations with Capitol Federal Savings & Loan
Association (Capitol Federal) to arrange for financing to
liquidate Commercial's joint ventures interests. In a letter
dated April 19, 1988, Commercial made a proposal to Mr. Winn that
Commercial liquidate its creditor’s position through Empire and
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Last modified: May 25, 2011