FoxBusiness.com published this article on November 20, 2007
In the continuing saga that is the Ed Okun 1031 Tax Group case, I recently received a link to U.S. Trustee Mr. Jerry McHale’s blog-newsletter which contains the most up to date information on the Okun settlement. In the first paragraph of Mr. McHale’s opening salvo, dated November 18, 2007, into the blogisphere, resides the following statement:
“. . . the proposed reorganization plan collapsed when the proposed JPS funding of a subastantial loan to Mr. Okun failed to materialize.”
Finding this interesting to say the least, after JPS Capital Principle Joel Shapiro commented on deansguide to the complete opposite scenario, I once again inquired to Mr. Shapiro as to JPS Capital’s role in the 1031 Tax Group settlement. Mr. Shapiro was kind enough to communicate the following information I will paraphrase.
JPS Capital was unable to provide the originally proposed loan amount of $300 million due to the fact that the “underlying assets” did not support a loan of that amount. Instead JPS Capital, based on the JPS’s underwriting of the underlying capital, was able to provide a $148 million loan to Okun (bankrupt debtor) and the creditor’s committee.
In the most telling statement by Mr. Shapiro, he asserts that JPS Capital sent Mr. McHale a copy of the JPS commitment letter. Consequently JPS is claiming that they have performed in this matter and that Mr. McHale has their commitment letter in hand.
So what is actually transpiring here in this case? Is Mr. McHale’s statement a hasty one or one made by mistake? According to JPS Capital they are funding a loan for $148 miilion to help bail out both Okun and his investor victims. Yet Mr. McHale has the situation going forward without any loan from JPS Capital.
Can anyone straighten this information out for the creditors waiting for any signs of positive news in their ongoing battle to salvage their retirement monies that have gone up in smoke?
Is Mr. McHale out there or anyone connected to him who could enlighten us as to the situation at hand, has a committment letter been received, and has JPS become part of the solution? Stay tuned and hold on.