Nursery Products' Hinkley Proposal
Operating on Financial Fumes
Company seeks temporary relief from judgment.
Released: November 13, 2011
Nursery Products, the company attempting to build a sludge composting plant
near Hinkley, California, has filed for legal relief from an attorney fee judgment, accepted
earlier by settlement agreement, in which Nursery Products had agreed to pay for costs stemming
from California Environmental Quality Act litigation.
In a declaration to the court by the president of Nursery Products,
Jeff Meberg, Meberg states, "Under the terms of the settlement, Nursery Products agreed to pay the
$265,715.55 in trial fees and $14,440.58 in costs awarded by the Court by July 29, 2011.
Interest accrued at 7% starting June 4, 2009. Additionally, Nursery Products was required
to pay $195,000 for the appellate fees and costs incurred by Petitioners. An initial payment
of $100,000 was due by December 31, 2010, with the remaining $95,000 due by July 29, 2011.
Interest accrued at 7% beginning July 1, 2011. Nursery Products paid $100,000 to Petitioners
by the deadline of December 31, 2010, in partial satisfaction of the appellate court fees and
Meberg's declaration dated October 18, 2011, goes on to state, "Until the
writ of mandate is discharged and the permits for grading and building are issued by the County of
San Bernardino, Nursery Products is unable to access its Small Business Association loan. Once
the project is open and operating, there will be an immediate income stream available to Nursery
Products. These funds then can be used to pay the settlement amount to Petitioners."
The declaration further states, "...an extension of the payment deadline
until February 28, 2012 is needed to avoid hardship to Nursery Products. The hardship stems
from the delayed opening of Nursery Products' facility in Hinkley and as a result, no income stream
is being generated that can be used to pay Petitioners."
The indication of the declaration is that Nursery Products is not
currently solvent to meet its immediate obligations. What is expected to make it viable by
the stated February 28, 2012 date isn't stated; however, a financial shell game based upon
uncertain future revenues appears to be playing-out on the start-up expenses.