Opinion ID: 757306
Heading Depth: 3
Heading Rank: 2

Heading: LHLP Fails to Meet its Obligations to the Pension Fund

Text: 30 Following the Pension Fund's investment in LHLP, LHLP failed to meet its budgeted performance for each month in 1990 except for the month of March. By July 1991, LHLP did not have sufficient cash flow to make its interest payments on the note held by the Pension Fund. 31 In July 1991, Chairman Carlough instructed Williams to do a comparison of the performance of the portfolio compared to those projections which we were given by Larken at the time we were presented with the investment. (J.A. 1263). Edward Williams' comparison showed that the hotels were performing substantially below the projections the Pension Fund was provided at the time of its investment in LHLP. On behalf of the Pension Fund, Edward Williams wrote James Beck and Charles Underbrink on July 31, 1991, requesting that Larken, Inc. immediately develop a cohesive plan to deal with the default and with the apparent problems with the hotel portfolio. (J.A. 1264). The letter also warned that Chairman Carlough was willing for the Pension Fund to take whatever action is necessary to protect the Fund's investment in the hotel portfolio. Id. 32