- 11 -
longer a partner in Second Street, contained financial analyses
of Mr. McDaniel and Ms. McDaniel based on the most recent fi-
nancial statements that they provided to the Bank, and stated
that "The bank will not release McDaniel's and Parker's guar-
antees."
In a written internal report dated July 1993, Mr. Martens
recommended that the Second Street loan remain in so-called
accrual status pending completion of Mr. Parker's bankruptcy
proceeding. That report stated in pertinent part:
The loan has matured. Guarantor Parker has filed a
personal Chapter 11 bankruptcy. The Reorganization
Plan has not yet been confirmed. The Plan proposes to
give Parker's interest in the subject property to the
other remaining guarantor, Palermo. Palermo intends to
dissolve partnership and refinance loan upon final
approval of the bankruptcy court. The General Bank has
indicated a desire to retain the loan and they consider
Palermo to be a desirable banking customer. However
the General Bank will not take the loan until Parker's
bankruptcy has been resolved and Parker removed from
the debt. The loan will remain past due pending com-
pletion of Parker's bankruptcy.
* * * * * * *
The guarantor Palermo has significant liquidity and
personal income to support any operating deficiency.
The other guarantor Parker provides no support to the
loan because of his impending bankruptcy.
* * * * * * *
Following the final resolution of Parker's bankruptcy,
Palermo will receive sole ownership of the subject
property. This action is expected to be completed
9/93. Palermo has strong financial capacity to per-
sonally support the loan. The general bank has in-
dicated a desire to retain Palermo individually and
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011