• 03
  • November
    2011

The economic downturn has made it increasingly difficult for lenders recover payments on loans. There are of course those situations in which the debtor has sustained serious losses and the amount that can potentially be recovered is limited. But in many situations the debtor has sufficient assets to cover the outstanding loan amount.

There is speculation that an upcoming auction by Julius "Dr. J" Erving, is an attempt to raise the funds necessary repay an outstanding bank loan and end a related lawsuit. The auction will sell various NBA championship rings and trophies that Erving earned during his career. The Georgia Primary Bank filed a lawsuit saying that Erving and his corporation, The Erving Group Inc. owes more than $200,000 on the loan.

Julius Erving purchased the Heritage Golf Club around 2006 and moved to the Atlanta area about two years later. In 2009 his company obtained a $1million line of credit from the bank, using his Gwinnet County home as collateral. By 2010 it was reported that the golf club was in foreclosure. The maturity date for the loan passed last year, and in September of this year the sent a demand letter for payment of the outstanding $200,000.

Erving has said that the planned auction is not for the purpose of paying off debt or otherwise connected to the law lawsuit, despite the fact that the auction and the lawsuit were announced just hours apart. The items to be auction include his 1983 NBA Championship ring, two ABA Championship Rings and MVP trophies that he was awarded in each league. He noted that a portion of the proceeds will be donated to the Salvation Army.

Source: Atlanta Journal Constitution, "Dr. J says memorabilia auction not connected to lawsuit" Alexis Stevens, Oct. 27, 2011