United States of America v. Walden Capital Partners L.P.

Filing 2

CONSENT ORDER of Receivership appointing U.S. Small Business Administration as Receiver for Walden Capital Partners L.P. re 1 Complaint filed by United States of America. Signed by Judge Barbara S. Jones on March 30, 2009, USDC, Southern District of New York, case no. 09-2845. (lw)

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case:gtlEg45fl?$E$Document 03i1 leqj]2 Fired 3 i200elTt)fu 1 T.-*futrp,fX$%tntfil, BE],-r .AM'BELL r.r{ ATTORNEY UNITED STATES (WY9t wILLTAM YOLD,IG 60) lJ.S.Artorney S p e c i aessistant l E; 7"'Floor Essr, 2 7 1Cadman Plaza Itrooklyn, NewYork I1201 ' [ e l e p h o n e : (718) 254-605 7 (AE97I8) A R L E N E EMBREY M. l ' r i a l Afiorney U . S ,SoallBusi ncss Administration 4 0 9ThirdStreer, Floor S.W..Seventh \ V a r h i n g t o n , ?04l6 D.C, T e l e p h o n e , (?02)205-6976 F a c s i m i l e : (202i4S1-01?4 oe T'#rF^fi APR42009 | t N THE Un*ITED STATESDISTRICT COIRT THE SOUTHETI.N F'OR DISTRICTOF ]{EW YORK I ; \ I T E D STATES AMERICA, OT' Flaintiff, v. H"tfffio$t*"oo "* C i v . A r t i o n -U " l L a V u w o. t \ / ) tn | / 1 f 1 4 A ,r1 W A L D E NCAPITAL PARTI{ERS L.P. Dcfcndant, t C O N S I : ] { TORDER this of B e l ' o r e Counis themotion theUnited bv States Amcrica. behalf the on of ("SBA").tbr a prcliminary perrnancnt Administration I , n i t e dStntcs SmallBusiness and tbr of l{eceivel Walden Capital i n j u n c t i o n theappointment theSBAasPermanent and P a r l n c rL P ThisCoun,being s firlly adviscd themerits. on hereby AND DECREES TH{T; O R D E R SADJUDGES . I Pursuanttutheprovisionsofl5C $ 687c Court t,.S this take shall Document 2 Case1:09-cv-02845-BSJ F i l e d03/31/2009 Page2 of 7 jurisdiction Walden ("Walden"). nllof itsassets, excltrsive of Capital PartnersL.F. anci r,,,herever ("SBA"). located, theUnitcd Business and States Small Adrnrfljsrdtron is ("theltecciver") Walden sen,e hereby feceiver appointed of without to bonduntil I'rLrther g, is for o1' o r d e rol'thisCoun. TheRcceiver appointed thc puroose adrninirterin m a r s h a l l i nand, neccssary, g if liquidating of Waldcn's all to nssets .ratisfy claifis of the in by c r e d i t o rthercfrom thc orderofpriorityasdetemtined thisCourt s ?. authorities. andpriviteges TheRcceiver have powers. shall rights all rflf,flagcrs, of h e r c l o f o rpossessed thegeneral e Dartners, oUiccrs, directors Waldcn and b}' )aw Pannership and under applicabie andfederal andby theClenificale l-irnited statc in to uponthe A u r e e m c n t saidpartnership,addition atl powers authorit.v and con(ened of panncrs. ol'l5 R e c e i v e r rhcprovisions U,S,C, (r87c ?8 U S,C. 754. Ihe general by and $ $ of dismissed. Suclt arc m a n a g e rdirectors. s. officers, and empJoyees agents Waldcrt hcrchy as except or persons $.ith iespect Waltlcn's to opcrations assets, shalthavcno authority and granted theReceiver, bv TheReceiver assunte shall he m a yhereatler expressly pursue preser,"c of its claims. all ofWalden shall and and c o n t r otheoperation l i general managers. Thepaslartdlot present agents. ditectors. offrccts. in as actini.l partners. of\\'alden. wellasall those artorreys emp1o1'ees accounranrs, and fonhrvith booksto all are and t h e i rplace, herebl, ordctcd directed tum overto theRecejver and and and of r e c o r d sdocuments. . acconnts all otherinstruments papErs saidpartnership r'rpon of whether or personal receipt real asscts property ofthe pannership. a l l other and production. \\aldenshall of regarding timeandplace sr'tch i n s t r u c t i o n s theReceiver the by within listingthe f u r n i s h rvritten staremenT flve(5) days a al\ertheeatry thi$Order. of value all assers as i d e n t i r ylocation estimeted . afld of ofWalden rvellaslhenarnes, 2 Case1:09-cv-02845-BSJ Document F i l e d03/31/2009 Paoe3 of 7 a d d r e s s c s anounts ofclainrs and ha"ing ofall tmorlncreditors