1985-88 Approving The Negotiated Settlement In The Case Of Loin Capital Group.1
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KODIAK ISLAND BOROUGH
RESOLUTION NO. 85 -88 -R
A RESOLUTION OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH APPROVING
THE NEGOTIATED SETTLEMENT IN THE CASE OF LION CAPITAL GROUP.
WHEREAS, on May 10, 1985 a meeting was held of the Official
committee of School District and Municipal Creditors as well as all members of
its constituency (collectively the "Committee ") in In re Lion Capital Group,
et al. 84 -8 -10668 through 84 -B -10672 (HCB), matters pending in the United
States Bankruptcy Court for the Southern District of New York; and
WHEREAS, throughout the course of said meeting, held at the office
of Anderson Russell Kill 6 Click, P.C. ( "ARKO "), 666 Third Avenue, New York,
New York, a representative of Kodiak Island Borough, a member of the Committee
was in attendance; and
WHEREAS, at said meeting a vote was taken concerning the revised
compromise and settlement of the combined claims of members of the Committee
in an adversary proceeding entitled Bradford Trust Company v. Lesser, et al.,
85- 5608A, in which Kodiak Island Borough is named defendant; and
WHEREAS, under the terms of the proposed revised compromise and
settlement, and pursuant to the calculation of all known existing assets and
liabilities of the Estate of Lion Capital Group, the Committee, plus two
additional parties (collectively called the "Repo Creditors ") are likely to
receive pursuant to a Plan of Reorganization, $29.8 million; and
WHEREAS, under the terms of the proposed revised compromise and
settlement the projected $29.8 million cash proceeds or so much thereof as the
Trustee can promptly distribute, less (from the Committee's portion) remaining
legal fees and expenses due to ARKO as fixed by Court Order, will be
distributed among the Repo Creditors on a RER rata basis, and
WHEREAS, under the terms of an inter- creditor agreement reached
between and among the Repo Creditors on November 9, 1984 the $29.8 will be
distributed among the Repo Creditors on a pro rata basis until all Repo
Creditors have recovered 70% of their claims; thereafter all the next proceeds I
of the $29.8 million shall be distributed pro rata to those Repo Creditors who
would have been in a position to benefit if the preference claims asserted by
the Trustee on Schedule B in his Amended Answer, Counterclaim and Crossclaims
had proceeded until such Repo Creditors had recovered 74% of their claims, at
which time distributions would return to a pro rata distribution among all
Repo Creditors; and
WHEREAS, action is required to authorize our participation in and
approval of the compromise and settlement as summarized hereinabove; and
WHEREAS, adoption of this resolution has been this date formally
moved, seconded, voted upon by us and approved, it is hereby
RESOLVED, that the Assembly of the Kodiak Island Borough does hereby
adopt and approve the terms of the foregoing compromise and settlement; and it
is further
authorized and directed, as our representative and agent, to vote, acknowledge
or execute documents and instruments, and otherwise do all things necessary,
convenient or proper in our name and on our behalf as is necessary to
effectuate our participation in the aforesaid compromise and settlement.
BE IT FURTHER RESOLVED, this resolution supersedes Resolution No.
85 -9 -R, approved February 7, 1985.
Adopted this Ird day of October, 1985.
KODIAK ISLAND BOROUGH
ATTEST:
Recommended by: Finance Director
RESOLVED, that Bryce S. Weeks, Finance Director /Treasurer is hereby
By/%.i A. get
Borough Clerk
Drafted by: Anderson, Russell, Kill & Olick, Attorneys of New York
Resolution 85 -88 -9
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