present, John D. Wilson, Esq., California counsel representing
Plaintiff Rodeo Canon and Associates and David Perry. Mr. Hurley Reed,
President of Consolidated Resort Enterprises, Inc., MPTV Inc., and
Continental Resort Services also present. Ms. Hughes advised Court she has
with her today originals of the corporate minutes, corporate resolutions,
copies of stock certificates and the original corporate books as requested
by Plaintiff, but she does not want to release these originals and would
rather Plaintiff and his counsel review them at the break. As a
housekeeping matter, counsel advised Court Lake Trop LLC has filed
bankruptcy and requested they be dismissed from this action. COURT ORDERED,
Lake Trop LLC DISMISSED WITHOUT PREJUDICE.
Counsel presented their opening statements. Testimony and exhibits
presented. (See worksheets.)
2:50 PM - Mr. Davis advised Court parties had reached an agreement and would
like to put the settlement on the record. Mr. Davis said the understanding
is that three of the Defendants represented by him, Consolidated Resort
Enterprises, Inc., Continental Resort Services and MPTV Inc., will sign a
new promissory note payable to Plaintiff, start date will be October 4,
2002, in four months Defendants will be able to pay $1,054,000, in six
months from that point pay $1,300,000, in eight months from that point pay
$1,400,000 and in one year from that point pay $1,700,000; interest will
accrue on amount due starting October 4, 2002 at rate of 6%. Mr. Davis said
when and if Lake Trop LLC gets out of bankruptcy, they will be able to get a
second trust deed up to total amount of $12,500,000. Mr. Wilson noted this
does not become effective as to Lake Trop LLC, unless they are dismissed
from bankruptcy and there is an existing first trust deed now against the
property of $7,200,000; it would be a second trust deed, but it would be
subject to subordination to a new first trust deed up to a maximum of
$12,500,000. Mr. Davis confirmed Mr. Wilson's understanding.
Counsel indicated they would use transcript of this proceeding as the
settlement agreement and will submit dismissal papers after everything is
properly signed. Mr. Wilson said there would be a separate corporate
resolution authorizing Defendants to enter into the settlement agreement
signed by the President of each company.
Mr. Wilson informed Court Plaintiff still wants to proceed with a judgment
against the James Vellema Trust and if Plaintiff is able to collect any
monies from the Trust, that amount will be credited against the other three
Defendants. Counsel advised Kennedy Funding Group Inc. and Anglo-American
Financial have been dismissed. Court instructed Mr. Wilson to get a default
and do prove-up so as to enter a judgment against the James Vellema Trust.
Mr. Wilson said judgment would be for $1,700,000 and he would submit an
appropriate motion for attorney's fees and costs. Court noted promissory
note is in evidence, today was the scheduled trial date and James Vellema
Trust is not represented here and James Vellema signed in his individual
capacity; Mr. Wilson can submit appropriate documents to the Court. Mr.
Wilson informed Court promissory note for $1,700,000 can be paid off by
Defendants in earlier stages and those buy-out dates and numbers have been
represented; interest would run on the total $1,700,000. Mr. Wilson said
his client would agree that if there is an early buy-out, that no interest
would accrue from October 4, 2002 to the buy-out date. Court instructed
counsel to prepare the appropriate documents for Court's signature to
confirm this settlement. COURT ORDERED all exhibits returned to counsel. |
