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ATLANTA-Locally based Novare Group Holdings LLC is in default on “a substantial amount” of its debt and is working with its lenders to restructure at least $100 million in loans for projects across the Southeast and Southwest. This comes as its auditors question the company’s “ability to continue as a going concern,” according to a report by the Atlanta Business Chronicle and other publications.

Novare faces $280 million in loan maturities this year and another $320 million in 2010. It has $713 million of debt outstanding and $81 million in debt through joint ventures, according to financial statements. The developer lost $47 million in the first quarter of this year and $61 million in 2008.

No properties have been foreclosed upon, Novare founder Jim Borders stated, “but there are near term and past due maturities that could result in that.” Novare is no longer making scheduled interest payments on loans secured by eight projects in Atlanta, Tampa, Houston and Charlotte.

Novare suspended the payments as lenders consider a request to restructure the loans. Combined, the loans come to almost $57 million. Click here to read more from the Atlanta Business Chronicle.

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