13 Mar SilverDeer Followup in Triangle Business Journal
Friday, March 12, 2010
SilverDeer informs investors of its Waterloo
Triangle Business Journal – by Chris Baysden
RALEIGH – A company affiliated with troubled Raleigh real estate investment firm SilverDeer LLC has called it quits, according to a March 4 letter sent to investors.
“At the end of 2009, the Company’s Manager determined that the Company has no reasonable prospect of recouping a material amount, if any, of its capital,” reads the letter from SilverDeer Management LLC to members of SilverDeer Carolinas Caribbean LLC. “Because the Company was unable to obtain sufficient additional capital from members or otherwise to support its business and investments, the Manager does not anticipate any material future business or return of its investments.”
The letter, which adds that the firm won’t prepare a tax return, comes on the heels of more recent bad news for SilverDeer Carolinas Caribbean. The firm defaulted on a $10 million line of credit, plaintiffs in a lawsuit against SilverDeer and related companies claim in a motion filed in the North Carolina Business Court on Feb. 2.
The past year has been a tough one for SilverDeer, which was founded by Howard Jacobson and Richard Deckelbaum in 2003. A related firm, SilverDeer Olde Liberty, was an investor in the Olde Liberty Club residential development and golf course in Franklin County. A large chunk of that development was foreclosed on last year.
In the Feb. 2 filing, the plaintiffs allege that SilverDeer Carolinas Caribbean I LLC’s default on the $10 million credit line with Wachovia Bank caused the bank to make a call on more than $2 million in collateral pledged by the plaintiffs.
“This is precisely what the Plaintiffs argued would happen – that the SilverDeer Enterprise is rapidly falling apart and that assets are being wasted,” plaintiffs attorney Jim White wrote in the Feb. 2 filing.
White, in a phone interview, says of his clients, “This has cost them a lot. They’re losing assets they never thought they would lose.”