United States of America v. Hispania Private Equity
COPY OF ORDER from USDC-Northern District of Illinois appointing the Small Business Administration as receiver of Hispania Private Equity, L.P. (TCL )
Case: 1:12-cv-09232 Document #: 4 Filed: 11/30/12 Page 1 of 6 PagelD #:14
IN THE UN1TIm STATES DISTRICf COURT
fOa THE NORTHERN DISTRlCf OJ'ILLINOIS
. EASTERN DMSION
UNTrED STATES OP AMI.RlCA,
BISPANIA PRWATE BQUITY, L.P.
Clv.AeIIoa No.1: 12-CV-09232
jurisdiction ofHispaaia Priwto Equity, LP. ("Hispaaia"), aDd all onts us_aDd property, of
whatever kind mi wherever locatlld, IDd th"Uaited States Small BusiDcsI Adm.Inistmtion
(MSBA") is hereby appointed Receiver ("the Racleiver") ofHispaoia to serve without bond until
fi.uthcr order of this COUIt. The R.eccmrer is appointed.1br the pmpDM of mmhalinllDd
liquidating all ofHispania·..... and satisfying the claimlll of cndtors therefiom i-n the cmIer of
priority as dctenniDld by this Court.
The Receiver shaD. have all powers. authorities, rlpts mel prlviIeps ben=tofare
possessed 'by the diNCtors, IDIIIIpIS and JIIlCI81 and limited partnen of HiaplDia UDder
applicable state and federal Jaw, by the Arlicles ofLimitad Partnenhip, and By-Laws ofsaid
limited putDenbip, in addition to all powers IDd authority of a reca~ at equity, IIDIl all powers
and authority oonfemd upon the Receiver by the provisions of 15 U.S.e. § (; 87c and 28 U.S.C. i
754. The ~ dUecton, manaps, employees, iuvestmeDt advisors, au::countant8, I1tomeyI
Pursuant to the provisicma 15 U.S.C. 16870, this Com hereby takes ex.clusive
-., v> ....
IT IS BBREBY ORDERED, ADJUDGED AND DICR.DD:
Case: 1:12-cv-09232 Document #: 4 Filed: 11/30/12 Page 2 of 6 PagelD #:15 .
and other age:ats ofltispania am hereby dsmi.1ICd and the puwen of any ~ partners are
hereby smpended. Sud! pcnoDI8I1d mIi1l.1IhaIl have no IIII1hority widl respect to HispaDiats
operations or usets, except to the meat. may hereafter be expressly granted by the Receiver.
The Receiver shall asswno aDd control the operation ofHispania aDd &hall put'8UO .md ptelC'tVe
all ofi.. claims.
The Receiver it mtf.tled to take immediate possession of all asets, blDk aoooaats
or other financial accounts, books aDd !'&'lOI'ds . . all other documents or instrumODtl relating to
Hispania. The past anNor prescot oftiCIII, directors.
aaems. DlllD8lal. pill_lad limited
parbHn, t:rc:I8toc8, a~ IICCIOUDtIIIts, IDd CIIIployees ofHisplDia. as weU 81 aU thote actina
in their place. are baby onlcnd -.I directed to tum over to the Receiver fortbwidl all books,
records. documentl. ICCOUDIB and all 0 _ iDstrumeats IIId papers of and telatiq to Hispania
aod all ofHispaia·. assets ad all OIherllletsand property oftbe limited pll.l'blerSbip, whether
real or pcncmal. The aenaII parbler ofHispDia shaD furnish a writllm statemeDl within fiw (5)
days after the entry of this Order, liatiag tbD ideatlty. location and estimatad value of aU useta of
H'18pU1ia, a list of aU employees (and job titloa thcnot). other pcnonocl. attomeys. accountants
and any other apats or con1raCtors ofHIspaaia, as wei) as the names, addresses IDd 8IDOUD.ta of
claims ofall known creditors ofHispaniL W'l1hin thirty (30) days fOUowiq the eatry of this
Order, the pncnI partDer of Hispania IbaU also furnish • wriltcll report describin,g all auets. AU
pasoI1Iand eotiti- haviDs CO.DtIol. euslOdy orpossesaton of any use1I or property ofHispBDia
BIt bereby directed to tum such .... ami property over to the Rcceiva'.
