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possibility of renegotiating higher rates on the sales
of power and intends to maintain tight expense control
at all three of its operational plants. The
Partnership may be able to obtain additional funding
from the limited partner. Management is also exploring
a possible reorganization or merger. The outcome of
these matters cannot be predicted at this time.
Note 6 to PKVI LP’s reviewed financial statements for the
year ended December 31, 1993, 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 funded in 1993 and
1992 by loans from the limited partner. Management is
also exploring a possible reorganization or merger.
The outcome of these matters cannot be predicted at
this time.
B. Litigation Involving SLPC, TBPC, and TPTC
A majority of PK Ventures’ income was generated by the
operations of its pipeline subsidiaries (i.e., SLPC, TBPC, TPC,
and TPTC). PK Ventures’ largest investments were in TBPC and
TPTC.
As of December 31, 1991, SLPC, TBPC, and TPTC were all
litigating separate matters. The matters being litigated
affected the corporations’ revenue streams. In particular, TBPC
did not receive any of the $483,000 of lease payments that it was
owed by Royster between April 1991 and June 1992. In addition,
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