A tipster (send in your tips here) sent in a copy of a recent court filing in Texas in the mosh pit of lawsuits between Lloyd Regner v. David Glenwinkel and Nisco Enterprises and Kevin Devoto v. Lloyd Regner, ABC Administrative Services, ABC Debt Relief, The Debt Answer, and Stephanie Cherwin.
According to the court documents, Devoto, Regner’s former partner in these enterprises, requested that a receiver be appointed to take over the companies. No decision has been made in that request.
However, consumers should be aware of a couple of statements/allegations contained in the documents, “The condition of the Companies has since deteriorated. On September 13, 2012, the Companies’ lawyer sent the Plaintiffs’ attorney a letter, a true and correct copy of which is attached hereto as Exhibit A, giving notice that Lloyd Regner was again loaning the Companies money in order to make payroll.
Based on this most recent development, it is clear that the Companies cannot continue as viable entities. Accordingly, Plaintiffs renew their request that a receiver be immediately appointed to rehabilitate and/or liquidate the Companies.” – Source
While the letter attached as an exhibit does not expressly say the loan will be used for payroll, it does say, “In order to fund continued operations of the Borrowing Entities, it has become necessary for Regner to enter into a short-term, first lien secured, revolving credit loan with the Borrowing Entities.” The Borrowing Entities in this case are ABC Administrative Services, LRKD Auto, The Debt Answer, ABC Debt Relief, CRLK, and Lone Star Management and Development.
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Steve,
Do you have any updates?
The only update I have is a pure rumor and I have no confirmation of it at all. There is an important court appearance this friday so maybe more to come.
Here is the latest. The court ordered an auditor to examine the books as part of the lawsuit between Devoto and Regner that involves The Debt Answer and ABC Debt Relief.
IT IS FURTHER ORDERED that the Auditor shall examine and inspect the books and records of the Companies for the five months preceding the date Of this Order, and shall prepare a report describing the financial condition of the Companies (the “Report”) and deliver the Report to Defendants Nisco Enterprises and Kevin Devoto. on the one
hand, and Plaintiff Lloyd Regner: on the other hand (collectively, the “Delivery Parties”).
The Report shall contain recommendations to the Delivery Parties concerning the viability of the Companies as ongoing concerns and recommendations to the Delivery Parties regarding ways to make financial results more profitable.