Farnzworth, the bankruptcy filings show the use of company shares to discharge personal debt.
Class 16: Claim of Dennis Joslin
This class consists of the secured claim of Dennis Joslin in the approximate amount of One
Million Five Hundred Thousand Dollars ($1,500,000.00) which claim is secured by the assignment
of Three Hundred Fifty Thousand (350,000.00) shares of restricted stock in Wicklund Holding
Company given by Debtor for security. Debtor and Wicklund will be credited with the value of this
stock as of the effective date and the balance of their claim will be treated as a Class 20 unsecured
claim.
Class 17: Claim of Edgewater Beach Resorts Partnership
This class consists of the claim of Edgewater Beach Resorts Partnership in the amount of
$38,534.80 as of the filing date, which amount has being reduced to judgment with a certified true
copy having been recorded in the Public Records of Bay County, Florida. This claim is secured
by the assignment of 166,744 shares of free trade stock in Wicklund Holding Company given by
Debtor for security. This creditor has lost or misplaced its stock and a replacement certificate for
same will be reissued. This claim will be satisfied by crediting Debtor with payment of an amount
equal to the value of the free trade stock as of the effective date with the balance to be treated as a
Class 18 unsecured claim in the approximate amount of Eighty Thousand Dollars ($80,000.00).
Class 20: Unsecured Claims Of Debtor as Guarantor of Debts of
Wicklund and its Affiliates or as Co-Debtor/Defendant with Wicklund
This class consists of the claims of seven creditors holding claims in the amount of
$4,793,145.00. With the exception of the Finance Network LLC d/b/a Export Finance Bank
(hereinafter “Export Bank”), whose claim is based on litigation which is stayed as to Debtor and
which is pending as to Wicklund, these debts were created as a result of Debtor’s guaranty of
Wicklund obligations and Wicklund has agreed to the issuance of Wicklund Treasury Stock by
issuing shares numbering approximately two-thirds of the indebtedness owed each creditor (eg. a
$1,500,000.00 claim will receive 1,000,000 shares of Wicklund Stock). Upon confirmation of
Debtor’s Chapter 11 Plan of Reorganization, Wicklund, if not already issued, will issue stock to the
creditors in this class and upon the issuance of same Debtor will be released from any liability to said
creditors. Further, upon the sale of the Wicklund stock, any indebtedness of Wicklund to the
creditors in this class will be deemed satisfied and paid in full. The distribution of stock to members
of this class is in addition to any Wicklund stock previously given as security to a member of this
class. A chart indicating said creditors and the amount of stock they are to receive is attached hereto
as Exhibit “C”. |
