Investment News has a story about Thompson National Properties (TNP) suspending payment of interest on a program that raised capital in 2008 and 2009, just as TNP was getting started. The program, TNP 12 Percent Notes Program LLC, was intended to provide working capital for TNP. The only assets of the program were loans to TNP and affiliates. TNP provided no credit enhancements or guarantees. If I remember correctly, investors are members of the LLC, and the LLC made the loans. Of course, an affiliate of TNP is the Managing Member of the LLC.
I don;t believe that investors have any immediate recourse, other than to remove the Managing Member, and install one that will act in their interests. That would take a lot of time and money, and if TNP's forecasts are accurate, interest payments would be flowing again.
On the other hand, Tony Thompson has faced a lot of adverse conditions, has worked hard to resolve them for the benefit of investors, and has made a lot of money for investors and himself along the way.
The comments on the article are very interesting. They reflect just how polarizing an figure Tony Thompson is. Tony has just as many fans as he does detractors.
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