- 5 -
Louis metropolitan area. For the 12-month period October 1,
1996, through September 30, 1997, Royal Banks had earnings of
$1,721,000.
On April 24, 1996, Royal Banks lent $1.6 million to Robert
and Bonnie Havrilla (the Havrillas). Jefferson/Keeler Printing
Co. (Jefferson/Keeler) guaranteed this loan.4 By a deed of trust
dated April 24, 1996, Jefferson/Keeler granted a security
interest in certain real property that it owned.5 The Havrillas’
note was current through a payment made in July 1997; however, no
payment was made on the Havrillas’ note for August or September
1997, and at decedent’s death the Havrillas were in default on
their note.
On August 1, 1997, creditors of Jefferson/Keeler filed an
involuntary petition in Federal District Court seeking relief
under chapter 7 of the United States Bankruptcy Code. Royal
Banks was not a petitioning creditor in this case. The District
Court granted Jefferson/Keeler’s motion to convert the
involuntary bankruptcy case to a voluntary case under chapter 11
4 The guaranty was unconditional, absolute, and irrevocable.
The guaranty did not require Royal Banks of Missouri (Royal
Banks), as a condition to performance by Jefferson/Keeler
Printing Co. (Jefferson/Keeler), to seek collection from Robert
and Bonnie Havrillas (the Havrillas) or to enforce any security
interests or liens granted to Royal Banks by the Havrillas.
5 As of March 1996, the property was appraised at $2.1
million. Before the security interest was granted, there were no
other security interests or liens with respect to the property.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011