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MSD
01-28-2008 20:56:11
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Re: Phillips estate auction in Bridgeport, NE in reply to newfarmer9, 01-28-2008 08:07:53
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If you do a court case search and read the whole thing from what went on from the beginning in 1998, you will find that the Phillips sold the salvage parts to a buyer for $525,000. He paid that at closing for the salvage parts only. He also paid $350,000 for the real-estate, $500,000 for good will or blue sky as we call it, and $25,000 for a non compete clause. He paid the $350,000 for the real-estate in cash also at closing. He made the first years payment on the balance of the $500,000 for goodwill plus the $25,000 non compete but during the next year he notified the Phillips that they were in breach of contract because they were not honoring the non compete clause and also the good will clause. It went to court and the buyer lost. He appealed and won. The Phillips went back to court and he again lost. He appealed again and won. From then on it gets muddier. The last time in court he again lost and to appeal he needed to post a $750,000 bond that he couldn't come up with. I didn't quite get that part. He did some maneuvering and sold it to the Bridgeport Tractor Corp. and they filed for bankruptcy. They wanted to stretch the payments out for 20 years. The court said no you can't do that. Also in the original deal, the Phillips had a clause put in that if the buyer sold the real-estate, the remaining note was due at that time so when he sold it to Bridgeport Tractor, they claimed the balance was due plus interest. From what I can read into it, the buyer owns the original salvage parts that he paid for, the real-estate that he paid for, but owes for the good will and non- compete clause that he claims the Phillips didn't honor. The Phillips owned the tractor collection as advertised and any salvage parts they collected after 1998 when this all started.
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