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promissory note, he did not intend to have PKVI LP repay any of
this amount to PK Ventures. In addition, Rose, as a general
partner with a 70-percent interest in PKVI LP, did not intend to
repay any of this amount to PK Ventures at the time that he
signed the $1,516,246 promissory note.
No legal action was taken by PK Ventures against Rose to
force repayment of the $1,516,246 promissory note. Rose owned
approximately 85 percent of the stock of PK Ventures during 1991.
In a letter dated July 6, 1992, to Douglas W. Kroske,
C.F.A., senior vice president of Liberty Capital Advisors, Inc.,
Rose made the following statements concerning the transfers from
PK Ventures, TBPC, and TPTC to PKVI LP:
Since 1986, PK Ventures Inc has invested over
$1.5 million in these hydroelectric projects, and is
willing to continue but needs some help from Liberty
Life. * * *
* * * * * * *
There has been a delay on the financial statements for
the year ending 12/31/91. During the year based on
Ernst & Young’s review, $419,996 cash was provided to
the Partnership from PK Ventures, Inc. Since inception
to 12/31/91 a total amount of $1,516,246 has been
injected, and our auditors are now going to make
PK Ventures Inc write this off as it is an
uncollectible claim against the Partnership. The
$419,996 cash of 1991, was used approximately for
equipment and Bynum canal repairs of $225,661, and the
balance used in payments to Liberty Life.
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