A recent court case in Texas involves a complaint filed by Redstone Funding LLC on Feb. 3 against Shujat Holding Company and various loan guarantors. The suit refers to a commercial real estate lien note dated July 2, 2007. On that date, the amount of $1,420,000 was borrowed from Texas State Bank by Shujat Holding Company. At the time, Shujat Ali Swati, Mohammad A. Swati, Pak-Petro Inc. and Swati Enterprises Inc. all signed as loan guarantors.
The complaint asserts that Redstone Funding LLC is the current holder of the note. The plaintiff asserts in the suit that the defendant did not make required payments beginning on Dec. 2, 2013. Furthermore, the terms of the note suggests that the balance was accelerated as of Jan. 30. In the lawsuit, Redstone Funding LLC seeks all unpaid principal and interest amounts now due, along with all pre-judgment and post-judgment interest, costs, and fees. The court is being tried in the 136th District Court.
When a business loan is not repaid according to the terms set forth in the loan agreement, the lender can assert breach of contract in a civil lawsuit. In this case, non-payment by Shujat Holding leaves the plaintiff with the option of also seeking principal and interest owed from the various entities that originally guaranteed the repayment of the note.
A lawyer with experience handling business litigation cases may be able to help individuals involved in similar civil cases pursue payment. That lawyer may be able to gather evidence that supports the plaintiff's claim to funds and demonstrates the defendant's liability for payment.
Source: The Southeast Texas Record, "Redstone Funding sues seeking payment due under terms of note", Whitney Brakken, February 11, 2014