olWalden.A1lpcrsons c o n t r o lcustody possessionanyassets propefiy . or or Waldcn of ol'Walden. including s panner formcr f o r m e general r and lhanagemcnt are compirfiy, hereby to directed trrmsuch p r o p e r t overIo thc Rccciver. y 4 gir,e TheReceiver promptll' noticc itsappointment atlknorvn to shnll of g e n e r B l limitcdparlncr$, and oflcers,directors, manegers, agenrs. shnreholders. cnrplovecs. crcditors. or dcbtors agents and and an1, of\\/alden All persons entities orving obli-qations pay such to d e b t s Walden untillurther ordered rhisCoun, a)1 shall. by obligations in pa_v-ments rhereofto Receivcr, itsrcccipr such lbr rvith and shall a c c o r d a n c e theterms the forocandcffcctasif Waldcn received pavments. had h a v e samc tho such 5. st TheReceiver herebl' authorizcd open is such Receiver's accounts. to bank inslitutions, extend or to credit behaliof to SBA b a n k i n g otherfinancial on Walden, rrtilize p e r s o n n e l , to employ such to oland as the othcrpersonnel necessarye1l'ecluate operation but and including, noi lirnited atlorneys accountants. i!ifunhcf to. and t h ereceivership and in such receivership to compensate persodneL funds such arnounts 4 u l h 6 r i z eto expend d deem rcaronablc lightoftheusual feesandbi)ling u p o nsuch shall in rcrms thcRcccivcr as (lor.rn is personncl Receir'cr notrequired obtain Thc to p r a c t i c eandproccdures such s of priorto thedisbursementreceivership t'orpfl)'lyrcnlspcrsonnel funds to of approval for incidental adminiitration thc bv of r m p i o y e d ihe Receilrror pa.r..fients erpenses 10 is R e c c i v e r s h rIn additiorl, Receiver authorized reinrbursc StsAor its p the to tlte for b1, personnel theestablishment add expeflses incurred SEIA ifl e r n p l o y e e s travel lna\r, order a d m i n i s t r a t i o n receivership Redeiver wirhout The frrrther ofthe ofthis Coun, or oiany claimor asser, than estare, real t r a n s f e compromis$, othcrwise r, dispose other Document Case1:09-cv-02845-BSJ 2 4 F i l e d03i31/2009 Page of 7 w h i c h would rcsultin nel proceeds the Receiver. to {r Waldcn'spastand/orprcscnt of}Icers, Rrqents. mana,qers, ucneral direcrors, (inclr.rding, p a r t n e r sshareholders, , persons uitlrout employees. otherappropriate and portfoliocl'srnallbusiness concerlsantlbanksor otherfinaflcial l i m i t a t i o n ,the defendanls u'ith defendant andror portlblioof smaLl business institutions defendant's doingbusiness which it may pr.rt tlrembv thc Receivcr to c o n c e r n sshallans'"vel ) undcroath a)l quesrions r e g a r d i n g business partnership, any olhertna er relevant lhc operalloll or or the o{'sard Io o a d m i n i s t r a t i o nt h e r e c e i v e r s h op t h ec o l l c c t i o n f f u n d sd u et o W a l d e n .I n t h e e v e n t ir of irc entioned t h a tthe Recciveldeem it necessary requ rhe appearance tlrealbrem s ol' to p e r s o n stlteprodrlction documents, , information.or anv olhcr fbrm of disccvery ol relevanlto properry business othermatter the or c o n c e r n i n g assets. assets Waldenor anJi of of ofthe Receivership the collection funrisdr.rc or to t h e operalion adnrinistration or w a l d e n , the Receivershall direct notice for anv suchappearance certi{ied mail, tutd sard by produce persons or shallappcar andgive answerto the Rcceiver, <locuments submitto nni' with the Federal Rulcsof Cir.il Fnrcedurc. o t h c rform ofdiscoveryin accordance 7, "l'he parties any and all ci'"il iegalproceedings parties pfospective to or procccdings, bankruptcr' ot including. not lirnitedto arbitration r v h e r e v elocated, r but involvingWaldenor an1, I ' o r e c l o s u ractions, e defaullproceedings, any othcrprocccdings or partflers or or managcrs, general a s s e t s Walden,or its present pastofficers.ditectors. or of rvith, for. or tn connection t h e Receivrr,which panieshavc suedor havebeensuedfor sued panners while