Legal Question in Business Law in Georgia

Non payment of Note

Two years ago the Board of Directors of a Company I co-founded decided to sell the ''A'' Company to another ''B'' company. The major asset of the ''A'' Company was domestic & international Patents. The Board of ''A'' made a deal where the purchasing ''B'' company would pay cash and stock for ''A'' company's assets. Promissary Notes were issued to Company ''A'' shareholders. Interest payments were due twice a year. Total sum due in 3 years. The ''B'' company who purchased ''A'' company has defaulted on the Notes, skipping some payments and making only partial payments. What can I do?


Asked on 5/28/01, 9:38 pm

1 Answer from Attorneys
Jeff Kent Kent & Merritt, P.A.

Re: Non payment of Note

Before being able to answer your question about what you can do, more information is needed. For instance, what is "B" Company's financial situation -- are they delinquent on other notes and bills as well, or are they just failing to pay these notes? Have there been any negotiations with the company to get this money paid? What are the terms of the note -- what are your remedies in the case of default? These and a number of other questions could be very important in what you should do. Some avenues open for you may include having an accounting of "B" Company's books (if you are a shareholder in "B" Company), litigation, seeking other creditors to put "B" Company into involuntary bankruptcy, and simple negotiation. Feel free to re-post your question with more information or contact me directly if you would like to discuss this situation further.

Read more
Answered on 6/26/01, 1:07 pm


Related Questions & Answers

More Business Law questions and answers in Georgia