Updated: Oneida Chairman, Petition Looking to Revisit GTC Decision to Dissolve OSGC; Sage Stone Management named agent
By Nate Wisneski – Kalihwisaks (firstname.lastname@example.org)
@NWisneski_Kali - Follow me on Twitter
After The General Tribal Council (GTC) voted to dissolve Oneida Seven Generations Corporation (OSGC) a push by two separate parties to reconsider the decision is underway.
On December 17, two days after the GTC decision to dissolve, Oneida Tribal Chairman Ed Delgado sent a memo to the Oneida Business Committee calling a special GTC meeting to reconsider the dissolution.
“The recent corporate dissolution action taken by General Tribal Council is not in the best interest of the tribe and will result in a detrimental impact on our finances, future bargaining position, and business reputation of the tribe,” said the memo.
The embattled tribally owned corporation had faced recent tumultuous times as it focused on a proposed waste-to-energy facility. The plant temporarily found homes in Hobart, Ashwaubenon, Green Bay, and Oneida before ultimately being shelved after the GTC voted it out of reservation boundaries.
One day after Chairman Delgado’s action a petition created by Loretta Metoxen was turned into the Tribal Secretary’s office looking to revisit the actions of GTC.
“During that meeting it appeared the GTC did not have a full understanding of the motion, nor were they given ample time for a clear and uninterrupted discussion,” she said.
“We would like to see all the facts laid out in front of us, with an honest and clear presentation of what it would mean to the Oneida Nation as a whole, if we were to dissolve (OSGC),” added Metoxen.
OSGC fully owned and operated seven limited liability companies (LLC) and had partial ownership of five others. Between those 12 LLCs there were 15 properties under OSGC management.
It is unclear on the exact timeline and resources needed to complete the dissolution but the auditing firm McGladrey & Pullen, who performed an audit on the company, advised dissolution would take about 10 to 12 months.
According to Chief Financial Officer Larry Barton a minimal impact of $7.8 million will be felt by the tribe immediately to pay down eight loan agreements. The agreements allow the lenders to immediately call for the debts to be paid. OSGC’s five other loan agreements total $17.6 million.
Along with the loan agreements an unknown amount will be needed to dissolve OSGC. Barton projects consultation fees exceeding $100,000 along with a loss of over $10 million in fair market value of assets owned by the company. Litigation with joined LLCs, and an impact to the tribe’s business and credit reputation may be felt.
Delgado’s memo calls for a $25.6 million budget line to be added in the FY2014 budget to allow for the dissolution of OSGC.
The Oneida Business Committee has met on multiple occasions with dissolution petitioner Frank Cornelius. Cornelius is looking to have a streamlined and speedy dissolution process in which many of his questions related to the company are answered.
“I’m running deadlines for (the OBC),” said Cornelius. “(The GTC) assigned me to assist in dissolving. I need to know what (OSGC) stands for and I need to know this. (GTC) put me in charge to work with them and dissolve (OSGC),” said Cornelius.
The final vote count at the December 15 Special GTC meeting was 814 supporting the dissolution while 689 opposed. 69 abstained from voting.
Oneida Business Committee Appoints
Agent to Oneida Seven Generation Corporation
Tuesday, December 24, the Oneida Business Committee took action to modify
the corporate charter of the Oneida Seven Generation Corporation. The modification resulted in the
appointment of an Agent. Sage
Stone Management, LLC is appointed as agent and shall remain in office until
such time as the dissolution of the corporation has been completed or
amendments to the corporate charter are made.
Sage Stone Management LLC, under Gene Keluche, will devote
the necessary time to the corporation to stabilize the corporate relationships
between all clientele and partners.
In addition, he will review the corporate structure and prepare and
report recommendations to the Oneida Business Committee as agreed. The Oneida
Business Committee will receive weekly reports from the agent.
Chairman Delgado comments, “We have a commitment to act in
the best interest of the Tribe and to carry out the directives of our General
Tribal Council. I believe our action today will lead us to a stronger and more
responsible manner of conducting business. The corporate board of the Oneida Seven Generation
Corporation brought their entity many successful business partnerships, but at
this time we need to assess our future and move in a different direction.”
Chairman Delgado has called for another General Tribal
Council to review the action taken on December 15th, to dissolve the Oneida
Seven Generation Corporation. That
meeting date has not been determined at this time.