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Although Solv-Ex was required to sell all of its Canadian
operating assets and leases in order to raise cash, it still
retained ownership of its hydrocarbon, mineral, and metal
extraction technologies, numerous patents in the United States,
Canada, and elsewhere covering those technologies, both for oil
sands and oil shale (the retained technology), and land in
Albuquerque, New Mexico containing a research facility, office
space, a pilot plant, an acid plant, and machinery and equipment.
It also continued to employ research engineers. The existence of
those retained assets and personnel suggests that, as of the end
of 1997, Solv-Ex was in a position to continue its attempts to
become a successful operating company after it emerged from
bankruptcy.
At trial, Mr. Rendall testified that the retained technology
was not marketable as of December 31, 1997, because of his loss
of credibility attributable to the SEC investigation. Mr.
Rendall also testified, however, that the retained technology
still had substantial intrinsic value which would become apparent
to the marketplace once his credibility was restored through
proven usefulness of the technology in extracting minerals. We
interpret that testimony to be an acknowledgment by Mr. Rendall
that the retained technology had potential value to Solv-Ex
sufficient to enable it to emerge from bankruptcy as a viable
company.
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