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| Forms and Instructions - Recent Status - Chapter 11 Trustee Reports - Creditor's Comm. Updates - Contact Information |
July 10, 2002 Trustee's Report EVERGREEN SECURITY, LTD CASE NO. 01-00533-6B1 TRUSTEE REPORT TO CREDITORS’ COMMITTEE July 10, 2002 Ladies and Gentlemen: My last report to the Committee was April 17, 2002. This report will not repeat my prior reports, which can be found at www.evergreencreditorscommittee.com. Evergreen funds in excess of $3.7 million have been deposited to the bankruptcy accounts since my appointment. Four of the six managers of Evergreen have agreed to settle for $1.5 million and cooperation in other litigation. These funds are being held in escrow pending approval by the Court. Two additional managers have responded to the suit and their trials should be held in the fall. Surety Bank and Trust, Ltd. in the Bahamas is in liquidation. I have filed a claim with the bank’s liquidators in the amount of $5.1 million. The liquidators for the bank have estimated Evergreen may receive $4 million to $5 million, upon liquidation. The liquidation should be completed by September. I prevailed in my turnover action against Intrados in US Bankruptcy Court. Intrados has terminated their US counsel and is not responding to the US case. I will file another suit in Costa Rica this summer to continue my attempts for recovery. The Atlantic Portfolio Analytics & Management, Inc. suit for $8.5 million is in the discovery stage and should be tried this fall in Orlando. The Zylka suit includes twenty-seven defendants, which received part of the $27.7 million transferred to William J. Zylka. These suits are in the discovery stage and should be tried this fall or next spring in Orlando. James Conroy, attorney for William J. Zylka, is in the second month of his criminal trial in New York. He is one of the defendants in the Zylka suit, above. In May I filed fraudulent transfer suits against seventy-six brokers for in excess of $8 million of commissions. I plan to ask the Court to allow a test case against one of the brokers to determine the Court’s ruling on the law. Subsequent to the test case, I will ask the Court to order mediation of the other broker suits. Many of the investors provided me information relating to their brokers. This information was extremely helpful in the suits against the brokers. It would be helpful to know who investors made personal contact with, other then their broker and the six managers of Evergreen. If you had direct contact with an employee or representative of Evergreen, please send me their name, address, the time period and a brief description of your contact. Yesterday I filed a civil suit in the Bahamas against Gregg A. White, the owner of Evergreen from its incorporation until 1999, for in excess of $50 million. There have been over 3,000 claims filed for over $350 million. I have begun reviewing these claims and will file objections during August. Many of the objections will be for filing duplicate claims and claims filed by trustees without identification of the investor. Should your claim be objected to, you will receive written notice and will be able to respond in writing or attend a hearing in Court about your claim. If your claim was filed by a trustee or other representative and it listed their address, the notice will be mailed to them. I will try to have these hearings scheduled in the Court in Orlando for September. If you would like to provide me with any information in this case, please mail, fax or e-mail it to me. I have listed my numbers below. Please only provide me factual information. Rumors will not help me. You should continue to contact the Creditors’ Committee web site for information in this case. Also many newspapers have carried articles about this case. The largest collection of articles can be found at www.orlandosentinel.com. R. W. (Bill) Cuthill, Jr., CPA, CFE Chapter 11 Trustee Cuthill & Eddy LLP 1031 W. Morse Blvd., Suite 200 Winter Park, Fl 32789-3750 Phone 407-644-7455 Fax 407-628-5277 e-mail rcuthill@cuthilleddy.com |
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| Official Committee of Unsecured Creditors for Evergreen Security, Ltd. |