NEON clinics face possible foreclosure as lender loses patience

Yes, but: Its future is now in jeopardy.

Driving the news: In its Feb. 18 filing, lender All Pro Capital said attempts to stabilize NEON's finances through receivership were no longer effective and signaled its intentions to foreclose on the properties.

• The lender says NEON is "not even reasonably close" to repaying its debt and lacks the resources to remain financially viable.

The other side: NEON CEO Willie Austin has not responded to an Axios request for comment.

Catch up quick: All Pro sued NEON last year over default on an $11 million loan.

• The debt is secured by mortgages on five still-operating clinics, NEON's closed Hough and Miles Broadway sites, and its Payne Avenue headquarters.
• Nearly $9 million remains unpaid.

A federal judge appointed a receiver in November to take control of NEON. But the lender says this hasn't produced "meaningful progress toward repayment."

• "Over nearly one year of negotiations, NEON has never provided All Pro Capital with the necessary financial documentation," the Feb. 18 filing says.

Friction point: NEON's inability to make payroll this winter, and the abrupt termination of its attorney this month, raised enough red flags for All Pro to pursue its current course.

What's next: All Pro still must formally seek foreclosure in court. If it does, the properties could be sold to satisfy part of the debt.