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Group and CKS, derived substantial fees and other income in
connection with the JetFleet I and JetFleet II partnerships. Cap
Group’s original business goal was to arrange for the syndication
and marketing to investors of the JetFleet I and JetFleet II
partnerships. Cap Group was to act as sponsor and managing
general partner of the JetFleet I and JetFleet II partnerships.
It leased and managed the aircraft equipment on behalf of each
partnership and its investor-partners. In exchange for Cap
Group’s services it was to receive fees and a percentage of each
partnership’s cashflow. Up until approximately 1994, CKS
marketed interests in the JetFleet I and JetFleet II partnerships
to investors.
From approximately 1994 through 1997, the JetFleet I and
JetFleet II partnerships were not being marketed while Crispin
and others considered plans and undertook steps for consolidating
those two partnerships into a publicly held corporation. As of
December 1996, Cap Corp. and the management of the JetFleet I and
JetFleet II partnerships were making progress towards obtaining
consents from over 90 percent of the investor-partners in each
partnership to effect the consolidation of those two partnerships
into a new publicly traded corporation. At that time, however,
ultimate approval of the proposed consolidation of those two
partnerships was by no means certain. It was not until November
1997 that the votes respecting the proposed consolidation were
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