PK Ventures, Inc. and Subsidiaries, et al. - Page 29

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          determine the participating percentages of the partners in such             
          additional investments, to sell or otherwise dispose of all or              
          substantially all of the partnership’s property attributable to             
          any investment, to permit any agreement between the partnership             
          and any general partner or any person controlled by or                      
          controlling or under common control with a general partner, and             
          to permit the transfer or assignment, in whole or in part, by a             
          partner of his interest in the partnership.  Prior to                       
          February 16, 1990, PK Ventures needed the approval of limited               
          partners holding at least 67 percent of the aggregate voting                
          percentages of the limited partners of PKVI LP to exercise its              
          authority over these matters.  PK Ventures’ increased                       
          participation in PKVI LP’s affairs during the time in which it              
          was transferring significant amounts of funds to the partnership            
          does not support a conclusion that the transfers from PK Ventures           
          to PKVI LP were bona fide loans.                                            
               Ninth, based upon Rose’s experience in corporate finance, we           
          are convinced that he could have arranged for the transfers from            
          PK Ventures to PKVI LP to occur under terms significantly closer            
          to arm’s length than those that were actually chosen.  This                 
          conclusion is bolstered by our consideration of the structure and           
          formality of (1) the financing arrangements into which                      
          PK Ventures had entered in connection with the purchase of the              
          stock of SLPC, TBPC, TPC, and TPTC; (2) the Summit Trust loan;              






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