Wells Fargo & Co (NYSE:WFC) has initiated legal proceedings against a number of firms under the Talisker corporate umbrella seeking to foreclose on $163.8 million worth of loans linked to properties like Tuhaye and Talisker Club. Enjoined in the case by Wells Fargo are 14 defendants.
The lawsuit filed on the 27th of February is the second of a kind involving Talisker corporate family aftera fierce tussle with former owners of Park City Mountain Resort that resulted in the sale of the resort. The case is based on loans issued in the fall of 2010 when Wells Fargo & Co (NYSE:WFC) and Bank of Scotland approved the same.
Midtown Acquisitions is enjoined in the case having acquired the Bank of Scotland’s interest in the loans. Fillings on the lawsuit indicate that the loan agreement was modified four terms until the summer of 2014 with Wells Fargo & Co (NYSE:WFC) serving as the administrative agent for both lenders.
Talisker is reported to have executed an updated promissory note that was a little less than $76.5 million when the loan was modified the second time. The same day Midtown Acquisition executed a promissory note believed to be worth $66.9 million. Since Talisker was required to repay the loan by April 2014 but failed, Wells Fargo alleges that was a default event.
An agreement was later reached between the involved parties that called for the lenders not to move against Talisker Finance, which was also required to meet performance requirements centered on sales of real estate that acted as collateral on the loans. The lenders have reportedly provided more than $7 million for the funding of Talisker Finance LLC operations since April 2014.
The amount of money that Wells Fargo & Co (NYSE:WFC) is seeking from the lawsuit is based on the principal of the promissory notes and interests calculated from different periods. The lawsuit seeks a judgment against Talisker Finance for any sum of money owed after sale and judgment of money that lenders are entitled to.