Ouch… nothing like misstating a dollar value to be so wildly optimistic :rolleyes:
This is exceedingly common in business.
The open ended secured loan is used all the time.
Businesses love it because it’s guaranteed capital that you can pay down and draw on with no final term date and since it’s secured, you don’t have to show sufficient profit to pay back the whole thing, just the interest, so it’s easier to secure capital. Payment terms are all over the place sounds like this had interest and then lump sum capital payments.
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We have a couple loans like this in our real estate business, and we aren’t exactly big potatoes. We make one mortgage payment a year which allows us a lot more cash flow liquidity.
It may be common in business but it would take more than two hands for me to count the number of farms, trainers, feed stores, etc. I know who’ve been left with six figure unpaid bills when some racehorse owner suddenly said, “Oops, I’m out of money.”
It’s one thing for a bank to take the risk. But I still maintain (as I said in my post) that it’s a dumb way for “little guys” to do business.
Is this pretty much the end of Zayat’s racing stable? Can they force him to sell all his horses to pay the debts?
I think every trainer, including myself has let a bill slide and slide until it got so large the owner couldn’t pay. It’s easy to do because as horsemen, we aren’t going to not take care of a horse in our barn just because we haven’t gotten paid but also we believe in our ability to win “next time” and get made whole again. It happens. That said, Zayat is a serial non payer who needs to lose his license forever imo.
They can force him to sell the horses he used as collateral for his (unpaid overdue) loans. But he probably has plenty of others.
Is it just me, or was the Paulick Report article hinting that the appraisals were somehow not “above board” ?
This is pretty intriguing. Rodriguez, who was indicted with Jason Servis, etc., has an Agister’s Lien on three of Zayat’s horses. He wants to sell them for the bill that is owed him- just north of 50K. The bank is, of course, saying no way…what a HUGE mess all of this is! https://www.bloodhorse.com/horse-racing/articles/242567/navarro-rodriguez-seek-payments-from-zayat-stables
You betcha! :winkgrin:
Unless I missed something, Rudy Rodriguez has not been indicted for any reason. It was Jorge Navarro who was indicted at the same time as Jason Servis.
I don’t see that either. Zayat just owes him 400K.
The article itself is an exhausting read.
I screwed up! Wrong name! Sorry, Rudy, wherever you are…I should have listed Navarro.
Rudy’s issues started last year. They said after this article that something had been worked out, and the sale was cancelled. So much for working out a deal. https://www.paulickreport.com/news/t…-unpaid-bills/
Three words: Off. Shore. Accounts.
This is not Zayat’s first trip around this circus show. And he’s played it so well like a violin; he knows if they come knocking what he will have to be prepared to hand over. Everything else, I am sure, was kept extremely tidy and well-hidden far away from the grasps of any person, business or institution that may come looking. Hopefully this time around the JC actually inflicts some punishment on him in some form.
The JC does not inflict punishment. It is a registry, not a governing body.
It was inevitable;https://www.bloodhorse.com/horse-racing/articles/243343/ahmed-zayat-files-for-chapter-7-bankruptcy-protection
More argument https://www.bloodhorse.com/horse-racing/articles/243733/zayat-creditors-want-court-receiver-replaced
The Court says that the Receiver stays!!
