Many Tennessee business owners can relate to others throughout the country who say they experienced financial distress during the past year. Owners of a popular night-life spot in another state reportedly fell behind on an $85 million debt they owed on their loan. The situation has prompted lenders to file a foreclosure petition against the business.
The enterprise held a key role in uptown restoration
The business in question is a multi-faceted building that contains numerous retail and entertainment locations, such as a bowling alley, conference center and movie theater. While ownership has changed hands throughout a 13-year history, the enterprise is known for having helped rebuild a thriving night-life in the area. This is not the first time, however, that financial distress and legal issues have arisen for the venue, which has hosted the Democratic National Convention, NBA sporting events and CIAA parties.
New owners gained control of the business after bankruptcy
Just two years after its grand opening in 2008, the initial lender opened foreclosure proceedings against the business owners at the time, who owed more than $90 million for a construction project at the site. The owners were able to halt the foreclosure by filing a bankruptcy petition in court. More legal problems later arose, during which a federal judge ordered the original developer to give up ownership of the property.
A new lawsuit filed last week
As years passed, the owners of the establishment have experienced times of prosperity and times of economic distress. The latter appears to be a current status in light of the fact that lenders say the business owes them $85 million and are calling in the loan. Any Tennessee business owner who is facing similar financial crisis may have debt relief options available to help avoid foreclosure. It is a good idea to seek support from an experienced bankruptcy law attorney in such circumstances, rather than trying to resolve such issues alone.