BKCAP, LLC v. CAPTEC Franchise Trust 2000-1, No. 11-2928 (7th Cir. 2012)
Annotate this CaseQuality owns dozens of restaurants in several states. To refinance its debt, Quality created subsidiaries (plaintiffs-borrowers) and made a deal with Captec Financial and GE Capital for 34 separate loans totaling $49 million, with each loan secured by a restaurant. The parties disagree about the prepayment requirements for 12 of those loans. The borrowers prepaid according to their own interpretation of the prepayment provision and the lender rejected the effort. The district court granted the lender summary judgment. The Seventh Circuit remanded for the district court to consider extrinsic evidence. The court concluded that extrinsic evidence supported the borrowers’ interpretation and awarded prejudgment interest. The Seventh Circuit affirmed.
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