Saturday, June 13, 2009
Promac settlement of 2 million...
Bob and I have been waiting for days to talk to the trustees office about our concerns of settling for such a small portion of the debt with promac.
Today, Bob and I finally had the chance to conference with them.
They made a strong argument for settling.
The facts as presented to us were these:
They hired a forensic accountant to go over the promac books (promac was very cooperative).
It seems Agape was the only company "funding" promac loans to vendors.
We were in fact the "promac bank".
Promac took our 5 mil and gave it out as loans to 65 or so vendors (pizza places, etc).
5 of those vendors went belly up. The others are making payments as promised.
If the trustee forced his hand and decided he wanted more than the 2 million, they would have to close up shop and the company would be worth 1.7 mil before liquidation. After liquidating we'd walk away with 1.4 million or so.
So, the trustee decided to allow them to settle at 2 million instead.
I cant say that I completely understand the mechanics behind this strategy, but that is what they told us.
Should we file an objection?
I dont know at this point. But please, please, PLEASE !!! Dont follow me on this one. I'm telling you... I'm not sure!
Every one of you has the right to file an objection if you feel its appropriate. There will be no repercussions.
No one will fault you. You have to follow your heart.
the trustee said they would broadcast a clear explanation of the strategy by outlining the steps they took in making the decision in the next few days for us (all) to review.
I'm going to see what they post and decide at that time how I feel about filing an objection.
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