Date: Thu, 03 Sep 1998 12:03:53 -0700 From: Darrell Todd Maurina Reply-To: Darrell128@aol.com Organization: Christian Renewal/United Reformed News Service To: crc-voices@Calvin.edu Subject: NR 98084: Bankruptcy Court Postpones Action on CRC Lawsuit; Concerned IRM Investors Leader to Chair New Committee NR #1998-084: Bankruptcy Court Postpones Action on CRC Lawsuit to Remove IRM Management; "Concerned IRM Investors" Leader to Chair New Investors Committee In its first major actions on the IRM investment case, the United States Bankruptcy Court for the Eastern District of California has rejected a request to process a lawsuit on "shortened time" that had been initiated by three Christian Reformed agencies, the Barnabas Foundation, and twenty individuals. In an August 31 closed-door meeting, the court also approved the election of an eleven-member investors committee which will provide key advice to the court on the reorganization and final disposition of the assets of IRM Corporation, a California-based real estate firm which until October of last year had accepted $228 million in investments from individuals and institutions, many though not all affiliated with the Christian Reformed Church. The chairman, secretary, and two other members of the new investors committee are Jay Mol and Michael Vanni, both leading members of an informal organization titled "Concerned IRM Investors" which has been severely critical of the actions of CRC agencies with regard to IRM. The main litigation before the bankruptcy court asked it to appoint a Chapter 11 trustee to administer the operations of IRM, thereby removing the current management from day-to-day control of the organization. The "shortened time" procedural motion which the court rejected on Monday would have processed the request to remove the IRM management on only five day's notice and its rejection by the court does not necessarily indicate the court's attitude toward the main litigation. NR #1998-084: For Immediate Release: Bankruptcy Court Postpones Action on CRC Lawsuit to Remove IRM Management; "Concerned IRM Investors" Leader to Chair New Investors Committee by Darrell Todd Maurina, Press Officer United Reformed News Service SACRAMENTO, CALIF. (September 1, 1998) URNS -- In its first major actions on the IRM investment case, the United States Bankruptcy Court for the Eastern District of California has rejected a request to process a lawsuit on "shortened time" that had been initiated by three Christian Reformed agencies, the Barnabas Foundation, and twenty individuals. In an August 31 closed-door meeting, the court also approved the election of an eleven-member investors committee which will provide key advice to the court on the reorganization and final disposition of the assets of IRM Corporation, a California-based real estate firm which until October of last year had accepted $228 million in investments from individuals and institutions, many though not all affiliated with the Christian Reformed Church. The chairman and secretary elected by the new investors committee are Jay Mol and Michael Vanni, both leading members of an informal organization titled "Concerned IRM Investors." The Concerned Investors, all but two of whom are CRC members, have been severely critical of the actions of CRC agencies with regard to IRM. "Those present at the meetings hosted by the Concerned Investors Committee were urged to tie up the phone and fax lines to the CRC headquarters and "give them the message,'" wrote CRC executive director of ministries Dr. Peter Borgdorff in a July letter to IRM investors. The main litigation before the bankruptcy court asked it to appoint a Chapter 11 trustee to administer the operations of IRM, thereby removing the current management from day-to-day control of the organization. The "shortened time" procedural motion which the court rejected on Monday would have processed the request to remove the IRM management on only five day's notice and its rejection by the court does not necessarily indicate the court's attitude toward the main litigation. The lawsuit will now be heard on the court's normal schedule giving IRM and other parties 21 days to respond rather than having to respond on an emergency basis. All of IRM's top management are members of the Christian Reformed Church, mostly in two suburban San Francisco churches: Valley Community CRC of Napa and Walnut Creek CRC. The IRM principals include a number of leading Christian Reformed laypeople, among them former board members of three of the entities now suing IRM. Despite the trust the agencies once placed in the IRM officials, their lawsuit now cites serious objections to IRM management. "Given the current impasse between IRM and the Committee of IRM creditors and investors and the fact that the IRM principals have fraudulently managed IRM and IRM-related entities, it is imperative that IRM and all IRM-related entities be restrained from attempting to sell or transfer IRM assets or to dispose of or alter any IRM documents; and that a receiver be immediately appointed to preside over the management of IRM," the CRC alleged in its lawsuit. In addition to Mol