Gambling CEO Rolls Dice on Letter to B of A
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UPDATED: Jan 3, 2013
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Galaxy Gaming, one of the world’s largest manufacturers of casino table games, has undertaken a very unique method of getting their business loan lender’s attention: calling them out.
Robert Saucier, CEO of Galaxy Gaming, has written and posted an open letter on his company’s website to Bank of America’s CEO, Brian Moynihan.
“We took this step because what Bank of America is doing through its lawsuits against our company is truly unfortunate, a rash and reckless decision that won’t do anything to resolve our differences and let both sides get back to growing their business,” said Saucier in the open letter.
According to Saucier, Galaxy Gaming purchased a company that had borrowed a business loan from B of A in 2007. Saucier’s company agreed to pay off the business loan but never agreed to assume it. The collateral for the commercial loan was a building, which lost a large amount of its value during the real estate collapse. Prior to the real estate collapse, the collateral building had an appraised value of $2.2-$2.4 million. Saucier said that valuation fell during the real estate collapse to a recent appraisal amount of $800,000.
Hoping to minimize any losses after seeing this new valuation, B of A called in the business loan, demanding to be repaid in full despite the company having made all payments on time to date. Galaxy Gaming refused to meet B of A’s request.
Subsequently, Galaxy Gaming was sued by Bank of America.
“Menacing lawsuits can only contribute to suppressing potential growth, destroying good jobs and stifling the entrepreneurial spirit that B of A is supposed to support. Litigation—whether against us or against B of A—should always be a last resort and never a first option,” Saucier said in his letter.
The open letter continues to explain that Galaxy Gaming is a 15-year former client of Bank of America. Saucier argues that Bank of America has $42 billion in assets set aside strictly for litigation purposes.
“The loan was for $1.1 to $1.2 million,” Saucier told loans.org.
He explained in our interview that Galaxy Gaming is being sued for fraudulent conveyance. However, the company is countersuing and seeking damages from the lender.
Despite his ongoing legal battle with a financial behemoth, Saucier remains realistic in his expectations.
“I can certainly understand why Mr. Moynihan might not be able to give me a call, but Bank of America is not too big that they couldn’t at least ask somebody to at least respond to this,” he told loans.org.