Deal paves way for sale of National Golf. (Up Front).Golf course operator American Golf Corp. reached a restructuring agreement with its lenders, while the company's chairman, David Price There have been a number of people named David Price:
The agreements follow a separate restructuring of National Golf's debts on June 28. Together, they help pave PAVE Cardiology A clinical trial–Post AV Node Ablation Evaluation the way for the potential sale of both companies, which is being engineered by National Golf's interim chief executive, Charles "Skip" Paul. Several months ago, American Golf, National Golf and several of their affiliates agreed to merge and seek new equity investment, after a slowdown in the golf business placed financial pressures on both. However, the companies' interlocking interlocking /in·ter·lock·ing/ (-lok´ing) closely joined, as by hooks or dovetails; locking into one another. interlocking Obstetrics A rare complication of vaginal delivery of twins; the 1st interests and obligations complicated any transaction. Also, Price's financial entanglements with American Golf -- which he controls -- and conflicting interests in the two concerns made outside shareholders of National Golf nervous. American Golf has agreed to collateralize collateralize To pledge an asset as security for a loan. A loan to a broker is collateralized by pledging securities. its debts to National Golf Operating Partnership, Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. and certain American Golf noteholders with leasehold mortgages. In return, the creditors have waived existing defaults and most potential future defaults until the pending reorganization of the companies takes place, or March 31, 2003. American Golf agreed to make $24 million in payments to its creditors through March of 2003, while the creditors agreed to defer up to $24 million in rents. Price pledged 3.6 million National Golf common shares and NGOP partnership units to Bank of America and American Golf noteholders, and granted a second deed of trust A document that embodies the agreement between a lender and a borrower to transfer an interest in the borrower's land to a neutral third party, a trustee, to secure the payment of a debt by the borrower. on a property that the company didn't identify. |
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