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What would you do? please read thoroughly...?
I work for an small firm. My boss is the principal, I am a senior employee though not a partner. I have worked here 10 years. We have a good relationship that I'd like to continue, but I not interested in getting hurt either.
A few years ago we built a new office facility for ourselves incorporated as a seperate business entity. I have a 20% stake in this corporation. My boss has 60% and another senior staffer the other %20. This building was built primarily with borrowed monies, either from the bank or from the business.
We are 3 years into our mortgage. Couple that with the drop in real estate value, we probably have little equity. Although, I'm sure the building would break even if we had too sell, even now.
The business is pursuing a line of credit. I have been informed that I will need to sign some paperwork regarding this line of credit.
To me this seems strange. Why is the bank liening on the real estate company when the business needs the line of credit.
Should I go along? I could reason that without the business I lose my stake in the real estate anyway. Should I hold my ground and try and keep them seperate? Should I negotiate some gain for putting my shares in the real estate company at risk, mortgaging them to the business?
Anything I'm not thinking of...
David B - Its two seperate entities... One that i have an ownership interest one I do not.
1 Answer
- David BLv 61 decade agoFavorite Answer
If you are a part owner then why wouldnt you want to sign and help the company.