and Vanni, the new IRM investors committee members include Ken Horjus representing the Christian Reformed agencies, Barnabas Foundation executive director David Vander Ploeg, Concerned Investors Frank Deppe and Marvin Helder, and California businessman Henry Conversano. Additional members are Art Den Dulk, Fred LeFebre, Phil Wiltjer, and Dirk Mellema. All committee members except Vanni and Conversato are members of the CRC. According to sources familiar with the court proceedings but not formally affiliated with either the Concerned Investors or the Christian Reformed agencies, the CRC won't have an easy time with the new committee. According to one large IRM investor, during the investors committee meeting which selected the investors committee, a number of investors applauded when negative comments were said about the actions of the Christian Reformed Church. The investor also said the US Bankruptcy Trustee rejected a request by the Christian Reformed agencies to place on representative from each of the three CRC agencies with IRM investments on the committee, arguing that because they shared a common interest they should be represented by only one committee member. Speaking on condition of anonymity, a Christian Reformed minister sympathetic to the position of the agencies expressed concern that IRM was "winning the public relations battle" and that the CRC position wasn't being adequately presented to the court and the public. Committee chair Jay Mol and Barnabas Foundation executive director Dave Vander Ploeg remained in Sacramento on Tuesday for an additional day of investors committee meetings and were not immediately available for comment. CRC executive director of ministries Dr. Peter Borgdorff did not return calls to his office on Tuesday requesting comment on the committee appointment. While the Concerned IRM Investors leadership was in the Investors Committee and unavailable for comment, two Concerned Investors said they were pleased by the committee makeup. "It has been a better day than I thought it would be," said Grand Rapids businessman Ron Van Antwerp. "I think there were good people put on the committee, and it'll be a better day than it has been." "This committee has a function now; they have to move or the judge will be on their tail," said retired Grand Rapids dentist Bob Plekker. "They have to perform, this is a federal court." While glad the dispute is moving toward resolution, both Plekker and Van Antwerp said they were sorry earlier attempts to settle the matter out of court didn't succeed. "It is a shame a dispute like this between Christians is in any court, let alone in federal court," said Plekker. Cross-References to Related Articles: #1998-006: Classis Chatham asks Top Christian Reformed Administrative Committee to Appoint Independent Investigators of $11.5 Million in Questionable Investments #1998-028: Classis Lake Erie Overtures Christian Reformed Synod to "Ensure the Editorial Freedom of the Banner" #1998-067: IRM Debate Extends Synodical Session #1998-068: Synod Responds to Possible Multimillion Dollar Fund Loss #1998-080: IRM Investment Debacle Leads to Litigation; Estimate of Funds at Risk Balloons from $11.4 to $228 Million #1998-083: IRM Declares Bankruptcy; CRC Files More Litigation Seeking Removal of IRM Management Contact List: Dr. Peter Borgdorff, Executive Director of Ministries, Christian Reformed Church 2850 Kalamazoo Ave. SE, Grand Rapids, MI 49560 O: (616) 246-0832 * H: (616) 957-3288 * E-Mail: borgdorp@crcna.org David Buurma, Senior Vice President for Client Services, IRM Corporation John Barnard, Consultant, IRM Corporation Office: 2151 Salvio St., Suite 325, Concord CA 94520 Mailing: PO Box 3000, Concord, CA 94522-3000 O: (925) 676-1966 * FAX: (925) 676-1744 Concerned IRM Investors c/o 7123 Brooklyn SE, Grand Rapids, MI 49508 Dr. David Engelhard, General Secretary, Christian Reformed Church in North America 2850 Kalamazoo Ave. SE, Grand Rapids, MI 49560 O: (616) 246-0744 * H: (616) 243-2418 * FAX: (616) 246-0834 * E-Mail: engelhad@crcna.org Marvin Helder, Concerned IRM Investors Voice: (616) 698-6237 * FAX: (616) 698-1274 Paul Heule, Partner, Eenhoorn L.L.C. Office: 2610 Horizon Dr. SE, Suite C1, Grand Rapids, MI 49546 Mailing: PO Box 88335, Kentwood, MI 49512 O: (616) 530-5500 * FAX: (616) 530-0850 Ken Horjus, Director of Finance and Administration, Christian Reformed Church in North America 2850 Kalamazoo Ave. SE, Grand Rapids, MI 49560 O: (616) 224-5889 * FAX: (616) 224-5895 Jay Mol, Concerned IRM Investors O: (616) 669-8960 * FAX: (616) 669-5368 * E-Mail: jcmol@aol.com Robert Plekker, Concerned IRM Investors Voice: (616) 896-8134 * FAX: (616) 896-6699 * E-Mail: shiptooth@aol.com Ron Van Antwerp, Concerned IRM Investors Voice: (616) 455-2320 * FAX: (616) 281-3514 David Vander Ploeg, Executive Director, The Barnabas Foundation 15127 S. 73rd Ave., Suite G, Orland Park, IL 60462 O: (708) 532-3444 * FAX: (708) 532-1217 Michael Vanni, Concerned IRM Investors H: (415) 861-8091 * O: (415) 431-8747 * FAX: (415) 431-8758 ---------------------------------------------------------- file: /pub/resources/text/reformed/archive98: nr98-084.txt .