Mark is doing all he can for the company and the shareholders.
Midland Inc. Announces the Establishment of a Liquidating Trust
Business Wire - June 29, 1998 07:17
%MIDLAND MIDL %COLORADO %GEORGIA %TEXAS %OIL %ENERGY %GAS V%BW P%BW
DENVER--(BUSINESS WIRE)--June 29, 1998--Midland, Inc. (OTCBB: MIDL)
today announced that it has created a liquidating trust for the purpose of
collecting all assets and satisfying all liabilities of Midland, Inc. as of
June 28, 1998. These assets consist primarily of claims against Mr. Daniel
W. Fisher, formerly CEO and Chairman of Midland, Inc. and entities with
which Mr. Fisher is associated. These claims relate primarily to the
apparent theft by Mr. Fisher and his affiliated entities of approximately
$600,000 in gross offering proceeds from the sale of restricted Class A
Preferred Stock and Class A Warrants of Midland, as well as the apparent
theft by Mr. Fisher and his affiliated entities of approximately 180,000
shares of Class A Preferred Stock in Midland and an at present
indeterminable number of Class A Warrants. A portion of the Series A
Preferred Stock and Series A Warrants taken by Mr. Fisher and his
affiliated entities were apparently sold through Merrill Lynch !
at 15303 Dallas Parkway, Dallas, TX, and a portion of these shares and
warrants may also have been sold through an offshore securities account.
Midland has obtained the commitment of the off-shore brokerage to
interplead the stock and/or the proceeds from the sale by Mr. Fisher of
that stock into a court in the Bahamas so that the liquidating trust and
Mr. Fisher may establish to the satisfaction of that court their respective
legal entitlements to the stock and sales proceeds.
The liquidating trust has engaged counsel and will initiate suit this
week against Mr. Fisher and his affiliated entities in the United States to
establish its claims. In addition to Mr. Fisher and his affiliates having
taken the shares discussed above, Mr. Fisher and his affiliates defrauded
Midland through the delivery of false and misleading financial statements
on its acquisition of Arcon Energy. First, the patents which Mr. Fisher and
his affiliated entities claimed that Arcon Energy owned are the property of
an entity known as Nova Gaz. Midland has been informed and believes that
there are outstanding court orders preventing Nova Gaz from transferring
the patents at issue to either Arcon Energy or Midland. Second, the patents
were valued at $15,000,000 on the financial statements presented Midland by
Mr. Fisher and his affiliated entities. On June 10, 1998, Mr. Fisher and
his affiliated entities presented proposed audited financial statements
which showed that, for fi!
nancial reporting purposes, the value of the patents was zero. Third, the
oil and gas properties presented Midland by Mr. Fisher and his affiliated
entities were valued at $25,000,000 on the financial statements presented
to Midland. The proposed audited financial statements of June 10, 1998, set
forth no oil and gas properties. Fourth, Mr. Fisher and his affiliated
entities claimed they owned all of the stock of Arcon Energy and
transferred the same to Midland; however, it was subsequently determined
that there were numerous persons to whom Mr. Fisher had sold stock in Arcon
Energy and who claimed to be entitled to Midland shares. There are further
claims against Mr. Fisher and his affiliated entities, including
misrepresentations of liabilities, all of which will be disclosed to the
public upon proof in the applicable court.
Midland is still awaiting the new CUSIP number for 3:2 split previously
announced and will today notify the National Association of Securities
Dealers, Inc., of the dividend date, and upon satisfaction of the
requirements of the NASD will announce to the public the record date.
Mr. Fisher resigned in accordance with applicable law. Mr. Fisher may
currently be reached in the Bahamas.
Please address all inquiries concerning Midland to Mr. Gary Swancey at
770/389-5645
CONTACT: Midland Inc. Investor Relations
Gary Swancey, 770/389-5645 |
