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Cash $7,955,796
Unamortized Organization costs 39,388
Investment in Pacific Gateway 2,328,218
Investment in Pacific Landmark (1,358,431)
Liabilities (6,193)
Subtotal 8,958,778
On June 20, 1991, Dondi transferred its 15-percent limited
partnership interest in IHCL to the FDIC, as receiver for Vernon.
The FDIC transferred this interest in IHCL to Mr. Manchester in
exchange for his $5 million payment. As a result, THEI held a 1-
percent interest as general partner and an 84-percent interest as
a limited partner. Mr. Manchester, as Dondi’s successor, held the
remaining 15-percent limited partnership interest and succeeded to
Dondi’s capital account.
On June 21, 1991, the parties executed a second amendment to
the IHCL Restated Agreement. The second amendment provided that
IHCL’s net income would be allocated first to the partners who had
negative capital account balances and, thereafter, to the partners
pro rata.
At the end of 1991, the balance sheet of IHCL set forth its
book value as follows:
Cash $9,098,388
Unamortized organization costs 39,388
Note receivable from THEI 2,619,833
Investment in Pacific Gateway 2,660,677
Investment in Pacific Landmark (3,967,304)
Liabilities (1,847)
Subtotal 10,449,135
IHCL filed a 1991 information return (Partnership Return of
Income) reporting the allocation of 99 percent of its net income to
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Last modified: May 25, 2011