[[NYCORP:2565908v17:4535B:10/21/09--09:45 a]] Class 8: Royal Palm Developments The real estate market is not holding up. Prices have declined noticeably during the course of the drawn-out acquisition agreement negotiations and the real estate inventory on the market is growing steadily. With their equity nest eggs shrinking and access to “easy money” home equity loans drying up, Frank is also worried people will start spending less at bars. It recently came to Frank’s attention that LBO’s banks, who are still negotiating their commitment papers with LBO, may be getting “cold feet” out of concern for the collateral value, among other things. Fortunately for him, Frank’s lawyers suggested that he pay attention to the conditions in LBO’s financing commitment letters. It turns out that those papers would have let the banks walk away for a laundry list of reasons. And Bud Bootstrap didn’t seem to be fighting his banks very hard to have those conditions removed…. The parties are all now generally interested in wrapping up the indemnity negotiations
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