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).
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