Tytan Holdings Inc (TYTN)

[CowsAndChickens]

MARK LEONARD’S BANKRUPTCY 341 MEETING 7/31/2013

Probably not one of Mr. Leonard’s better days.

Another long session (40 -50 minutes) ending with an agreement to enter into a “2004 exam” at a future date. This means the Trustee has more questions to ask and documents to demand.

This event was recorded and available to the public. Here are some notes I took.

1) Nevada corporations- These corporations were not listed as assets on the initial bankruptcy petition. They were on amendments. Leonard said he also transferred two of these to his daughters not very long ago and well within the last year. One of the two corporations had two vehicles. I can not say for sure but I suspect they are the same two vehicles he uses now and claims they are “company vehicles.” He says he transferred them to Tytan International. If all of what I just said is true then it sounds like Mr. Leonard executed a couple of what might be considered fraudlent transfers. One is the vehicles and the other are the corporations.

2) Bogden bankruptcy proceeds- In the last 341 meeting Leonard declared the Bogden judgment solely his property. This is in spite of the fact his Tytan Holdings filing claim otherwise. I had made the Trustee aware of a $33K distribution from the Bogden bankruptcy in favor of Mr. Leonard. This was not listed in the petition. The Trustee was very interested in this distribution. Mr. Leonard seemed to have a tough time understanding and answering the Trustee’s questions. Eventually we came to understand that about $9K was issued to Leonard/Tytan and the balance of about $24K was retained by attorney Simpson for services to pursue and adversarial case against Bogden. Leonard says that the $9K was eventually placed with Tytan International.
I suspect the Trustee intends to discover more about this matter.

3) Trustee asked about cash flow from Tytan. Leonard meekly said “it is getting better.” Trustee then asked about the $66k in back rent now owed to the bankruptcy estate by Tytan International. He wanted to know when it could be brought current. Mr. Leonard said “it would have a tough time doing that.”
Trustee then asks, “why should I not evict Tytan International.” Mr. Leonard suggested that he might be able to come up with something. Trustee says “you better make it quick.” Leonard’s attorney telling him he should be careful of what he says now as the Trustee will hold him to it. Mr. Leonard states that he could probably do $2500 per month. The Trustee states “that does not speak to the back rent.”

4) Meeker property and homestead. I am not sure what the status is on the homestead. From the sound of this it seems that because the Trustee wants the rent from the Meeker property maybe the homestead is not being recognized. Or maybe they are separate issues. Yet to be determined. As a side note Mr. Leonard claimed in his bankruptcy “means test” that he obtained $4000 per month in rent. Does not say if this is the same rent that is supposed to come from Tytan. It also came out that Mr. Leonard received social security.