Editor’s Note: An earlier version of this article contained an erroneous amount, and should have noted the loan balance was $2,768,000, and not $29,500,000. McKnight’s regrets the error.
A Cumming, GA, senior living community is being sued for allegedly failing to repay $2,768,000 million borrowed from Millenium Bank in Georgia.
According to court records, White Oaks at Lanier, now known as Country Gardens Lanier, secured a commercial loan from the bank in 2016 and it became due Sept. 30 “after multiple extensions and two forbearance agreements.” The initial maturity date for the loan was May 9, 2020, which was extended to Dec. 31, 2021, then to Jan. 26, 2022, then to June 30, 2022, and finally to Sept. 30, 2022. As of April 9, the unpaid principal balance of the loan was $2,767,642.18.
White Oaks at Lanier used the senior living community as collateral for loan on the condition that Millenium would take over the property if the defendant defaulted, according to the claim.
“Millennium has therefore filed its motion for appointment of receiver, a preliminary injunction and other relief necessary to empower the receiver to perform his duties,” according to the complaint.
Millennium Bank claims that unless a receiver is appointed, the bank will “suffer immediate and reparable injury, loss and damage.”
Judge Richard W. Story of the District Court for the Northern District of Georgia has given White Oaks and its co-defendants — Michigan-based owner Gryphon Senior Living Group and individuals Douglas Cameron and Adam Zussman — until April 21 to submit a written response to the complaint.
Attorneys representing plaintiffs and defendants in the case had not responded to requests for comment from the McKnight’s Business Daily by the production deadline.
