-23-
Assets:
Cash $9,098,388
Investment in Landmark (3,967,304)
Investment in Gateway 2,660,677
Note receivable from THEI 2,619,833
Unamortized organization costs 39,388
Total assets $10,450,982
Liabilities:
Accounts payable (1,847)
Total liabilities (1,847)
Net proceeds 10,449,135
Respondent asserts that, at the end of the first year (1990),
all the liquidation proceeds would have gone to Dondi, which was
the only partner to have a positive capital account. Further,
respondent claims the amount available upon liquidation is
$5,960,002 less than the capital account balance of $14,879,392 for
Dondi. Respondent points out that, because there is no provision
in the IHCL Restated Agreement for a deficit makeup, THEI would not
have been required to make up the shortfall, although it had a
negative capital account totaling $5,920,614.
At the end of the second year (1991), the net book value of
IHCL's assets exceeded $10 million. Respondent contends that under
the IHCL Restated Agreement all of the increase in book value would
have been distributed to Mr. Manchester, as successor to Dondi's
interest in IHCL, because Mr. Manchester was the only partner with
a positive capital account at the end of 1991. Respondent points
out that the amount available for distribution is approximately $5
million less than the positive balance in Mr. Manchester's capital
Page: Previous 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 NextLast modified: May 25, 2011