A Florida bank filed a lawsuit claiming a local theater company has failed to pay on two notes. The lawsuit is a foreclosure claim against the business. The lawsuit is the result of the theater company’s supposed failure to pay approximately $6 million dollars of debt owed to the Florida bank. The company has made comments regarding a potential Chapter 11 or Chapter 7 bankruptcy.
It has been reported that the Florida theater has been going through financial difficulties. Its leaders have reviewed the business’ financial status and are considering and hoping for a reorganization of its debt. The company has considered reorganization under Chapter 11 bankruptcy but says is not considering liquidation through Chapter 7 bankruptcy.
The lawsuit claims the company has defaulted on two notes. A bank note is a contract between parties to repay an amount of money within the specific dates stated in the contract. One of the notes was for $2.88 million dollars and the second note was approximately $3 million dollars. The bank is seeking repayment and it was reported that the bank has made arrangements to work with the company in the past. The bank claims it allowed the company to modify the loan for easier repayment.
The theater has been in business for 37 seasons and claims it is the longest-running theater in its area. The potential bankruptcy status of this artistic venue isn’t the first of its kind in Florida. Another theater, as we shared in a past bankruptcy post, closed last year after filing bankruptcy under Chapter 7.
Sadly, the arts, an escape from reality, are not immune from the stark reality of Florida’s economy.
Source
Sun Sentinel, “Legacy Bank files to foreclose on Caldwell Theater,” Alexandra Clough, Feb. 14, 2012