Tim Fletcher, president of Precision Printing, has 15 days to refinance his company’s outstanding loans of approximately $2.8 million. Its current lender, National Bank, received Precision’s loan and wanted to renegotiate the terms. In effect, the bank demanded that Precision’s owners make an equity infusion of $1 million and sign personal guarantees for an additional $2 million. Fletcher has few options. He needs to present the bank with a reasonably attractive proposal, or risk failing to consummate any deal.
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