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respect to the partnership’s financial status: “Management’s
plans include several steps which may mitigate the current
adverse financial condition. These steps include renegotiation
and reduction of short term debt * * * and reduction of certain
operating costs.”
Note E to PKVI LP’s audited financial statements for the
year ended December 31, 1990, set forth the going concern
position of the partnership. Note E stated, in pertinent part,
the following with respect to the partnership’s financial status:
The Partnership’s financial statements have been
presented on a going concern basis which contemplates
the realization of assets and the satisfaction of
liabilities in the normal course of business. At
December 31, 1990, partners’ capital is in a deficit
position of $667,182. Management plans to mitigate the
current adverse financial position by restoring one of
its plants to operating condition during 1991 and
completing construction projects on two hydroelectric
plants which are not yet operational to generate
revenues. In addition, P.K. Ventures, Inc., the
general and a limited partner, will continue to advance
cash to the Partnership as needed. * * *
Note 6 to PKVI LP’s reviewed financial statements for the
year ended December 31, 1992, set forth the going concern
position of the partnership. Note 6 stated, in pertinent part,
the following with respect to the partnership’s financial status:
The Partnership’s financial statements have been
presented on a going-concern basis which contemplates
the realization of assets and the satisfaction of
liabilities in the normal course of business. Cash
flow deficits and capital needs were supplied and
funded in 1991 by P K Ventures, Inc. In 1992, cash
flow deficits and capital needs were funded by a loan
from the limited partner. Management is exploring the
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