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Thus, the third party generally would enjoy priority over NITCO
with respect to having the third party's $2.8 million loan repaid
by BMCT.
Kyle ceased being an employee of NITCO around the middle of
1990. He then moved to the Pacific Northwest and resided there
in 1991 and 1992 in order to conduct BMCT's and FiberComm's
respective operations. In 1991 and 1992, NITCO paid Kyle an
annual "salary" of $73,292 and $77,283, respectively.
Additionally, from the middle of 1990 through February 1993, Kyle
continued to be covered under NITCO's retirement plan and
continued to receive coverage under NITCO's dental and health
insurance plans.
During 1991 and 1992, BMCT made no interest and principal
payments on the loans it received from NITCO.
During the latter part of 1991, Mr. Mussman proposed to Kyle
that BMCT, FiberComm, and NITCO form a limited partnership that
would undertake to build and operate the Oregon rural statistical
area number three and Washington rural statistical area number
eight cellular telephone systems. Mr. Mussman told Kyle that he
just wanted NITCO to have a short-term investment that paid a
guaranteed annual return.
In late 1991, Kyle sold to Rhys: (1) A 46-percent stock
interest in BMCT for $61,000, and (2) a 46-percent stock interest
in FiberComm for $61,000. By the end of 1991, BMCT owed a total
of approximately $3.8 million in principal and interest on the
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