Like a bolt out of the blue skies, I received an email that is good news for the investors in the 1031 Tax Group case. I made a mistake and was hasty in reporting that JPS Capital had removed themselves from the 1031 Tax Group settlement. How do I know that I had my facts wrong? The following was sent to me by Mr. Joel Shapiro, principal, of JPS Capital Partners LLC.
Before I continue I must say that I am honored that Mr. Shapiro or anyone of his stature is spending time to read this tiny blog of mine. Back to business, Mr. Shapiro’s comment on my Oct 26 article “1031 Tax Group Reorganization Plans Stymied: West Oaks Mall Files For Bankruptcy Protection Leaving Investors Reeling” is much welcome news for those people who have suffered through this ordeal.
Thank you Mr. Shapiro for stepping to the plate to help these people. Thank you for giving us the correct information and I hope that this information is circulated throughout the investor community. Here is Mr. Shapiro’s correction of my initial impression:
“Having read your October 26, 2007 article on the 1031 Tax Group Reorganization, we want to contact you to correct any misimpression that you have with respect to JPS Capital Partners role in this transaction. We would ask that you update your story to reflect the statement below:
“JPS issued a $300 million Term Sheet to Edward Okun on June 20, 2007 based upon representations made by Mr. Okun as to the value of his assets. After performing due diligence it became apparent that the values represented to JPS could not be verified. Based on the values that we were able to verify, JPS issued a commitment to Okun for $148,625,000 on October 8, 2007. This commitment provided Okun, and by extension the creditors, with $20 million at closing and with the ability to receive up to an additional $125 million over the ensuing 24 months, through profit participation as the assets are liquidated.
This is a plan designed to maximize value for the Estate and its creditors, given the values of the underlying collateral.”
Joel G. Shapiro
JPS Capital Partners LLC
200 West 57 Street
New York NY 10019