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interest in Modern World to Gnat Robot Corp. Before the judgment
was entered against Modern World, Mr. and Mrs. White caused
Modern World to seek bankruptcy protection.
During late 1991 and early 1992, several Texas newspapers
reported the Gnat lawsuit. The newspaper headlines and
underlying stories mostly described the Gnat lawsuit as a legal
fight between Mr. White and Mr. Perot. Some of the articles,
however, made references to petitioner. After the Gnat lawsuit,
petitioner unsuccessfully attempted to raise venture capital to
acquire other radio stations.
First City Bank Receivership
During 1992, the Federal Deposit Insurance Corporation (the
FDIC) took control of First City Bank for reasons unrelated to
the venture and established a receivership to liquidate its
assets and pay off its debts. An entity, First City Liquidating
Trust Loans, L.P. (FCLT), was created to receive any assets
remaining after all debts had been paid and to distribute those
assets to a corporation that had obtained the rights to those
assets (purchasing corporation). The FDIC set aside $20 million
of First City Bank’s assets to create a reserve for claims
against and litigation expenses incurred for First City Bank.
Any funds remaining after the resolution of all claims against
First City Bank were to be transferred to FCLT.
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