Atlantic Gulf Communities Announces Settlement With Receivers in Florida Home Finders Case.PORT ST. LUCIE, Fla.--(BUSINESS WIRE)--Aug. 29, 1997--Atlantic Gulf Communities (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :AGLF AGLF Association for Governmental Leasing and Finance AGLF Asian Government Leaders Forum ) and Dennis Basile and James Theriac The´ri`ac n. 1. (Old Med.) An ancient composition esteemed efficacious against the effects of poison; especially, a certain compound of sixty-four drugs, prepared, pulverized, and reduced by means of honey to an electuary; - called , Co-receivers of the assets of Florida Home Finders Inc. (FHF FHF Fédération Hospitalière de France FHF Fred Hollows Foundation FHF Fulminant Hepatic Failure FHF Fibroblast Growth Factor Homologous FHF Frosty, Heidi, and Frank (radio show) ) Friday announced a settlement of their disputes. Atlantic Gulf Communities was the original owner of Florida Home Finders and sold the company in 1995 for approximately $3.5 million, including $3 million of purchase money financing. The purchaser failed to pay to Atlantic Gulf in excess of $1 million under the purchase money financing, which remains due and owing due and owing adj. (See: due). to Atlantic Gulf, but was written off its books in 1995. In October 1995, Dennis Basile and James Theriac were appointed as Co-receivers of the assets of FHF due to escrow account irregularities which occurred after Atlantic Gulf sold the company. The Co-receivers brought suit against Atlantic Gulf and others to recover funds based on those escrow account irregularities. Atlantic Gulf responded that it had no knowledge of these irregularities, and defended its interests in court. Through mediation, the parties were able to reach a settlement whereby the Co-receivers agreed to release their claims against Atlantic Gulf in exchange for the following: 1. Atlantic Gulf agreed to release all of its claims against the receivership estate, including without limitation, the right to collect in excess of $1 million owned under the purchase money financing; the right to enforce a negative covenant A provision found in an employment agreement or a contract of sale of a business that prohibits an employee or seller from competing in the same area or market. A negative covenant is commonly used by businesses, particularly those that depend upon trade secrets for their requiring Atlantic Gulf's approval of the sale of the assets of FHF; and the right to collect an additional $88,861.70 for expenses of FHF, advanced by Atlantic Gulf in March of 1995; and 2. Atlantic Gulf agreed to pay the sum of $150,000 to the Co-receivers as a good faith payment to help defray de·fray tr.v. de·frayed, de·fray·ing, de·frays To undertake the payment of (costs or expenses); pay. [French défrayer, from Old French desfrayer : des-, lost escrows, without admission of any liability in connection with the escrow account irregularities. Atlantic Gulf and the receivers stated that they agreed to this settlement to minimize the additional legal fees that would be required to continue to prosecute and defend this suit. CONTACT: Atlantic Gulf Communities Harry Rose, 305/859-4376 Internet Address: http://www.atlanticgulf.com |
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