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included in this analysis, these ratios would increase to
approximately 54:1 at the end of 1989, 64:1 at the end of 1990,
and 75:1 at the end of 1991. PKVI LP was experiencing serious
financial difficulties as of 1989, and these difficulties
continued through 1990 and 1991.
Sixth, after 1988, PKVI LP was unable to obtain any
additional financing from unrelated parties other than a $125,000
loan from First Fidelity. PKVI LP entered into this loan
agreement with First Fidelity on or before October 16, 1989.
PKVI LP was also able to renegotiate its outstanding loan
agreements with Liberty Life and MGFP between December 31, 1989,
and December 31, 1991, but no additional financing was provided
to PKVI LP by either Liberty Life or MGFP as part of these
renegotiated agreements. Furthermore, a substantial portion (if
not all) of the $1,516,246 that was transferred from PK Ventures
to PKVI LP was received by PKVI LP during and after 1989. The
timing of the transfers from PK Ventures to PKVI LP coupled with
PKVI LP’s inability to obtain additional financing from unrelated
parties does not support a conclusion that the transfers from
PK Ventures to PKVI LP were bona fide loans.
Seventh, besides the initial capital contributions that were
made to PKVI LP, no evidence indicates that any of PKVI LP’s
limited partners other than PK Ventures transferred funds to the
partnership between September 15, 1986, and December 7, 1990.
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