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Bankruptcy filing says Pigeon King owed $23 million

From the bankruptcy filings of Pigeon King:

"The breeder contracts appeared to be that of an investor nature.

The debt declared by the Officer of Pigeon King International Inc. for the bankruptcy documents was the original purchase amount by breeders less any amounts paid to the breeder for the buy back of young birds.

The Trustee will be reviewing all claims submitted for amounts owed to determine if the balance is in fact a debt of Pigeon King International Inc. or the balance of an investment account."

This means two things:

1. The amount Galbraith took in through PKI is more than $20 million he says he owes to the breeders because many of the breeders show a zero balance - meaning that they have been paid off completely.

2. The trustee is about to disallow most of the breeders claims as not debts of PKI, but rather as investments in PKI. Oops, no debt, no vote at the creditor's meeting.

Hope somebody is watching this.

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Full post as published by Misleading Advertising Law on July 10, 2008 (boomark / email).