Bank vs. Farm Manufacturing Business
Minneapolis, MN litigation attorney Jesse Kibort talks about a specific case he remembers that was intense.
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I have a client that manufactures different equipment for farmers, and it’s a very specific type of equipment. He had up to, I think, 35 employees at the time that he came to me, and at the time he came to me, the bank he had been dealing with threatened to not only not renew his loan coming up at the end of the year, but pull it early, which would threaten all of his employees and his ability to run the business. When he came to me, the bank had already tried to freeze assets in their bank accounts and was threatening to bring a lawsuit against him, not only to liquidate all of the collateral, but go after him and his wife for the deficiency personally. So when we got the case, we immediately got into a dialogue with the bank. It tends to be attorneys that I know, ‘cause I’ve dealt with them over the years, and we were able, over a several-month period, to not only negotiate a new loan, but release them from any personal deficiency, and the release was probably around $2.5 million, so it really avoided these people not only losing their company, but it also avoided a bankruptcy, which would’ve been inevitable.