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shareholders were aware that EDS was seeking new investors for
the TTS. In the counterclaim, EDS alleges that, on or about
January 16, 1991, RTA interfered with an advantageous business
relationship between EDS and one Charles White. A memorandum
attached to the counterclaim from “Bob Wagner, Resources
Technology Associates, Inc.” to “Mr. Charles White” mentions the
lawsuit and claims an interest in, among other things, the TTS
equipment. On November 6, 1991, EDS entered into a contract to
sell the TTS equipment for $3 million ($750,000 before delivery)
to a company of which Mr. White was the controlling shareholder
(Asset Holding Co., which assigned its rights to Tire Recyclers
Inc.). Petitioners have failed to prove that, as of the end of
1991, there was no realistic possibility of an actual recovery
from EDS or its guarantors.
D. Subjective Belief
We have taken into account the testimony of the two
shareholders who testified: Walter W. Manley II, and Richard T.
Wagner. It is clear that, at some point, both of those
shareholders lost confidence in the TTS investment. Mr. Manley
testified about his refusal in late 1990 or early 1991 to post
the necessary $50,000 bond following the successful effort to
persuade a court to issue an injunction: “Because at that
particular time, I was the person providing the money, and I had
determined considerably before then that it was a worthless
project, and * * * I wasn’t about to put good money after bad
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