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| Forms and Instructions - Recent Status - Chapter 11 Trustee Reports - Creditor's Comm. Updates - Contact Information |
Introduction Ladies and Gentlemen: My name is R. W. Cuthill, Jr. and I was appointed trustee for Evergreen Security, Ltd., Case Numer 01-00533-6B1, on March 14, 2001. This report is to advise you of my activities as trustee for Evergreen. BACKGROUND Evergreen filed for Bankruptcy under Chapter 11 of the US Bankruptcy Code on January 23, 2001 in the Middle District of Florida, Orlando Division. It subsequently filed a Statement of Financial Affairs and Schedules on February 21, 2001, showing assets of $427M and liabilities of $203M. An Official Creditors Committee was formed. Its Chairman is Brian M. Haynes and its Council is Hans Christian Byer. Additional information about the Creditors Committee can be found at its web site. This 341 meeting was begun on February 26, 2001. Mr. Martin Boelens, a principal in BJM International Services, Inc. (BJM), attended the meeting as a representative of the debtor. BJM was the manager for Evergreen. Mr. Boelens identified himself, but refused to answer any questions based on his Fifth Amendment Constitutional Rights. Soon thereafter the meeting was adjourned until today. TAKING CONTROL OF ASSETS My initial actions have been to take control of the assets of Evergreen. The bank accounts and securities accounts were frozen by Court Order. I have transferred the banks accounts to a new Debtor-In-Possession account for my signature. The legal department of Evergreen’s broker has agreed to provide information about the account to the Creditors Committee and me. I am reviewing the loans, advances, guarantees and claims, which make up over 90% of Evergreen’s assets. BJM has all of the computer and documentary records of Evergreen. In response to an emergency turnover motion I filed and they have agreed to turn over their computers and documentary records to me. I am in the process of moving these records to my offices. SEARCH FOR OTHER ASSETS I am preparing a report showing the source and uses of Evergreen’s funds. I have engaged Cuthill & Eddy LLP and am using their forensic accountants to assist me in preparation of this report. From this report, I will identify where the funds went and be able to make demand for their return. RETURN OF FUNDS I will make demand for funds not used in Evergreen’s normal course of business or funds which can be retrieved under the Bankruptcy Code. This will include fees and loans to insiders and others transfers of funds, which may be classified as preferences or fraudulent transfers. I will initially make demand for their return and take legal action if I do not gain compliance. OPERATION OF BUSINESS Evergreen has ceased operation and is no longer selling certificates to investors. BJM has also ceased operations. I have no immediate plans to resume operations and my activities will be focused on retrieval of the assets of Evergreen. COMMUNICATION WITH TRUSTEE The Creditors Committee’s web site was set up to provide Creditors information about the case. They will post this report to the web site. I will provide them with reports for posting approximately once a quarter during the case. I encourage you to use this resource to follow the case. Creditors or other interested parties may wish to provide information to me. Please provide me with factual information not rumors. You can send this to me as follows: R. W. Cuthill, Jr., Trustee Evergreen Security, Ltd. 1031 W. Morse Blvd., Suite 200 Winter Park, FL 32789-3750, USA FAX: 407-628-5277 Email: rcuthill@cuthilleddy.com Should you need to call, you can reach me at 407-644-7455, Extension 310. I would prefer you sending me information by mail, fax or E-mail, as telephone conversations take my time away from recovering assets. Remember there are thousands of potential creditors who may wish to communicate with me. I will now take the questions you may wish to ask me. R. W. (Bill) Cuthill, Jr., Trustee |
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| Official Committee of Unsecured Creditors for Evergreen Security, Ltd. |