EXHIBIT 99.1
Franklin C. Adams, Esquire
(State Bar No. 85351)
A Professional Corporation
370 West Sixth Street, Suite 110
San Bernardino, California 92401-1152
Telephone No.: (714) 888-2123
Attorney for Chapter 11 Trustee, Arturo Cisneros
UNITED STATES BANKRUPTCY COURT
CENTRAL DISTRICT OF CALIFORNIA
In re CASE NO. SB 93-20802-DN
MRI Medical Diagnostics, Inc. CHAPTER 11
a Colorado Corporation
ORDER APPROVING
APPLICATION TO COMPROMISE
CONTROVERSY
Debtors.
Date: August 29, 1995
Time: 10:30 AM
Courtroom: 1
The Application to Compromise Controversy of Arturo Cisneros,
Chapter 11 Trustee, came on for hearing at the above date, time and place
having been continued from August 8, 1995. Franklin C. Adams appeared on
behalf of Arturo Cisneros, Chapter 11 Trustee, who was also present;
Norman L. Hanover appeared on behalf of Michael Sunstein and Tri-National
Development Corporation; Paul Brent appeared on behalf of Gary Pagar for
Med-First. The Court Finds that due and proper notice of said
Application of Compromise and Controversy was duly given; and with cause
appearing;
IT IS HEREBY ORDERED, ADJUDGED AND DECREED
That the Application to Compromise Controversy be and is hereby
approved with the following modifications thereto;
a. That the sum of $80,000.00 shall be paid to Arturo
Cisneros, Trustee in good funds, United States dollars, no later than
September 27, 1995, with the balance of funds, $20,000.00, to be due and
owing pursuant to the terms and conditions of the application, that being
June 1, 1996.
b. The estate shall, in addition to the above amount, receive
30% of the net proceeds of litigation presently pending in the San
Bernardino County Superior Court against Chino Valley Bank in which MRI
Grand Terrace, a wholly owned subsidiary of the Debtor, would otherwise
be entitled.
c. The estate shall retain a security interest in the stock
of MRI Grand Terrace, to be released upon payment of all sums due under
said agreement and the terms and conditions of the good faith settlement
and order thereon.
d. The terms as set forth, Application to Compromise
Controversy shall be incorporated herein as part of this order except as
otherwise modified herein.
e. The Trustee is authorized to execute any and all documents
necessary to effectuate the terms and conditions of the compromise and
sale of stock.
f. The Trustee shall also as part of the terms and conditions
of sale and compromise and with reference to the pending Chapter 7 case
in San Diego Bankruptcy Court, Southern District of California Case No.
95-06288JM for Grand Terrace Inc. do the following:
Either obtain the removal of the action of the pending Chapter 7
case from the San Diego Court of the Southern District of California to
the San Bernardino Division of the Bankruptcy
Court of the Central District of California or, in the alternative, the
Trustee shall use his best efforts to have the aforementioned case
dismissed. Either the actual removal or best efforts by the Trustee to
obtain the dismissal of the case shall be deemed satisfaction of this
condition.
g. Pursuant to the Application to Compromise Controversy, the
Trustee is also authorized to pay to the law firm of Duckor & Spradling
the sum of $22,600.00 as follows:
i. One half, or $13,300.00, upon receipt of the funds due to
be deposited with the Trustee on September 27, 1995.
ii. The remaining one half upon receipt of the balance of the
settlement funds due on June 1, 1996.
2. Trustee is also directed to return to Med-First the $15,000 deposit
initially paid to the Trustee.
Date: AUG 31 1995
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/s/ DAVID N. NAUGLE
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David N. Naugle, Judge of the United
States Bankruptcy Court
Approved as to form and content:
Date: 8/30/95 /s/ NORMAN L. HANOVER
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NORMAN L. HANOVER, Attorney for
Tri National Development
Corporation
Date: 8/31/95 /s/ TIMOTHY J. FARRIS
----------------------------------
TIMOTHY J. FARRIS, ESQ.
Office of the United States Trustee
In re Chapter 11
MRI Medical Diagnostics, Inc., Case No.:
a Colorado Corporation SB 93-20802-DN
NOTICE OF ENTRY OF JUDGMENT OR ORDER
AND CERTIFICATE OF MAILING
TO ALL PARTIES IN INTEREST ON THE ATTACHED SERVICE LIST:
1. You are hereby notified, pursuant to Local Bankruptcy Rule
116(1)(a)(iv), that a judgment or order entitled (specify):
ORDER APPROVING APPLICATION TO COMPROMISE CONTROVERSY
was entered on (specify date): AUG 31 1995
2. I hereby certify that I mailed a copy of this notice and a true copy
of the order or judgment to the persons and entities on the attached
service list on (specify date):
Dated: AUG 31, 1995 JON D. CERETTO
Clerk of the Bankruptcy Court
/s/
---------------------------------
Deputy Clerk
SERVICE LIST
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Timothy J. Farris, Esq.
Office of the U.S. Trustee
106 Federal Building
699 North Arrowhead Avenue
San Bernardino, CA 92401
Arturo Cisneros, Trustee
290 N. "D" Street, Ste. 723
San Bernardino, CA 92401
Franklin C. Adams
Attorney at Law
370 W. Sixth Street, Suite 110
San Bernardino, CA 92401
Norman L. Hanover
Attorney for Tri National Development Corp.
HANOVER & SCHNITZER
P.O. Box 71
San Bernardino, CA 92402
Mark K. Worcester, Esq.
PINTO, GROMET, DUBIA & WORCESTER
2 Park Plaza, Suite 300
Irvine, CA 92714
Steven Cote
ARTER & HADDEN
Jamboree Center
2 Park Plaza, Ste 700
Irvine, CA 92714-8517
Ronald H. Kabot
2 Lake Helix Dr.
La Mesa, CA 91941
Scott L Metzger
DUCKOR & SPRADLING
401 West A Street, Suite 2400
San Diego, Ca 92101-7809
Paul Brent
STEINBERG, NUTTER & BRENT
501 Colorado Ave., #300
Santa Monica, CA 90401-2426
Gary Pagar
MEDFIRST CAPITAL RESOURCES, INC.
600 Corporate Point, Ste 200
Culver City, CA 90230