A few years ago Marbury guaranteed a $16 million loan to Starbury, his namesake company that sells shoes and other apparel. The problem is, the company never paid off the loan, and now Wachovia-turned-Wells Fargo wants its 16 mill back and is pressuring Marbury to pay up. Apparently the collateral he put up for the loan was foreclosed property.
17. Borrower has defaulted on its obligations under the Note and Mortgage by, among other things, failing to make payments when and as due, and failing to apply the rents, issues, profits, and revenues received for the Property after the occurrence of an Event of Default for the ordinary and necessary expenses of owning and operating the Property or remitting the rents, issues, profits, and revenues received for the Property after the occurrence of an Event of Default to the Lender.
18. The balance due and owing on the Note, as of September 11, 2010, is the principal balance of $16,063,179.49, together with default interest, late charges, sums advanced for the protection of the Property, attorney's fees, and all other sums due under the Note, the Mortgage, and other applicable loan documents.
19. On or about November 8, 2010, Plaintiff commenced litigation in this Court captioned as WBCMT-2007-C31 Kingsridge Drive, LLC v. Starbury GSA IV, LLC, et al., Case Number 2010 CV 08836 against Borrower and other defendants to foreclose the Property serving as security for the obligation ("Foreclosure Action"), and judgment of foreclosure in rem was rendered against Borrower on May 19, 2011 in the total amount of $21,742,461.12, plus interest, late feees, attorney's fees, costs, and amounts which Plaintiff may advance for the preservation of the Property.