When you consider the possibilities of any organization to conduct business, the first thing that they actually need is the capital and the cash to be able to do so. People need paid, whether in the form of salaries and insurance down to the suppliers and materials themselves. However, when you look into the recent questions surrounding a loan like the one on the Press of Altantic City, it starts to become very difficult to even conceive why a company would want to do business with an organization that falls multiple millions of dollars behind on a loan.
When you consider a company like DEVCO that is only trying to create a top of the line hotel and conference center, you also have to consider the events behind this situation. On the one hand it can be difficult to work with organizations that aren’t able to fulfill their promises and repay their debts. Then again, on the other hand how can you really assign blame to a company that may have been trying to create jobs and revitalize an area and just so happened to do so during one of the harshest economic times in recent history? The fact remains that Devco is a tremendous developer of properties and real estate investments. That being said, the current questions surrounding a loan of $20 million look to a major red flag for anyone who wants to do business with them.
It appears as though Devco is going to need to find out how to correct this current situation. As many people are trying to decide what this means for them, the fact of the matter remains that in this Devco deal and loan more than $1 million was just missed in a payment due, and more than $7 million is now in arrears on the loan that was originally $20 million.