May 06--Virginia Beach-based Waterside Capital Corp. said Monday that its board has reversed course for a second time and no longer plans to contest a U.S. Small Business Administration move to force the company into receivership. The SBA wants to recover millions of dollars lent to the company, which invested in small businesses.
The SBA in November filed a federal lawsuit claiming the company had defaulted on an $11.8 million loan. The agency wants Waterside's assets liquidated to pay off the debt.
On Dec. 3, Waterside said it wouldn't contest the receivership, but on Dec. 27 it announced that its board had decided to fight the SBA.
On Monday, Waterside said its board intends "to consent to the receivership process."
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