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Continued: Cash passed through many hands

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  • Last update: January 26, 2009 - 9:22 PM

 

Doug Kelley, the receiver overseeing Tom Petters' personal and business estates as the businessman prepares to defend himself against federal fraud charges, says Petters had more than 100 businesses that regularly transferred money around. Here are some examples:

Petters Co. Inc. (PCI) is purportedly owed money by:

• Central America Holdings in the amount of $16 million (majority owned subsidiary)

• Edge One in the amount of $30 million (100 percent subsidiary in Chapter 11)

• FAC Acquisition in the amount of $20 million (100 percent subsidiary)

• MGC Finance Inc. in the amount of $10 million (100 percent subsidiary in Chapter 11)

• PAC Funding in the amount of $29 million (100 percent subsidiary in Chapter 11)

• PL Ltd. Inc. in the amount of $5 million (100 percent subsidiary in Chapter 11)

• Petters VB in the amount of $10 million (100 percent subsidiary)

• Petters Group Worldwide (PGW) owes $257 million to PCI and is owed $65 million from PCI.

• Petters Capital (100 percent subsidiary of PGW) has cash assets and collectable third-party receivables in the $1 million to $3 million range, is not in bankruptcy, has third-party creditors and owes PCI $110 million and PGW $1.7 million. It is also owed $162 million from Polaroid Corp. pursuant to a secured note, which Petters Capital purportedly assigned to the Ritchie Group as reflected by a financing statement filed Sept. 26, 2008, which the receiver believes is avoidable as a fraudulent transfer. PGW's schedules reflect it owes Petters Capital $258 million. It is also owed about $1 million from Central America Holdings and $700,000 from PGW Holdings (100 percent subsidiary of PGW).

• Polaroid Consumer Electronics (third-tier 100 percent subsidiary of PGW) owes PCI $15.5 million.

• Polaroid Corp. (third-tier 100 percent subsidiary of PGW) owes PCI $27.5 million pursuant to a secured note.

Petters Group Worldwide is purportedly owed money by:

• Central America Holdings in the amount of $55,000.

• Petters Capital in the amount of $1.7 million.

• Petters Real Estate Group in the amount of $95,000 (100 percent subsidiary).

• Polaroid Holding Co. in the amount of $2.8 million (100 percent subsidiary).

• Polaroid Consumer Electronics in the amount of $42,000 (100 percent third-tier subsidiary) Zink Imaging.

• Petters Global Learning in the amount of $167,000 (100 percent subsidiary)

• Trio Marketing in the amount of $222,000 (100 percent subsidiary of Thomas J. Petters).

Source: U.S. Bankruptcy Court filings.
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