acting rhanagets. genetal otficets,directors. or a f l ) ,actiontakenby Waldcn's i n suchcapacitywhcther as plainritT,drfcndant,lhird-par plainlifl', rhird-panv tlefendanr. uor o r otherwise. with respect aav assets to oflvalden, areenjrrincd from takinganv action. Case1;09-cv-02845-BSJ Document 2 Filed 03/31/2009 Page5 of 7 i n c l u d i n gdiscovery. commmcingor continuing legalproceeding any nature in anv of rvithany proceeding. connection 8. All pcndingcivilicgal proceedings wherever located. induding arbrtration proceedings, foreclosure acriviries, bankruptclor acrions, dcfaulrproceedings, but e x c i u d i n g instartproceeding, the involvingWaldenor an;' ofits assets any aclionol any or present pastofficers, nature takenb! Walden's or directors, nldnagcrs, gcnetalparrners, or r v h i c hpanieshavesucdor havebecnsucdfor, or in connection u,ith,any actiontakenbv t h e m while actingin their ofriclalcapacity whnher asplaintiff,defcndantthird-pafty p l a i n t i f l ,third-pa(y defendaflr. othenvise, stayed their enriren.and al! Couns in or afe h a v i n g anv jurisdiotiotl rhcrcof are cnjoincdfrom raking oi permittilg any hrtion ufllil f u r t h e rOrderot'this[]oun. 9 As to a cause of'actionaccrued nccruing lar,o:'ofWaldcn againsta in or t h i r d personor pan\'. an\ applicable ollimitation is tolled duringrhe periodin statute r v h i c hthe inlunctronagainst commencemenl described paragraph oflegal proccedings in 7 , above.is in cffect. i0. Waldenandits pastand/orpresenf general panncts, directors. managers, offrccrs. and acti$g rfl concenor paflicipariontherewirhbe. and a g e n t s ,empLoyees otlrerper$dhs from eitherdirectlyor indirecrly t h e l herebl, arc.enjoined takingan1, or actions cflu$in:l a n y suchnclionto be 1aken whrchwould dissipate assets propeftyof Walddnto rhe and rhe in appointcd this cause, brrr including not iimitedto destruction d c t r i f i e n tofthe Receiver records. rvhichwouldviolatethe $mall Eusiness Acl or Inr.estment of I 958. of'pannership ( , " S B I A " ) . l 5 L , , S S e c t i o 6 6 1e t s e q .o r r h er c g u l a t i o D s o m u l g a t e d pr C n a s a m e n d e dt h e , ) t l r c r e u n d e(rt,h e" R e g u l a t i o n s " 3, C F . R { 1 0 7 , 1 l $ q l e 2 Document Case1:09-cv-02845-BSJ 03i31/2009 Page6 of 7 Filed 11 of from tohorrow behalf rValden. theSBA' on The Recci'cr authorized is of Waldento issueReceivelsCcnillcatcs lo and u D10$ | .000,000, is authorized cause rvili rvhichcertilicates bear oflthesumsbonorved, in I n d e b r e d n e s s the pincipal amounts ren i n t e r e sat or ab()ut ( l0) percenlper annumandwill havca mitturiti'dateno laterLhan r shall of I g moflthsafterrhe dateof issue. said Reccivclstlenificatcs Indebtedness havc cxpcnse:i administrattr,e o[walden, excluding n r i o r i t yover all othe| debtsandobligations inctrrted, includingrvithorrt or existing hereinafter whethcrpresently n f the Receivership, in of I i m i t a t i o nany clarrns equityhoiders Walden l?,'l'hisCorrndeterminesandadjudicates',hatWaldenhasviolatedthecapital in as ofthe sBIA andthe Regulations, a)legcd the conrplaintfilcd provisions impainnent rvith in its i n this matter.After completing activities accordance tlrisordcr. the Receiver that to f l a v submita reFJort rhis court reconmending walden's licenseas an sBIC hc revol(ed 2 Case 1:09-cv-02845-BSJ Document 03/31/2009 Page7 of 7 Filed A G R E E I } ACH}{ONLEDCED: ATiD ERSI,.P. W A I , D E I \ iCAPITAL PAR'I'I{ Ilv: p r i n t e d a m e, \ , \ ' t . - ' n : lts l: '. -rt; '- i:ffil Fffi:ilxtr fiiltr*Ji :[ tiltn t h i s_l '_ davof - -r- 2008. I ADMIn*IS'IRATION U.S. SMALL BUSINESS ' .l+!::_ 1-!:)_:1_::-' -!-'-7 Ilircctor T h o m a G. Morris, s of Lirtrridation S B AOllice SBIC rT t h i s\r rT dar.ol. - \.r' 2008. ..r - -f. -!/ r. t\: ttris $ oORDERED rlk-qd-,z,to? I i ] T f D STATIS DISTRICTJL

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