Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : USXP . APAC . PKGP -- Ignore unavailable to you. Want to Upgrade?

To: scion who wrote (2106)	7/1/2008 8:15:09 PM
From: scion	Read Replies (1) \| Respond to of 2347

07/01/2008 336 STATUS REPORT. Doc 336 extract PART 3 ---------------- Altomare’s Demand The Receiver made demand on Altomare for the return of Company funds to the Receivership. Altomare responded with his own demand, for millions of dollars from the Company. That demand letter is attached as Exhibit D. The amounts requested have not been added to the Accounts Payable listing. Maintenance of website, etc. The Receiver has maintained the website and computer records of the Company. This has occasioned various payments to maintain domain names and the like while the various sales of divisions were pending. Telephone numbers used by customers were also maintained. Services for former employees The Receiver obtained and paid for W-2 forms for 2007 for the Company employees who worked at the Company before it closed. A number of employees paid for company expenses on their own credit cards while the Company was in operation but did not have the cash to advance for those expenses. When some of those employees recently received dunning notices for unpaid credit card bills, the Receiver paid those bills. The Receiver has also sent letters as requested on behalf of former employees to defer student loan repayment and to explain other changes in circumstances that were not the fault of the former employees. Approval of sales of subsidiaries The Receiver moved for and received approval for the sale of the three remaining operating subsidiaries, Mad Packers, Inc., Virtual Bellhop and Luggage Express. The reasons and justifications behind those sales were spelled out in prior reports. These sales have now been completed. Sports Express completed its payment of $100,000 for the assets of Virtual Bellhop and Luggage Express. Through the assistance of the Receiver’s sub-contracted assistant, the customer lists and other intellectual property were transferred to the purchasers. Jackson memorabilia In her second Report, the Receiver noted the morass of litigation surrounding the acquisition and auction of the Jackson memorabilia collection. Since then, the Receiver has continued to spend an inordinate amount of time and money on matters related to the Jackson memorabilia. The ownership of the collection is still disputed. The Company purchased the Jackson memorabilia collection from Vintage Associates, LLC, a/k/a Vintage Pop. The Company, however only paid a down payment of $150,000 for the collection and failed to pay the $3,850,000 balance it had agreed to pay. Because of this failure to pay, Vintage Associates, LLC claims that title to the collection did not pass to the Company. Two other entities, Winter International Investment and Overtoun Holdings, also claim ownership of the collection. Vintage Pop sued Winter and Overtoun in New Jersey and they brought in the Company as a third party defendant. The parties to the suit, including the Receiver, had been participating in a mediation of that lawsuit. That case was scheduled to go to trial shortly, but the complaint against Universal Express was dismissed on June 2, 2008, when counsel for Winter and Overtoun were permitted to withdraw from that representation. It is not known at this time whether those parties will continue to assert a claim to the collection. Michael Jackson and Janet Jackson had sued the Company and the auction company in Las Vegas before the auction for the return of some items in the collection of memorabilia. Universal Express, before the Receivership began, had settled that matter but then reneged on the settlement. As a result, the court in Las Vegas held the Company in contempt and ordered it to pay the fees of opposing counsel. Those fees were never paid. The receiver has re-instituted its portion of that settlement, which requires that certain specified items be returned to Janet Jackson and to Michael Jackson. However, Vintage Pop, from whom Universal purchased the Jackson collection, has intervened in that litigation, claiming that it is the owner of the goods supposedly belonging to Universal Express, and that Michael and Janet Jackson have no claim to the goods covered by the settlement. Before the Receivership, Universal Express had appealed the contempt finding to the Nevada Supreme Court. Counsel for Universal Express in that appeal sought to withdraw on grounds that the firm had not been paid. The Court would not let counsel out so long as the appeal was pending, but noted that there was no merit to an appeal at that juncture. The Receiver dismissed the appeal. The Receiver now pays storage fees to a facility in Las Vegas for goods not sold at the May 2007 auction and those sold but never paid for. The Receiver also learned that Universal Express had Jackson memorabilia stored in New York City that were not sent out for the auction. Apparently, according to the auctioneers, those items were not suitable for the auction. Altomare had never told the Receiver about those items. The Receiver had those items inventoried and has maintained them in storage. The Receiver also learned that Altomare held certain original master tape recordings of the Jackson family and others and was seeking to sell them on the side. The Receiver moved the Court to order Altomare to turn these recordings over to the Receiver. The Court so ordered, and the recordings are now in the Receiver’s possession and in insured storage in Miami. Monthly storage costs total $1525.05. The Receiver has spent $18,440.76 to date for inventory and storage costs. ...........