- 9 -
Sometime in September 1993, the bankruptcy court granted the
trustee's request to retain an independent law firm as special
counsel to investigate and prosecute possible fraudulent
conveyance claims. The trustee believed that the alleged
fraudulent transfers arose from the transactions that accompanied
the acquisition by New Manchester of Old Manchester's assets.
On February 24, 1994, counsel for petitioners and E&M
Investments Co. served an answer to the bankruptcy court in
connection with the trustee's effort to recover approximately $11
million from, inter alia, petitioners.
On February 28, 1994, petitioners submitted an offer in
compromise to the trustee in the amount of $300,000 to settle the
foregoing claim. Sometime in April 1994, the trustee petitioned
the bankruptcy court for an order authorizing the acceptance of
the offer in compromise regarding disputed claims against
petitioners and E&M Investments Co., Kramer, Bremberg, and other
entities. The trustee notified the bankruptcy court that
Despite the disparity between the $11 million claim
asserted by the Trustee against [petitioners], and the
offer of $300,000 made by ***[petitioners] to settle
the LBO litigation and any other claims of the estate
against ***[petitioners], the Trustee believes the
offer of settlement to be a good faith offer predicated
upon ***[petitioners'] evaluation of their exposure and
costs.
The trustee also noted that certain third parties or creditors
might object to the terms of petitioners' offer in compromise,
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
Last modified: May 25, 2011