Thomas and Janice Gleason - Page 4

                                        - 4 -                                         
          Mr. Gleason purchased 35 percent of Target, a metal-stamping                
          business, for an initial investment of $35,000.  Then, in 1992,             
          Mr. Gleason invested $50,000 in each of two related S                       
          corporations, Alofs and Excellence Manufacturing, Inc.                      
          (Excellence), in exchange for interests of 20 percent.  Alofs,              
          like Target, was a metal-stamping business, and Excellence was a            
          seat assembly business.  All three companies were engaged in                
          supplying components to major automobile manufacturers.                     
          Mr. Gleason served as president of each of these corporations and           
          dealt with operational aspects.  A common group of investors                
          and/or officers was involved with each of the three companies (as           
          well as with other entities not directly relevant to the instant            
          litigation), operating to an extent not clearly explained by the            
          record under the name M/IC Partnership.                                     
          LBO Transaction and Aftermath                                               
               During late 1994, some shareholders in the companies became            
          interested in restructuring or monetizing their interests to take           
          advantage of anticipated consolidation in the automotive supply             
          industry.  Ernst & Young LLP (E&Y) was engaged to advise on                 


               2(...continued)                                                        
          extent, if any, of her formal interest in the entities.  She is a           
          party to this action primarily because she filed joint returns              
          with Mr. Gleason.  While we have framed the issues in terms that            
          would incorporate any potential joint ownership on the part of              
          Mrs. Gleason, the underlying background and events will, for                
          simplicity, be described largely from the perspective of                    
          Mr. Gleason’s activities.                                                   





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