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Georgia Bard

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Alias Born 08/30/2000

Georgia Bard

Re: None

Sunday, 01/07/2001 11:13:50 PM

Sunday, January 07, 2001 11:13:50 PM

Post# of 484
This happens when a company tries to complain about the a debenture holder shorting, take (OTC: LONE) in April of 1999 when they tried to fight Thomson Kernaghan out of Canada.

This Court has considered NAC's other contentions in support of reargument and find them to be without merit, e.g., that NAC is entitled to a "set off" because Thomson has been making "short" sales of NAC stock resulting in nothing being owed to Thomson under the debenture; and that it is unlawful in other jurisdictions to escrow unrestricted shares.

http://www.courts.state.ny.us/nycdlr/issue2-5/kernaghan.html

Heck TK got aContempt Order Filed in Conjunction With The Company's Pending Suit Against LifeOne For Failure To Deposit 4 Million Shares Court Intends to Incarcerate LifeOne's CEO

On March 16, 1999, New York Supreme Court Justice Charles E. Ramos charged LifeOne in contempt for refusing to obey the Court's Order on August 27, 1998 to deposit four million unrestricted shares into an escrow account of Thomson Kernaghan & Company, Ltd.

LifeOne has again been ordered to place the shares in escrow and will now be fined $10,000 by the Court for each day since August 27, 1998 in conjunction with its previous failure to comply with the Court's Order. The Company will also be fined $20,000 for every day it flouts the Court's March 16, 1999 contempt Order. LifeOne will be responsible for all attorneys' fees and expenses incurred by Thomson Kernaghan & Company, Ltd. The payment of monetary fines and attorneys fees may be delayed until the bankruptcy filing against LifeOne is dismissed.

Subsequently, in connection with ongoing arbitration in New York, Thomson Kernaghan filed for emergency relief to prohibit LifeOne from carrying out its recently announced plan to place all of its assets in subsidiaries which would be spun off to existing shareholders. On April 12, 1999, New York Supreme Court Justice Ramos granted Thomson Kernaghan's motion. Justice Ramos also stated that it was his intent to order LifeOne's CEO, T. Brent Chapell, to be incarcerated until LifeOne complied with the Court's March 16 Order to deposit four million shares.

Companies like Thomson Kernaghan are responsible for many convertible debentures ... research JAWZ, CCCZ, RTIN,T:XPL, ASE:DDI, SMRI, CDN:NGAM, SXML (this one is not to bad), RKS.T etc.

However, http://www.nationalpost.com/financialpost.asp?f=990112/2173914 shows the debenturer will sue chat posters and message boards in a heartbeat.

Just unbelieveable what goess on in the convertible debenture market. However some of the bigger stock do just fine because they have the clauses that protect them basically.

All a matter of how deperate the company is and how much are they willing to give the company up for in intital $$$$.

Gary

:=) Gary Swancey

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