It is unlikely that JP Morgan will extend or renew the loan, according to the filing - making a potential bankruptcy for the company more likely if JER is not able to repay the loan and if proceeds from the liquidation of the debt's collateral are not enough to cover the loan amount.
2009 has not been a good year for JER, in no small part due to the founding partner's health problems. As with many other real estate firms the credit crisis and recession have taken a toll on its operations.
Early in the year it was delisted by the New York StockExchange because its stock has been trading below $1 per share for more than 30 days. It was forced to withdraw a proposed public offering of Class A common stock and discontinue its regular quarterly dividend, replacing it with an annual dividend.
This summer Barden Gale was appointed CEO. In an interview with GlobeSt.com at the time, he was hopeful about the company's long term prospects - after, that is, a stretch of additional pain for both the company and the industry.
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