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liquidation, were believed to be worth less than the obligations
that Pacer owed NAC. The settlement agreement states:
Pacer is presently selling its assets to Venco for an agreed
upon purchase price of $614,000. Such purchase price is to
be paid in monthly installments * * *. Pacer shall retain a
Security Interest in its assets as sold to Venco until Venco
has made payment in full of such purchase price, plus
interest. The purchase of the assets by Venco is subject to
the existing liens and security interest in or covering such
assets * * *.
Under the settlement agreement, Venco’s monthly installment
payments for Pacer’s assets were required to be paid to the
various creditors involved in the lawsuit. The settlement
agreement specifies the amounts of the monthly installment
payments and the manner in which they are to be divided among the
creditors. The settlement agreement also provides that
petitioner will not be released from his personal obligations
until the various creditors have received payments totaling at
least $162,735.2 Under the settlement agreement, in the event a
default occurred in the payment of any payment from Venco, NAC
was entitled to file a previously executed consent judgment in
favor of NAC and against Pacer and petitioners for the sum of
their debts to NAC.
2 This total comprises required installment payments
totaling $36,920 to NAC and installment payments totaling $24,494
to the State of Alabama Department of Economic and Community
Affairs, as well as satisfaction in full of petitioner’s $101,321
Federal tax liability.
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Last modified: May 25, 2011