Fast cash loan new jersey

Malden Mills wants loan - fast; Speedy lender charges higher interest

Bankrupt Malden Mills Industries Inc. has turned to an unconventional real estate lender in New Jersey known for bailing out Penthouse magazine publisher Bob Guccione, among others in need of quick cash.

Malden said in court papers filed late Monday that it's considering Kennedy Funding Inc., of Hackensack, N.J., as a potential lender.

A Malden spokesman said Kennedy is one of several potential lenders that could provide some of the $92 million that Aaron Feuerstein, Malden's chief executive, would need to buy back control of the company under a proposed deal with creditors.

The fleece maker asked a bankruptcy judge to approve a $20,000 payment to Kennedy as a due diligence fee, refundable if a loan agreement doesn't result. Jeff Wolfer, Kennedy's president, said those payments are normally sought once interest in a loan has been expressed in written form.

About 90 percent of loans made by the private lender use a borrower's real estate assets as collateral, Wolfer said. Kennedy claims to specialize in fast-turnaround lending situations where "speed is critical," including loans for commercial property, land deals, bankruptcies and foreclosures.

It lends up to 70 percent of the value of an asset, Wolfer said.

Kennedy's loans carry higher interest rates than bank loans. A Kennedy executive once described them as "nobody else will fund us, please help" loans.

Kennedy has made loans secured by cruise ships, insurance guarantees and collections of fine art and Ferraris.

In 2001, Kennedy Funding made an $18 million loan commitment to Senior Tour Players Inc., of Brookline, to help it buy golf courses.

In 1997, Kennedy Funding lent $14.5 million to Guccione, which was secured by his homes, property in Atlantic City and artwork. Guccione was later forced to sell off property after defaulting, and lost his Upper East Side New York townhouse to foreclosure.

A pending deal with Malden's secured lenders and creditors would bring the company out of bankruptcy but leave control in the hands of creditors. Feuerstein would have an option to buy out the creditors, and has been trying to raise money to do that.

"We believe we have the majority of funding in place to exercise that option," said David Costello, a Malden Mills spokesman.

He said Malden's business is improving, and it's called back workers on seasonal layoffs and has added manufacturing staff.