Danville’s Harlow Fastech Defers $ 630,000 Loan Repayment to Tobacco Commission | Local News
Harlow Fastech was due to make his first payment to repay the loan on February 1, 2022, but under a forbearance agreement approved by the RIFA board on Monday, that first payment must not be made until February 1. 2024.
The agreement is between Danville, Pittsylvania County, Harlow Fastech and the Virginia Tobacco Commission.
RIFA board member Bob Warren, who chairs the Pittsylvania County Oversight Board, voted against the deal because he does not want to extend accountability to the county government and its citizens.
“I think any company that enters into an agreement with RIFA, and therefore Pittsylvania County and the City of Danville, should honor these agreements, just as RIFA will follow its termination of the agreement,” Warren said in a prepared statement. “I don’t agree with giving the company two more years without reducing the county’s financial exposure.
According to the resolution, forbearance would reduce the value of RIFA’s collateral securing the performance of the business under the loan.
“The warranty is specialized equipment with a limited resale market,” says the resolution.
Its depreciation would be around $ 250,000, depending on the resolution.
“It makes no sense to renegotiate an agreement that was already in place when this change does not include additional protection for the citizens of Pittsylvania County, as the equipment will depreciate over the course of two years,” said Warren.