- 3 -
At the time the petition was filed, petitioner's principal
place of business was located in San Diego, California.
Prior to July 1, 1987, Karl Motsenbocker (Motsenbocker)
owned 82.5 percent of the shares of stock in Peoplefeeders, Inc.,
a closely held California corporation that was the parent
corporation of a group of affiliated corporations that owned and
operated a chain of pizza restaurants under the name of Square
Pan Pizza.
In the summer of 1987, Jeffrey Partrick (Partrick) and three
other individuals formed HPPW Restaurants, Inc. (HPPW), and on
July 1, 1987, HPPW acquired for $3,317,560 all of Motsenbocker's
shares of stock in Peoplefeeders and Motsenbocker's ownership
interest in a related partnership.
The $3,317,560 purchase price for the stock in
Peoplefeeders and for the related partnership interest was
reflected by and was to be paid as follows:
Form of Payment Amount
Cash at closing $ 167,560
Promissory notes* due:
Sept. 1, 1987 150,000
Mar. 31, 1988 1,500,000
June 30, 1992 1,500,000
Total $3,317,560
* Interest accrued on the promissory notes at
an annual rate of 3-1/4 percent over the
prime rate.1
1 After July 1, 1990, the interest rate on the June 30, 1992,
promissory note increased to 3-3/4 percent over the prime rate
and after July 1, 1991, the interest rate on the third promissory
(continued...)
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