- 5 - Dard as collateral for Nisona’s nonrecourse note. The PPM further states that Dard purchased the EMS for $337,500 in 1980 from Consumer Energy Funding, Inc. (CEF), an unrelated party. According to the PPM, CEF was organized in 1980 and had limited experience in the field of energy management and in the care or supervision of systems similar to the one being acquired by Sav- Fuel. The PPM states that CEF entered into a user agreement with Gould dated September 30, 1980. CEF was to operate and service the energy management equipment to be installed at the Gould manufacturing plant. Under the user agreement between CEF and Gould, Gould was to pay CEF 50 percent of the gross energy savings realized from the use of the energy management equipment. Sav-Fuel was to enter into a management agreement with CEF sometime around November 1980. Pursuant to the agreement, CEF was to install and manage the EMS in exchange for certain management fees. CEF was to retain 15 percent of the amount received from Gould and was to remit the remaining 85 percent to Sav-Fuel. Taking into account Sav-Fuel’s obligation to Nisona, Sav-Fuel was to be entitled to 8.5 percent of any savings generated by the EMS. It is unknown whether the EMS was installed at Gould’s manufacturing plant and whether it ever produced substantial energy savings.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