- 4 - “on-farm energy plant”.3 In 1981, Mr. Tonn sold the on-farm energy plant to Laurington Corp. (Laurington), his wholly owned corporation. Under the terms of the sale, payments were to be made in installments. Between 1981 and 1983, Laurington sold the on-farm energy plant to three partnerships. Payments were also to be made in installments. The three partnerships were: (1) Laurington Energy Properties; (2) Independent Energy Systems I; and (3) Independent Energy Systems II (collectively, the Alternative Energy entities). Before 1987, the Alternative Energy entities entered into a royalty agreement with IEEI, whereby IEEI agreed to manufacture and sell on-farm energy plants and pay the Alternative Energy entities royalties on the sales. IEEI owned or leased property in Kiel, Wisconsin, where it planned to manufacture on-farm energy equipment. Sometime before March 27, 1987, respondent filed liens against the property of IEEI. On March 27, 1987, respondent’s agents entered the property of the IEEI plant in Kiel, Wisconsin, and posted a notice of seizure. On the same day, respondent’s agents went to Citizens State Bank in Kiel, Wisconsin, and agreed to discharge the liens against the IEEI property in exchange for the payment of $22,500. Citizens State Bank was a creditor of IEEI and also had liens against the IEEI property. The payment 3The “on-farm energy plant” was an ethanol-based power system for farms.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011