Dilution & Removing a Personal Guarantee

[Sean H.]

I am currently a 33% owner in a S-Corp that has loans on several properties. My partners and I have agreed to a stock issuance to allow an additional partner to join the company that will dilute me personally to about 17-18%.

The banks loan covenants state that any person with a greater than 20% ownership interest in the company will have to sign a personal guarantee, which as a 33% owner, I did. Now, being diluted down, how difficult will it be to have that personal guarantee removed? Has anyone gone through a similar situation?