- 6 - owned the following four entities, each of which operated a theme park: Date or Year Subsidiary of Acquisition Percentage Ownership Ozarks Entertainment, Inc. 12/86 92.5 1987 7.5 Deer Forest, Inc. 1/87 100 The Nygem Co. 1/87 100 Rapids, Inc. 2/88 100 Petitioner did not directly own stock in any of the subsidiaries. Petitioner served as the Chairman of BEI's four-member board of directors. During 1986 to 1988, petitioner did not receive wages from BEI, TELCOR, or any of their subsidiaries. Nor did petitioner receive dividends from BEI during these years. BEI usually purchased the subsidiaries through debt assumption. The subsidiaries needed capital to cover their operating expenses and to stay in business. The majority, if not all, of the subsidiaries' assets had been encumbered by third- party lenders before BEI or TELCOR acquired the subsidiaries. Because of their poor financial positions, the subsidiaries could not obtain bank loans. Petitioner used his own assets to obtain financing for the subsidiaries. He borrowed approximately $14 million from banks at about 10-percent interest and pledged his ENSCO stock as collateral. Petitioner transferred the borrowed funds to BEI and TELCOR, which, in turn, transferred the money to their respective subsidiaries. BEI also lent money to other businesses that petitioner owned that were not subsidiaries. BEI and TELCOR each recorded the advances as "Notes Receivable-Melvyn Bell" on a general ledger account. Petitioner decided the amountPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011