SCA Promotions Says $14M Investment Isn't A Loan

Law360, Dallas (July 31, 2013, 8:09 PM EDT) -- SCA Promotions Inc. on Tuesday launched a suit in Texas state court against one of its investors, seeking a finding that a deal to provide a $14 million equity boost to the company was only nominally structured as a loan and can’t be the subject of a valid demand for repayment.

SCA, which provides financial backing and risk coverage for promotional contests, alleges Cardinal Court Investors LLC structured a series of what were intended to be investments in the company as loans, which were eventually reduced...
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