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Published on 9/19/2006 in the Prospect News Distressed Debt Daily.

Tanner & Haley creditors request examination of McGrath, licensing company

By Caroline Salls

Pittsburgh, Sept. 19 - Tanner & Haley Resorts' official committee of unsecured creditors requested an examination of former president and chief executive officer Robert L. McGrath and Abercrombie & Kent, with which the company holds a licensing agreement, in connection with marketing the company's assets.

The examination motions were filed Monday with the U.S. Bankruptcy Court for the District of Connecticut.

From McGrath, the committee is seeking information on the sale of company assets; the management and operation of the company; contracts, including contracts with vendors and service providers; any income, bonuses, compensation or transfer; any accounts into which assets were deposited; efforts to obtain financing or credit; lawsuits; and the use of any company funds, assets or property for purposes other than for the benefit of the debtors.

From Abercrombie & Kent, the committee is seeking information on contracts between Abercrombie & Kent and Tanner & Haley; efforts, participation, oversight, or approval by Abercrombie & Kent relating to the marketing of Tanner & Haley's business, products, services or memberships; management, operation, financing or marketing of any Tanner & Haley debtors; information on payments, commissions, transfers or consideration of any kind received or claimed by Abercrombie & Kent; and all communications and settlements between Abercrombie & Kent and Tanner & Haley.

Tanner & Haley, based in Westport, Conn., is a hospitality and real estate company. It filed for Chapter 11 on July 23. Its case number is 06-50245.


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