What is the name of your state (only U.S. law)? Pennsylvania
My equipment business was sold a year ago. As part of the closing requirement the new owners were expected to assume the floor plan financing plan from GE, as there was $250K in equipment on the floor. This was stated in the letter of intent, the signed contract and the bank's documentation. At the day of closing we still did not have written assurance from GE that we were all set, only verbal assurances from the buyer that he had been approved. Ten minutes before the closing my broker and the bank got in contact with GE who told them that the buyer was approved. GE faxed a letter to the bank stating the buyer was approved with "conditions" for the full amount. The closing went ahead. Checks were dispersed. The next business day a "floor checker" from GE came by for an audit. He called his office who told him the new buyer was in fact not approved until he paid $50k cash collateral to the secure the floor plan (which he didn't have). This was totally unexpected as I did not have that requirement when I started out in the beginning or at the time of sale. It had never been mentioned before. I should also add that two months prior closing when GE found out I had agreed to sell the business they shut me down from further ordering as I was now in " adverse conditions". This meant I also could not get paid for thousands of $ in warranty work I had completed, get parts for my customers or order new equipment.
That said, the buyer defaulted on everything including keeping my receivables, defaulting on the 10% note and forcing me into foreclosure. I had to evict him also. GE erroneously assumed that the cash on hand the buyer claimed on his financial statement was free which it was not as he used it for the down payment. The bank did not investigate what "with conditions" meant. The broker's contract stated his commission was "earned" once we had the closing. Neither side was represented by a lawyer. Are there any remedies?
My equipment business was sold a year ago. As part of the closing requirement the new owners were expected to assume the floor plan financing plan from GE, as there was $250K in equipment on the floor. This was stated in the letter of intent, the signed contract and the bank's documentation. At the day of closing we still did not have written assurance from GE that we were all set, only verbal assurances from the buyer that he had been approved. Ten minutes before the closing my broker and the bank got in contact with GE who told them that the buyer was approved. GE faxed a letter to the bank stating the buyer was approved with "conditions" for the full amount. The closing went ahead. Checks were dispersed. The next business day a "floor checker" from GE came by for an audit. He called his office who told him the new buyer was in fact not approved until he paid $50k cash collateral to the secure the floor plan (which he didn't have). This was totally unexpected as I did not have that requirement when I started out in the beginning or at the time of sale. It had never been mentioned before. I should also add that two months prior closing when GE found out I had agreed to sell the business they shut me down from further ordering as I was now in " adverse conditions". This meant I also could not get paid for thousands of $ in warranty work I had completed, get parts for my customers or order new equipment.
That said, the buyer defaulted on everything including keeping my receivables, defaulting on the 10% note and forcing me into foreclosure. I had to evict him also. GE erroneously assumed that the cash on hand the buyer claimed on his financial statement was free which it was not as he used it for the down payment. The bank did not investigate what "with conditions" meant. The broker's contract stated his commission was "earned" once we had the closing. Neither side was represented by a lawyer. Are there any remedies?