In a letter to its investors dated February 14, 2014, Thompson National Properties (TNP) stated that it “cannot support its current debt load” and that its “current cash flows cannot service the debt” it currently has.
In the letter, TNP proposed to adjust the interest payable to investors to what it calls “realistic interest rates,” without specifying what those rates may be. TNP also proposed that, rather than paying the initially-promised returns to investors, it pay what it calls a “fair return,” without offering any numbers.
TNP proposed to convert the notes held by investors in TNP 2008 Participating Notes, TNP 12% Notes, TNP PPP notes, and other notes into equity in TNP.
The letter also assured investors that “TNP has the skills, experience, team and motivation to grow TNP again and regain its reputation as one of the leading real estate investors and service providers in the U.S.” and mentioned “TNP‘s senior management team[‘s] … decades-long investment track record of providing investor satisfaction.”
Last year, Tony Thompson and other TNP officers have been charged with fraud by the Financial Industry Regulatory Authority in a regulatory (civil) complaint, in connection with TNP, TNP 2008 Participating Notes, TNP 12% Notes, and TNP PPP. They dispute the allegations, according to media reports. There has been no resolution in that case as of now.
The entire letter is available here: TNP letter to investors.
The Peiffer Wolf Carr & Kane securities lawyers represent numerous investors in TNP programs such as TNP 2008 Participating Notes, TNP Strategic Retail Trust, TNP 6700 Santa Monica Boulevard (“TNP Kodak”), Bruin Fund, and TNP 12% Notes. They have filed cases against some of the securities broker-dealer firms that sold the TNP programs to their customers, as well as against some other individuals and organizations.
They were the first law firm to file a class action on behalf of TNP investors, according to media reports. Currently they have filed three class actions on behalf of investors in three TNP programs: TNP 2008 Participating Notes, TNP Strategic Retail Trust, and TNP Kodak.
In their cases against those financial service organizations and advisors who offered and/or sold those TNP programs to investors, the Peiffer Wolf Carr & Kane attorneys have alleged that those financial professionals have failed in their duties to adequately investigate the TNP investments and ensure that they were suitable and/or appropriate for their customers, before recommending such investments.
Investors who believe they lost money invested in TNP programs such as TNP 2008 Participating Notes, TNP 12% Notes, TNP Strategic Retail Trust, TNP 6700 Santa Monica Boulevard (“TNP Kodak”) or other TNP programs, as a result of inappropriate investment recommendations, may contact attorneys Jason Kane or Joe Peiffer for a free, no-obligation evaluation of their recovery options, toll free at (216) 589-9280, or by filling out the contact form on this website.