The Receiver sba1l promptly giw no1ice ofits appointmmt to aD Jmown officers,
directors, ageaI8, employees, shareboldas, creditors, debtors, maaagcn and paend and limited
partners of Hfap_1I, • the Receiver deems ~ or advisable 10 etr.ctuate the operation of
Case: 1:12-cv-09232 Document #: 4 Filed: 11/30/12 Page 3 of 6 PagelD #:16
the 11IC8ivcnhip. All pcr80III and entities owq any obligatiOn, debt, or distribution with I'I8pKt
to a puiDenblp intaIest to Hiapania aball, WltiI fbrther ordesed by this ~ pay allsucla
obligatious in accordance with the terms thereof to the Jb:ceivar IDd its receipt for such
paymcats shall have the I8IDI force and effect as ifHilplDia but n:ceival such paymeats.
The Receiver il hereby a1Jthorized to open . d Recei:ver's 8CCOUDII at bllnkina or
other fiDanoial iDstitutions to ex.taDd credit on beIIalf ofHispimia. to utilize SBA pllrlODDBl. 8Dd
to employ such other perIODII.Claa it may deem aecesa.ry to effectuate the operatlOll ofthD
receiwnhip indudiD& but DOt limited to, attomeys, IlCOOI.1IlIImtI CODIUItants and apanisll'l, and
is further authorized to expcm.d JeCeivership fimds to CXHDpenslte auch peraoDDd in sucb lIDlOuats
and upoa such terms 81 the Receiver shall deem reuoaable in light of the UIII81 feas and billiDg
pmeticcs aDd pnx:eduree of such penoaad. The'Receiwr il DOl nquired. to obtain Court
prior to the dilburaemeat ofn=ceivenhip fuDds for paymmts to pet'IOIUI.el employed by
the R.ecoiver or for 8XpeIIIeI that the R.eceivcIr deems adwnfa8cous to the onJerly acImi1listration
and operation oltho rccei.vcnbip. In addition, the R.cccivcr is aufOOrizcd to reimburse the SBA
for travel expeIlICJI iDcurrecI by SBA personnel ill the establishmaat and administration of the
receivet'lhip. The R.ecciver IDlY, wtthout tbrther order ofthil Court, tnmsfer, c:ompromiae, or
otherwise dispoae of any olaim or uset in the ordinary COW'le ofbusiDess, other than real estate.
Hilplaiat. pIIt lIDdIor presc:at ofticcn_ directors, apnts, attomcys. managers,
shareholders, . .ployees, 8COOUI1taah, debfon, creditors, IIlIJlIFI and .-raJ and limited
partaen ofHispania, and other appropriate penon. or entities (includina without limitation. the
defeDdant'a portfolio of small busil1elS CODcems and tinaDcial inslitutiarJs doiDs busiDlss with
defendant mdlor dcfeadanr. poItfoJio of small bulUxaS concc:ms) IhaD answer 'UDder oath II) the
Receiver all questiODl whieh the Reeeiver may put to tban and produce any documents as
Case: 1:12-cv-09232 Document #: 4 Filed: 11/30/12 Page 4 of 6 PagelD #:17
required by the Receiwer reprding.tbo business of saki limited partnership, or any other matter
relevant to the opcratioa or ~1trati0D oftbe ftlCeivenbip or the collection offonds due to
Hi:sp1lliB. In the evea.t that the Receiver deems it necessuy to nq1.lire tho IppOaiIllCe of.,
aforaDentioDed pc:noa or entities, the Receiver shall mllke its dlscowry request(8) in
accordance with the Ycd«aI Rules of CiW Pmcedme.
The parti. or prospective parties to any and all civil Jepl JmlC«Idings wherever
located, iDcludin& but DOt Iimit:ed to arbitJllion ~np, bakruptcy or roftdosure actiom,
default pocecdimp. or my otberpmc-tin,p involving (i) Hispenia eii} lIllY ..... of Hispania.
