Investor Alert: Thompson National Properties Facing Bankruptcy; How it Impacts Investors

In an effort to avoid the possibility of Chapter 11 bankruptcy, real estate investor Tony Thompson is soliciting investors through his real estate management company Thompson National Properties to swap out failed high-yield-notes once sold by TNP in exchange for stock in the venture.

In July 2014, Thompson National Properties (TNP) initially pitched the offer to investors in an effort to restructure the $50 million in debt it currently holds as a result of five failed TNP-backed note programs sold between 2008 and 2012 by independent broker dealers.  

Though some investors have agreed to the deal, there are considerable risks for remaining investors facing the decision to swap or not.  TNP has stated that it is unable to remain in business under its current debt load, and it is clear that the company is at significant risk of Chapter 11 bankruptcy.  The executives at TNP claim that by swapping now-failed notes for stock, investors will have a chance of getting their money back.  They fail to acknowledge, however, what rights investors give up by agreeing to the deal.  In such a debt-equity swap, investors sign away their right to sue Tony Thompson, TNP, and others involved to pursue recovering losses.  In recent weeks it has also become clear that TNP may still end up in bankruptcy despite investor efforts, in which case equity owners (those that had converted their debt to stock) would receive less priority to make a recovery than would debt owners (those who had not accepted the swap).  What is not widely known is that investors may have other avenues for recovering their losses, with which our firm can help.

The failed note programs in part responsible for TNP’s current situation are also the focus of ongoing disciplinary actions by FINRA.  Both Thompson and his now closed broker-dealer TNP Securities Inc. are named in FINRA’s complaint, with a focus on the following notes programs: TNP 12% Notes Program, LLC (12% Notes LLC); TNP 2008 Participating Notes Program, LLC (PNotes LLC); and TNP Profit Participation Program, LLC (PPP Notes, LLC).  FINRA alleges that Thompson defrauded investors who purchased the high-yield promissory notes, of which $50 million were sold between 2008 and 2012, all sponsored by TNP.  Other note programs from the same period are also now defunct, including TNP Strategic Retail Trust and TNP 6700 Santa Monica Boulevard (also known as “TNP Kodak”).  

With potential Chapter 11 bankruptcy looming and FINRA’s own investigation ongoing, now is an excellent time to seek a free, confidential case evaluation if you ever purchased notes sponsored by TNP.  The window of time in which a complaint is able to be pursued is limited, and with the special considerations of TNP’s current debt restructuring efforts, it is incredibly important to act fast to make sure you have the best chance of making a recovery.  Contact us now if you believe you ever purchased any TNP-sponsored notes.  Our years of experience serving investors in need allows us to offer excellent representation to TNP investors across the nation.  Contact us now.

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