Memorialization continues; death and taxes are sure things thing life.
One of the memorial parks brought to us for rescue has huge debt to a cooperative bank. In the last 7 years, the original principal of 7 numbers has ballooned to 8 numbers. We went to the lender 3 years ago requesting for some relief. However, the owner for one reason or another did not follow up nor did any action to avert the foreclosure.
So we tried to look for remedies:
1. To help reduce the amount from 8 numbers fo only 7 numbers. However the new officer, wanting to look good to the boss, can only reduce the penalties by P2 million. This was generous, however, considering the lackluster performance of the park, the huge amount looks formidable still.
2. To let the foreclosure continue but challenge the bank's lack of authority over the franchise, or that the bank will have to put a memorial park company to manage the park. Or use the legalese that the rights of memorial park owners is superior to the foreclosure.
3. At one point, we thought, in the absence of other documents, that the mortgage was voidable, since there was no copy of the spa of the owner, in favor of the mortgagee, the company. The corporate officer owned personally the land that was mortgaged.
4. We consulted an international banker and consultant. He could not come up with new solution except to pay the bank
Finally we had no choice but come up with alternatives:
1. Go for the the low number
2. If not acceptable, give (and borrow) 1/2 of the amount stated in the SOA, and 1/2 at 12% per annum to be paid over 4 to 7 years.
We will run the numbers and the inputs of marketing. They will have investors day. and hopefully, they will be able to raise P1 milllion this month.
Results of the negotiation
The bank officer would not budge an inch on the amount to be paid. However, he was amenable to P2. So we are scrambling to raise the 50% and the additional one million.
Why are we helping the owner? Because of the Exodus: 22:22-24
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