(till the Receiver for HiSlNlDiat and (iv) Hispania'i presert or past direcCora, paeraI . . . . . or
tDIU1IpI'I, to the -.teat Slid Civillepl prq,adinp inYOlw ..yaction taken bythcIID wlWe actiDa
in thdr official capacity for HiapaDia, lie CDjoinacl mm takiDa any actioD.lDcluding discoYery.
commeociag or continuiDa any lepl proceeding of my nature without iUrther order oftbis Qna.t.
All civil iep1 proceediD.&l wherever located, includin.g arbitration proc_finas.
fiwealo!um activities, bID1auptcy actiolll, or ddwttpmceediaas, but exdudina the inataat
proceedin&. iDvolYing (i) Hispania, (ii) any of asset. ofHispania, (iii) the Receiva- fOr Hispania or
(iv) Hispania's plWIIeBt or put geaeral pII'tnerI, directDra, or m-.n to the _teat said civillepl
~inp involve any action talc. in their otJ:iciaI c:apacity i:Jr Hilpania, . . stayed in their
ea.tireIy, and all Courts having any jurildictioa thereofare cmjoiDaJ from. ta1dD& or I*mittina any
action in such proceediDP lDltil tiutber OMer ofthia Court.
Further. as to a ~eof.::tion41ocrued or8CCl'UingiD fa\1lrofHiaplmiaqaiDst a
third peEBOI1 or pady.IIlY applicable lltatute oflimitatloa is tolled du.riq the period. in which this
injunction apiDst COIDD1CDC8IDCIDt of 1epl proceedinp is in effect as to that CllD8e of action.
Case: 1:12-cv-09232 Document #: 4 Filed: 11/30/12 Page 5 of 6 PagelD #:18
Hispania and its put lDdIor pamt directors. officers, managers. pneraI or
limi~ partners, agents. employees and other periODS 01 CDtities actina in c:onQiIt or participatinl
therewitb be, aad they bercby are, cqjoinod &om either diRlcdy or iDdirectly takinllDf ICtioas
or causing any such action to be faten wbich woald dissipate the. . . and/or property of
Hispania to the detriment ofHiJplDia CII' ofthc Rec:eiver appoinkd in this awse. ind.udina but
not limited to destnacdon of COIpCX1de records, or wmch would lIiolate the Small Bus:incu
InWlStmcnt Act of 1958, • amended., IS U.S.C. 661 !It.BIu or th, replations promulptcd
thctcuDder, (uR.eplatioDa"), 13 C.F.R.II07.1 sLlS.
The Receiver is authorized to bOIrow CD behalf ofHispania, from the SDA, up to
$1,000,000 and is authorized to CIU80 Hjspania to issue RDceiv.rJ Certificat.s of~ in
the principal amounts ofthe sums borrowed, which ccrtificata will bell'intensl at or about 10
pcm:ent per aamum and will bave a maturity date no ..tar thaD 18 months aftao the ~ of i.asuc.
Said Receivezois pmficates of IDdebtednesllhaIl have priority O'WJl' all other debts and
obligations of Hispania, _eluding administralivo GpCDSOS of the R.ecei'Wl'ibip, whllh.e.r
cmrently cxiatiq CI' herehder incurrccl, indudina without limitation any claims of lIIDenaI 01'
limited partners ofHiIPlUlia.
Tbis Court deCermines and adjudicata that SRA hu made I sufBcieDI: showing
that Hispania has violated the Act aDd the Regulations, as alleged in the Complaint tiled qaiDIt
Hispmia in the instaJa action. to obtain bs relief SO mqUOIIDd.
a~ of A4rc..4c.~ ., 201
DATED this 3fJ
UNITBD STATES DISTRlCI' COURT JUDGE
Case: 1:12-cv-09232 Document #: 4 Filed: 11/30/12 Page 6 of 6 PagelD #:19
HISPANIA PRlVATB BQUrrY, LP.
By. Hitpaaia lIMIt.,.
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