- 4 - station and made some minor improvements. Because of the incomplete funding, the radio station did not begin operating profitably or generating cash-flows as projected by petitioner’s business plan. Lawsuit by Gnat Robot Corp. and Mr. Perot By the end of 1990, Mr. Perot became concerned about his investment in the venture. Gnat Robot Corp. subsequently requested Modern World to find someone else to provide a letter of credit. In early 1991, Gnat Robot Corp. and Mr. Perot instituted a lawsuit against First City Bank, Modern World, Mr. White, Linda Gale White (Mrs. White),4 and petitioner (collectively, defendants) to enjoin First City Bank from drawing upon the letter of credit and to award Gnat Robot Corp. and Mr. Perot a 100-percent equity interest in Modern World (Gnat lawsuit). After Gnat Robot Corp. and Mr. Perot failed to obtain an injunction, First City Bank drew upon the letter of credit. Gnat Robot Corp. and Mr. Perot continued pursuing the Gnat lawsuit to recover the $2.5 million and to obtain the 100-percent equity interest in Modern World. After a jury trial, the defendants were ordered jointly and severally to pay Gnat Robot Corp. and Mr. Perot $2.5 million plus interest. Mr. White, Mrs. White, and petitioner were ordered to relinquish their equity 4 Mrs. White, Mr. White’s spouse, was a part owner of Modern World and participated in the agreement with Gnat Robot Corp. with regard to the letter of credit.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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