In still more legal news, the Tampa Bay Business Journal published an article on maneuvering in the National Gold Exchange bankruptcy case.
An attorney for Sovereign Bank, the major secured creditor of National Gold Exchange, blasted a financial disclosure statement filed with the Tampa coin dealer's proposed Chapter 11 bankruptcy reorganization plan.
Robert Soriano, a shareholder in Greenberg Traurig's local office, called the statement "pie in the sky numbers on a piece of paper."
Sovereign contends NGE owes it nearly $35 million on loans. After liquidating some rare music machines owned by Mark Yaffe, NGE's vice president and treasurer, and part of the coin inventory, the company wants to make monthly payments to the bank over six years.
The bank objects to that, especially since NGE receivables reported to the bank are "bogus" and the coin inventory collateral that was supposed to be worth $26 million is not, Soriano said, questioning the source of money for the proposed monthly payments.
"There's nothing in the disclosure statement to indicate where that's coming from," he said. "There's no evidence it's feasible. The plan doesn't make any sense."
Soriano argued that the bank's investigation into the company showed $232 million flowed through the business in 12 months, yet with all this cash it showed little in receivables.
"There's hundreds of millions of dollars not accounted for," he said, contending the solution is a quick and orderly liquidation of assets then pursuit of accounts receivables and possible lawsuits. "We don't think it was a legitimate company."
To read the complete article, see:
Lead creditor lambastes NGE's gameplan
To read an earlier E-Sylum article, see:
BANKRUPT COIN DEALER NATIONAL GOLD EXCHANGE SHUTS DOWN
Wayne Homren, Editor
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