Business Protection and Risk Reduction

Daniel Scott Wright

Case Conclusion Date:March 10, 2009

Practice Area:Business

Outcome:Successful Protection of Client's Investment

Description:After loaning a substantial sum of money to his partner a client provided me with an opportunity to do some constructive creative thinking. This took the form of creating a joint venture vehicle (via an LLC) with governing agreements, including protective provisions to enable the conversion of my client's equity interest in the JV into “mezzanine” debt in the event of default. Eventually, his partner defaulted and declared bankruptcy. In this case my client was able to use those protective instruments to foreclose on the partner's wholly owned LLC and collect his debt.