The firm backing Thomas Enterprises for the development of Railyards Project in Sacramento filed a notice of default against it because of the inability by the developer to pay the loan payment. This might be the first step to the foreclosure of the company.
The Thomas Enterprises are in talks with their lenders the Inland-American Real-Estate Trust to give it time to pay the loan payments and are hoping that an agreement will be reached very soon. The head of the company Suheil Totah is very confident that they will see a positive outcome of the talks. The notice was filed by the lending trust to protect its interests in the company.
The Thomas Enterprises have borrowed somewhere around 175 million dollars from Inland-American Real-Estate Trust by keeping the 240 acre land at the railyard site as a security. But if the talsk fail to see any positive outcome the Inland-American Real-Estate Trust has the power to sell the property after 120 days after the notice of default.
Thomas Enterprises Defaults loans
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