L&C Springs Associates, Solomon A. Weisgal Investment Associates, Tax Matters Partner, et al. - Page 13

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            the L&C Properties.  All rental income from the L&C Properties                            
            was ordered to be turned over directly to Cal Fed and court-                              
            ordered sales of the L&C Properties were scheduled for May 24 and                         
            May 29, 1990.                                                                             
                  On May 16, 1990, pursuant to decisions made by Boggio,                              
            Kanter, and Weisgal, Tanglewood filed a Chapter 11 bankruptcy                             
            petition in the U.S. Bankruptcy Court for the Southern District                           
            of Florida for the purpose of triggering an automatic stay of the                         
            scheduled foreclosure sales of the L&C Properties.  By filing for                         
            bankruptcy, the individuals controlling Tanglewood and L&C                                
            Springs hoped to delay for as long as possible the realization of                         
            ordinary income and capital gain by L&C Springs and its limited                           
            partners that would be triggered upon a foreclosure sale of the                           
            L&C Properties.                                                                           
                  In disclosure statements prepared by Boggio and provided by                         
            Tanglewood to the Bankruptcy Court in connection with                                     
            Tanglewood's bankruptcy proceedings, Tanglewood represented                               
            itself as the owner of the L&C Properties.                                                
                  In these bankruptcy proceedings, general reference was made                         
            to a Florida land trust, but in financial statements filed on                             
            behalf of Tanglewood, the $2,250,000 stated debt obligation of                            
            L&C Springs to Tanglewood with regard to the L&C Properties was                           
            not listed as an asset of Tanglewood, nor reflected in any other                          
            way.                                                                                      






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