Feb 2005, Irish High Court bars Kachkar and Carrigan from investment and directorship positions in Ireland. (source: Carrigan testimony doc 191)
March 31, 2005, Inyx and its wholly-owned subsidiary, Inyx USA Ltd. (“Inyx USA”), entered into a Loan and Security Agreement (as amended, the “USA Loan Agreement”) (attached Exhibit 1) with Westernbank. Fraud guarantees signed by "Inyx Operators" (source: RICO complaint)
May, 2005, Inyx Pharma Ltd. (“Inyx Pharma”), which is also a wholly owned subsidiary of Inyx, signed an amendment to the USA Loan Agreement (attached Exhibit 2), and became a co-borrower under that Agreement. Inyx, Inyx Pharma and Inyx USA are referred to hereinafter as the “USA Borrowers.” loan $46M ($10M revolving and $36M in 4 term loans) secured by all assets (source: RICO complaint).
July 2005 Jose Biaggi appointed CEO and President of Westernbank.
August 30, 2005, Kachkar, Green and Goldshmidt each executed similar guarantees covering fraud, deceit or criminal acts by Inyx, the EU Borrowers, or any officer, employee or agent of Inyx or the EU Borrowers. (source: RICO complaint).
On August 31, 2005, Inyx Europe Limited (“Inyx EU”) and Ashton Pharmaceuticals Limited, f/k/a Celltech Manufacturing Services Limited (“Ashton”), entered into a Loan and Security Agreement (as amended, the “EU Loan Agreement”) with Westernbank (attached Exhibit 9). Inyx EU and Ashton are referred to hereinafter as the “EU Borrowers.” Under the EU Loan Agreement, Westernbank agreed to lend up to $35.5 million, consisting of a revolving credit line of up to $11.7 million and term loans to Inyx EU in the aggregate amount of $24.8 million, pursuant to four promissory notes. Loans are now about $82M (source: RICO complaint also Montanez testimony).
October 24, 2005, Inyx sought and received a $5 million Secured Over Formula Advance Loan from WBC for working capital to purchase new inventory. The loan was to be guaranteed by inventory one of the Inyx Companies was to purchase pursuant to existing purchase orders. The Inyx Companies, however, never reported such inventory to WBC, and the underlying purchase orders were fraudulent. In addition, while the loan has long since been due and owing, the loan has never been repaid. Loans now $87M (source: RICO complaint).
Nov 2005, Another $10M in loans for revolver at Inyx Pharama Loans now $97.5M (source: Montanez).
On or about August 1, 2006, a conference call was conducted among Westernbank employees and Handley and Hunter. During this call, Handley and/or Hunter falsely represented to Westernbank that most of the Inyx past due accounts receivable discussed on the call would be collected over the coming months even though they knew that most of these
accounts receivable were fraudulent. This conference call took place over international wires (source: RICO complaint).
On or about August 11, 2006, Kachkar, Green, Goldshmidt and other Inyx Companies employees traveled to Puerto Rico to meet in person with Westernbank employees. Among the topics discussed were Inyx’s aging accounts receivable. Kachkar, Green and/or Goldshmidt told the Westernbank employees that they should direct their questions to Handley
and Hunter because they were the ones knowledgeable about the accounts receivable (source: RICO complaint).
Sep 2006, Loans are up to $110M. Accounts receivables increasing, need more working capital. Added to revolver (source: Montanez).
Starting in September 2006 and continuing through at least May 2007, the Inyx Operators repeatedly, misled Westernbank by advising it that the Inyx Companies and/or the Inyx Operators were finalizing arrangements with other sources of funding either to buy out or significantly pay down the Inyx Companies’ debt to Westernbank (source: RICO complaint).
Oct 2006, Auditors cannot complete audit in UK.
November, 10 2006 Jay Green says final stages of due dilligence with Goldman Sachs, Wachovia, Credit Suisse. Jay Green requests a waiver of financial covenants. They are writing off $37M in receivables and that they are pre-billings. "Raised a red flag". Contacted Kachkar who claims this is only GAAP accounting and that receivable are good (source: Montanez)
November 17, 2006 personal guarantee from Kachkar and Benkovitch in the amount of $10 million (source: RICO complaint).
November 20, 2006 Mike Vasquez sends letter acknowledging the $37M in pre-billings. (source: Montanez)
Jan 2007 Last WHI Conference call. Stipes says Inyx is current and that it is not a bad loan. Might be acquired.
Jan 17, 2007 Jack Kachkar offers $148.6 million to buy Marseille soccer team.
Feb 21, 2007, Skepticism grows over Kachkar's funds
Money laundering worries. . French Press says
he has 386M Euros (same link).
Mar 2, 2007
Jay Green sends Westernbank a letter of commitment for financing from Pareto Securities. The letter turns out to be a forgery.
Mar 5, 2007
French Paper reveals that
TRACFIN, the French agency that investigates money laudering is investigating Kachkar and Benkovitch.
March 7, 2007 personal guarantee from Kachkar and Benkovitch in the amount of $8 million (source: RICO complaint).
Loans at $120M (source: Montanez).
Mar 14, 2007 Kachkar's claims to have purchased Grimaldi Castle exposed in
Provence Paper .
Mar 24, 2007 Robert Louis-Dreyfus decided not to extend a payment deadline for Kachkar to buy Marseille team.
Apr 11, 2007 Jose Biaggi tenders his resignation as CEO and President of Westernbank and member of the BOD.
