Upon further review, I'm still not clear how LVEN will ever actually see money from the Cruz deal as outlined in yesterday's PR. There are so many layers, i.e. encumbrances.
First off, we have to believe Cruz actually has BNI bank guarantees worth $400M. Anyone who has read quatloos.com about HYIPs and anyone who has checked into the shady past of BNI bank knows the dubious nature of such an instrument. Furthermore these things don't mature until March, 2000, so who knows what further stipulations apply to them that might even render them worthless prior to that date.
In any event, "The U.S. Guarantee Corp. has agreed through cash instruments to fund $70 million within 5 business days, $75 million within 30 days, $75 million within 60 days, $80 million within 90 days, and $100 million within 120 days of the first payment..." Recall this was from Exhibit B of the SC14D1 filing, dated July 28, 1999. By now Cruz should have $220M in his pocket, meaning that LVEN should have their promised $190M in cash right now. Where is it? Wouldn't any such conveyance be legally executed and thus on file with the Maricopa County recorder? No such records exist.
Also note from Exhibit A of the SC14D1 the following trusts:
Rick Eriksen Family Trust - 500,000 shares
Federico Cruz II Family Trust - 500,000 shares
Ronald F. Cruz Family Trust - 500,000 shares
Melvin Gary Cruz Family Trust - 500,000 shares
Federico Cruz Cordero Family Trust - 500,000 shares
Dr. Fred Cruz Family Trust - 500,000 shares
Are any of these "the Cruz family Trust" as mentioned in the PR? Perhaps all of these combined are? What did Cruz do to deserve getting all those shares? What restrictions are on them? Are they still there?
- Jeff |
