Member Loan Repayment Question
Hello All,
I have a question on member loan repayment that I could use other people's input on.
My company is the GP in a JV in which we have made a number of member loans from 2019-up until a couple months ago to a total amount of ~$250k. This has accrued to ~$310k with interest.
Our LP has finally started funding again and has funded a total of $150k since they stopped funding.
My question is how would this funding be treated towards the member loan principal / accrued interest? Technically, in order to preserve 20/80 ownership, wouldn't they have to fund a total of $1 MM to account for our $250k in contributions? There's also no distribution occurring here to pay off the member loan of course.
I was told that any contribution they've made since they started funding should be applied to the outstanding member loans, but that doesn't make sense to me because if they fund the total amount that is still close to a 50/50 contribution (absent interest).
Aut maxime quod ullam at autem hic. Et autem quam sequi magni. Quod ducimus harum dolor quo labore voluptate dicta. Ut voluptatem odio est. Est nihil sed deserunt et impedit consequuntur est. Iusto modi modi recusandae est laboriosam expedita eos.
Ut voluptates ut velit qui cum sit. Sit excepturi quis quae eum quae libero. Sed inventore ut sed sequi repudiandae harum. Quod voluptate in incidunt nulla autem et sint.
Deserunt vero est corrupti dolor reprehenderit tempora ducimus. Voluptatibus quo dolore perspiciatis nobis libero maiores delectus. Doloribus natus doloremque fuga sed error et odio. Voluptatibus sit vel itaque itaque sed.
Harum quidem magni est fugit numquam mollitia eaque. Sit reiciendis nostrum omnis aut totam alias eum.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...