In May 2007, Westernbank learned of a collateral deficiency under the Loan Agreements in excess of $80 million because of uncollectible accounts receivable. Various Inyx officers, including Kachkar, Green and Goldshmidt, thereafter gave false assurances to Case 3:07-cv-01606-ADC Document 3 Filed 08/23/2007 Page 32 of 54 33 Westernbank in June 2006 that the collateral deficiency was substantially less than this sum, the accounts receivable identified as uncollectible were in fact collectible, and/or that the collateral deficiency would be covered by other assets (source: RICO complaint).
May 2007, David Zinn says receivables probably not collectable (source Montanez).
May 14, 2007, Sahara Bank replies by SWIFT saying that it has no letter of credit from Qadahfi for Westernbank.
May 31, 2007 Meeting with Kachkar. He says receivables are good (source Montanez).
June 7, 2007, Kachkar and Benkovitch executed an Amended and Restated Limited Guarantee (the “First Personal Guarantee”) (attached Exhibit 14) guaranteeing, with certain limits as detailed in the First Personal Guarantee, all obligations of the USA Borrowers and the EU Borrowers to Westernbank under both the USA and EU Loan Agreements (collectively, the “Loan Agreements”), up to $30.1 million. The First Personal Guarantee was given “in substitution” of earlier guarantees (source: RICO complaint).
June 19, 2007 According to 8-K filed June 25, 2007, WB decides that the Inyx loan is impaired.
June 20, 2007, Kachkar and Benkovitch executed an additional Limited Guarantee (the “Second Personal Guarantee”) (attached Exhibit 15) guaranteeing, with certain limits as detailed in the Second Personal Guarantee, all obligations of the USA and EU Borrowers to Westernbank under the Loan Agreements in an amount equal to the sum of $70 million plus the amount that the repayment obligations under the Loan Agreements exceeded $142.4 million. This Guarantee was “in addition to and not in substitution of” the First Personal Guarantee for $30.1 million, which remained “continuously in effect.” (source: RICO complaint).
June 20, 2007, Kachkar and Benkovitch executed a Collateral Deficiency Letter (attached Exhibit 16), through which Kachkar and Benkovitch agreed to Case 3:07-cv-01606-ADC Document 3 Filed 08/23/2007 Page 12 of 54 13 provide certain collateral (the “Mining Collateral,” as defined in the Collateral Deficiency Letter) sufficient to cover the amount of the collateral deficiency under the Loan Agreements (source: RICO complaint).
June 22, 2007 Montanez says "We became concerned on approximately June 22nd." because David Zinn reports missing $4.1M in receivables at Inyx USA and 28M sterling missing at Inyx Pharma and 51M sterling missing at Ashton. They contact Zinn who says they will never be collected. Zinn also says $14M in funds have been diverted from lock box (source: Montanez).
June 25,2007 WB files the
8-K reporting the impairment. WHI stock falls.
As of June 28, 2007, Westernbank had made loans to the USA and EU Borrowers in the amount of $142,778,299.77 under the Loan Agreements. As of that date, numerous Events of Default under the Loan Agreements had occurred (source: RICO complaint).
June 28, 2007, administrators were appointed for Inyx Pharma and the EU Borrowers (source: RICO complaint).
June 29, 2007, Westernbank sent a demand letter to the USA Borrowers (attached Exhibit 17). In that demand letter, Westernbank informed the USA Borrowers that (i) the amount of the outstanding loans exceeded the amounts available under the lending formulas and (ii) Westernbank was demanding, as entitled under the Loan Agreements and the Cross-Default Agreement, for the immediate payment of such excess amounts, totaling $87,282,422. The demand letter also informed the USA Borrowers that all other “Obligations” as defined under the Loan Agreements had become due and payable (source: RICO complaint).
June 29, 2007, Westernbank sent a separate demand letter to Inyx Pharma and the EU Borrowers making the same demand as in the demand letter sent to the USA Borrowers but referring to the Obligations under the EU Loan Agreement that had become due and payable as a result of Event of Defaults under the EU Loan Agreement (attached Exhibit 18) (source: RICO complaint).
July 2, 2007, Inyx USA, as well as another Inyx subsidiary named Exearis, Inc., filed voluntary petitions for relief under chapter 11 of title 11 of the United States Code in the United States Bankruptcy Court for the District of Delaware (source: RICO complaint).
On or about July 3, 2007, Westernbank sent to Inyx, Inyx Pharma, Inyx EU and Ashton a “Notice of Default and Demand” (attached Exhibit 19). The Notice of Default and Demand stated that numerous defaults had occurred under the Loan Agreements (source: RICO complaint).
On or about July 3, 2007, Westernbank also issued letters to the Inyx Operators demanding payment under the Fraud Guarantees (attached Exhibit 20). By these letters, Westernbank demanded payment from the Inyx Operators of at least $80 million (source: RICO complaint).
On or about July 3, 2007 and on or about July 10, 2007, Westernbanki ssued letters to Kachkar and Benkovitch demanding payment under the Personal Guarantees and the furnishing of the Mining Collateral under the Collateral Deficiency Letter (attached Exhibits 21 and 22). Westernbank demanded from Kachkar and Benkovitch (a) payment in the amount of $30.1 million under the First Personal Guarantee, (b) payment in the amount of and $70,378,299.77 under the Second Personal Guarantee, (c) the furnishing of the Mining Collateral sufficient to cover the collateral deficiency under the Loan Agreements, and (d) compliance with and performance of their covenants under the Collateral Deficiency Letter (source: RICO complaint).
July 26,2007 The
Stipes Fights Back article published in Caribbean Business
Wednesday, October 10, 2007
Westernbank versus Inyx Timeline
This is a timeline to keep track of developments concerning the Inyx , Westernbank interaction
Posted by David at 10:10 PM