Bruce McNall complies with order; turns over corporate assets to trustee.Bruce McNall, the former majority owner of the Los Angeles Kings The Los Angeles Kings are a professional ice hockey team based in Los Angeles, California, USA. They are members of the Pacific Division of the Western Conference of the National Hockey League (NHL). now under a prosecutorial pros·e·cu·to·ri·al adj. Of, relating to, or concerned with prosecution: "a huge investigative and prosecutorial effort" Lucian K. Truscott IV. cloud, last week complied with a federal bankruptcy court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. trustee's demand that he turn over all his corporate assets to the trustee. McNall, 44, a thoroughbred horse owner, coin collector and Arcadia native, is reported to be preparing guilty pleas to four pending federal charges of fraud and conspiracy, in connection with loan documents he provided to lender Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. and others. Essentially, it has been alleged that McNall and co-conspirators overstated their financial position to induce lenders to extends loans. Now, McNall cannot re-pay the IOUs, including $120 million owed to Bank of America, and another $120 million to French bank Credit Lyonnais. An involuntary bankruptcy was declared for McNall corporations on May 13 at U.S. Bankruptcy Court in downtown Los Angeles Downtown Los Angeles is the central business district of Los Angeles, California, located close to the geographic center of the metropolitan area. The sprawling, multi-centered megacity is such that its downtown core is often considered just another district like Hollywood or . McNall has not been formally charged by federal prosecutors, nor indicted INDICTED, practice. When a man is accused by a bill of indictment preferred by a grand jury, he is said to be indicted. . Two associates pled guilty to charges related to the McNall case last month. Usually, in a bankruptcy case in which officials suspect financial shenanigans shenanigans Noun, pl Informal 1. mischief or nonsense 2. trickery or deception [origin unknown] , a trustee is appointed to take control of the estate. The purpose of the trustee is to preserve the estate. But McNall sidestepped court authority by placing the bulk of his assets into a special creditors' trust, allowed under state law provisions. McNall's lawyers contend McNall took the step to ensure orderly distribution of remaining assets to McNall's creditors. The special trust was created by McNall's lawyer, Ken Klee of the Mid-Wilshire-based law firm Stutman, Treister & Glatt Glatt may refer to:
Klee called the special trust, administered by a McNall-selected trustee (who received a $10,000 check from McNall) "an alternative to a formal bankruptcy proceeding." Klee said that the special trustee was an individual "above reproach." But the court-appointed trustee, Todd Neilson, in papers filed with the bankruptcy court, challenged McNall's special trust, calling the whole arrangement a way for McNall to remain in control of his estate. Last week, McNall decided to no longer contest the court-appointed trustee's authority. "The settlement agreement provides that the (special trust) will be transferred ... to Neilson," according to a news release from Rick Wynne of Century City-based Levene & Eisenberg, the top-flight bankruptcy firm which is now McNall's counsel. Last week, Wynne said, "We have come to an agreement with Todd (Neilson) which will achieve the same results we wanted to achieve through the special trust." |
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