Partner Relinquishes Control of SunCruz.

Search

"The Real Original Rx. Borat"
Joined
Sep 21, 2004
Messages
2,882
Tokens
A powerful Washington lobbyist has given up his rights in SunCruz Casinos to the estate of slain businessman Gus Boulis, returning control of Florida’s largest cruise-to-nowhere empire to Boulis’ representatives.
14-1499-1.jpg


Jack Abramoff, a longtime conservative activist who has become a formidable Capitol Hill lobbyist, gave up his 35 percent voting rights to the Boulis camp shortly after the company filed for bankruptcy Friday, Abramoff’s SunCruz partner said Sunday.

Adam Kidan, managing partner of Dania Beach-based SunCruz, said Abramoff called him Friday evening to tell him he had made a deal with the Boulis estate.

Abramoff’s action should free him from the onslaught of lawsuits brought by the Boulis estate following the $147 million sale of SunCruz last year. SunCruz, under Kidan’s management, was seeking protection from at least eight lawsuits while it reorganized and refinanced under Chapter 11 bankruptcy.

Boulis’ company, Shake Consulting, now controls 55 percent of the company and may be able to take over the reorganization. SunCruz will continue to operate during the restructuring.

Abramoff, reached Sunday, referred questions to his publicist, who could not be reached.

It is not yet clear whether the Boulis estate, controlled by five of his former associates, has the power to remove Kidan outright. Kidan, with a 35 percent share of the company, said he cannot be removed by anybody but himself under the company’s partnership agreement. That assertion will almost surely be tested in bankruptcy court.

“This is just going to continue the rancorous fighting,” Kidan said.

Stephen Stallings, an attorney for the Boulis estate, would not comment Sunday.

SunCruz has been struggling under the weight of at least eight lawsuits, which began within three months of the sale, but whose allegations have grown increasingly harsh and personal, since Boulis was murdered Feb. 6 in Fort Lauderdale.

The lawsuits centered on the failure of partners Kidan, Abramoff and Ben Waldman to pay off $67.5 million in financing to Boulis. The partners, who contributed none of their own money to the deal, claimed Boulis had defrauded them on several fronts.

At the time of the bankruptcy filing Friday in Miami, SunCruz was in danger of losing its dock space at its most profitable location in Port Canaveral. On June 15, a federal magistrate found that the new owners never paid Boulis for the company and recommended that they be forced to stop using the SunCruz name. Company officials feared that creditors would seize the company’s 11 ships under a provision of maritime law.

In addition, the Boulis estate embarrassed Kidan by revealing his association with Anthony Moscatiello, a caterer who is a childhood friend of former Gambino crime family boss John Gotti and his brother, Gene. Moscatiello was indicted with Gene Gotti in 1983 and accused of aiding a fugitive drug dealer. Charges against Moscatiello were later dropped.

Kidan admitted that he paid $30,000 to Moscatiello’s daughter in December and January. Kidan said Moscatiello, whom Kidan has known for 10 years, was helping out as a food and beverage consultant, and that he made the checks out to Jennifer Moscatiello at her father’s request.

Abramoff was scheduled to be deposed in July in connection with the lawsuits. Abramoff, a lobbyist with the Greenberg Traurig law firm in Washington, commands lobbying business of up to $8 million annually, according to published reports. He is closely allied with House Majority Whip Tom DeLay, R-Texas.

The bankruptcy action protects the company from the lawsuits while the court sorts out the Chapter 11 reorganization plan. SunCruz is expected to file documents in federal bankruptcy court in Fort Lauderdale today to begin the reorganization.

Kidan said he was also offered a deal by Boulis’ estate, but turned it down because “it left the company in jeopardy.” Kidan said he will be forced to declare personal bankruptcy this week. It will become the second time in five years that Kidan declared personal bankruptcy under a Chapter 11. In 1996, he filed a bankruptcy along with Dial-A-Mattress. That reorganization paid all creditors in full, according to financial documents obtained by the Sun-Sentinel.

Kidan said he gave Abramoff until Friday afternoon to reach a settlement. The settlement gives up most of Abramoff’s ownership interest under any bankruptcy plan and all of his voting rights, Kidan said.

[This message was edited by Borat Sagdiyev on March 23, 2004 at 01:13 AM.]
 

"The Real Original Rx. Borat"
Joined
Sep 21, 2004
Messages
2,882
Tokens
Thank you Fishhead for being such an active moderator with quick response time. Thank you also for being so calm and cool despite the pressure and various criticisms you encounter here. You are a genuinely nice guy.
 

Forum statistics

Threads
1,106,768
Messages
13,438,832
Members
99,338
Latest member
chaicoca816
The RX is the sports betting industry's leading information portal for bonuses, picks, and sportsbook reviews. Find the best deals offered by a sportsbook in your state and browse our free picks section.FacebookTwitterInstagramContact Usforum@therx.com