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by Peoplefeeders in favor of Motsenbocker and Commerce Bank
relating thereto, and the debt obligations were secured by
personal guarantees of Partrick, by corporate guarantees of
Square Pan and the other subsidiaries, and by collateralization
of the operating assets of Square Pan and the other subsidiaries.
As of early fall of 1987, Square Pan and the other
subsidiaries owned and operated 25 restaurants and other
businesses (namely, a wholesale food supplier and a food
concession). At that time, Peoplefeeders did not separately own
or operate any restaurants, and Peoplefeeders had no source of
income from any business other than Square Pan.
In the fall of 1987, Peoplefeeders purchased and began
operating one Arby's restaurant. In 1988, Peoplefeeders opened a
pizza restaurant, but it was unsuccessful and closed within
a year. In 1990, Peoplefeeders opened another pizza restaurant,
but this restaurant also was unsuccessful and closed within
a year.
Intercompany Bank Account
Each of the restaurants owned and operated by Peoplefeeders,
by Square Pan, and by the other related subsidiaries maintained
separate bank accounts at different banks, and cash receipts from
operations of each restaurant were deposited daily into the
separate bank accounts maintained by each restaurant. Three
times a week, the total cash receipts from all of the restaurants
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Last modified: May 25, 2011