TO: File/108.2

FROM: JGC

DATE: June 7, 1993

RE: Telephone call - Dick Poulos

Today, Dick Poulos called up about the Involuntary Petition. Dick’s main point was that appointing the trustee to take over the lawsuit was i)impractical and ii) would deprive Cathy Petit and her attorney’s of any incentive to pursue the lawsuit. The reason for the latter point was that her debt outweighed the value of the suit.

I pointed out to Dick that we were aware of that possibility and that the creditors were certainly aware that it was not in their best interests to have the trustee actually take over the lawsuit. We discussed the possibility of some agreement whereby the creditors agree that Cathy Petit and her attorney can continue with the lawsuit but in some way securing any recovery from the lawsuit to go to payment of creditors at least in part. I told Dick that I would be happy to entertain such a concept but that first I would have to have more information about the "big picture." Specifically, I told him that I would need to have a better idea of what her overall debts were and what the value of the lawsuit was. In addition, I told Dick two separate times that we would have questions about what happened to the money from the Bernstein, Shur settlement. Dick indicated that he did know.

Dick then went on to discuss the Petit lawsuit. He indicated that the one count that in remaining is the lower court is of insignificant value because it claims an interference with business relationship at a time when she was already severely damaged. On the other hand, he believes that their appeal to the Law Court has a good chance of success.

Dick indicated that he would not be representing Cathy Petit in this matter but that he would strongly encourage that she sit down with her creditors and try to work out some agreement. I told him that I would support such a move.