After learning what everybody on this site was reading I suddenly felt intellectually inadequate to participate in the discussion group. Thanks to this thread, many otherwise bright people have suddenly come back to the pack. Proving once again that Dad was right - we're all ignorant, just about different things.
Knowing nothing about Ballyneal, I realize that sometimes not everybody involved gets the deal they bargained for, regardless of whether their capital contribution is cloaked as equity or debt and that as a result they can ultimately be surprised by where they fell in the pecking order, or as the financial cognoscenti like to call it, the capital stack. Perhaps capital is raised on a piece-meal basis and side deals are cut without the consent or knowledge of previous capital providers (be they members, lenders or investors). Folks get screwed. Again, I know nothing about Ballyneal - I'm just saying it happens.
Bottom line, debt is an unforgiving and inflexible master and absent the stay of bankrupty foreclosure wipes everybody else out. Think of it this way, when the food is limited, some folks are going to have to be excused from the table and the lender had the only reservation. In such instances, everybody loses something. Being turned away is even more frustrating if the would-be-diners had been told that the establishment doesn't take reservations. In my work-out experience as a banker, we've never broken even on a foreclosure - not even close. As a result, I'm hardly inclined to give those wiped out a piece of the action going forward. Besides, the issue is moot as there isn't any equity to share.
Bogey