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$132,390.10 for two Rockwood coaches floorplanned by Chrysler
First. These coaches were then transferred to Fishfader in
exchange for the note given to him by Northwest. Moore, acting
as president of Northwest, delivered to petitioner a 1-year,
interest-bearing promissory note dated May 24, 1989, in the
amount of $132,390.10.
About this same time, late May 1989, Ratliff produced
another note signed by Nicholson, as president of Northwest, in
the amount of $225,000. Petitioner sent a representative to
Coeur d'Alene, who met with Nicholson and asked him to resign and
not return in any capacity. Petitioner immediately consulted its
lawyer about what options were available regarding Northwest and
Nicholson. Petitioner's officers still felt that Northwest was
in a marketable area and had potential for success, despite its
poor financial condition.
In June 1989, Golden and Weaver made a surprise visit to
Northwest. They found the parts inventory and parts room in
disarray, and some used coaches were missing while others were in
disrepair. They also went to Northwest's accountant's office to
inquire about some of the information on Northwest's financial
statements. The accountant stated that he compiled the financial
statements from the numbers he received from Nicholson and,
previously, Fishfader. The accountant never inspected bank
statements, check registers, or receipts.
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