HomeMy WebLinkAboutResolution #2042RESOLUTION NO. ~n42
A RESOLUTION CONDITIONALLY APPROVING THE CONCEPT OF A PRIVATE
SALE AND TRANSFER OF ALL CIC STOCK ALLEGEDLY OWNED BY ELIZABETH
A. FOLEY.
WHEREAS, pursuant to a certain Pledge Agreement affecting
all Canton Industrial Corporation (CIC) stock owned by Elizabeth
A. Foley, the City of Canton (the City) has filed an action for
specific performance seeking the formal transfer of all such
stock into the name of the City; and,
WHEREAS, the City has been made aware that there are or may
be several private entities interested in acquiring ownership of
such stock; and,
WHEREAS, such private acquisition of said stock coupled with
an out-of-court settlement of pending litigation and the filing
of a formal reorganization plan in bankruptcy court acceptable to
the City is or may be in the best interest of the City.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF CANTON, Fulton County, Illinois, as follows:
1. That the Canton City Council hereby finds the foregoing
recitals to be fact.
2. That the Canton City Council hereby conditionally
approves the concept of a private sale-purchase of all CIC stock
alleged to be owned by Elizabeth A. Foley.
3. That any such sale-transfer is contingent upon:
a. The purchaser of such stock prior to any such
acquisition filing a formal, written reorganization plan with the
U.S. Bankruptcy Court, Central District of Illinois, in Case No.
88-80374;
b. That, after reasonable investigation and
deliberation, the Canton City Council exclusively and
unilaterally determine that such plan is acceptable to the Canton
City Council and is in the best interest of the City of Canton;
c. That the aggregate of all consideration, of
whatsoever nature or description, to be paid to or on behalf of
Elizabeth A. Foley in exchange for all shares of stock alledgedly
owned by her be nominal and not exceed in the aggregate a value
in excess of $10,000.00.
d. That all shares of such stock, upon transfer, be
and remain subject to the terms and conditions of the "Pledge
Agreement" now affecting such stock.
4. That the City reserves the right to commence and
prosecute actions of every nature and description in any way
related to the City's prior and present involvement with CIC and
with the present and former officers and officials thereof. That
this Resolution is not intended to be and shall never be
construed to be a waiver of any cause of action which the City
has, or, may claim to have by reason of such association.
5. That this Resolution shall be in full force and effect
immediately upon its passage by the City Council of the City of
Canton, Fulton County, Illinois, and approval by the Mayor
thereof.
PASSED by the City Council of the City of Canton, Fulton
County, Illinois at a special meeting this 13th day of September,
1988 upon a roll call vote as follows:
AYES: Aldermen Kovachevich, Steck, Meade, Bohler, May,
Chapman, (Alderman Sarff excused from voting)
NAYS: Alderman Zilly,
ABSENT: None,
APPROVED;
Donald E. Edwards, Mayor
ATTEST:
a
Nan Whi s, City Clerk