site all of Abacor's historical financial documents. As a result, the buyers subsequently hired two accountants to attempt a reconstruction of the company's financial history in an attempt to discover the reason why the business was failing. The first accountant was fired after a confrontation with James where concerns were raised about the company's financial performance during the period just prior to its sale to the buyers. The second accountant also began to question whether the business had been profitable before it was sold but couldn't pinpoint the reason why the company was failing.
The buyers stopped making their monthly note payments after January 1998. On February 26, 1998, the sellers commenced a replevin action in Hennepin County District Court for the State of Minnesota. Digital Resource filed itsAgreement which remain property of the Plaintiff, including in particular all specific accounts receivable that were in existence as of the time of the Asset Purchase Agreement and remain unpaid, all specific inventory that was in existence as of the time of the Asset Purchase Agreement and remains unsold by Plaintiff, and all specific equipment that was in existence as of the time of the Asset Purchase Agreement and that remains property of the Plaintiff. Receivables that became due after the date of the Asset Purchase Agreement, inventory that was acquired after the Asset Purchase Agreement, and equipment that was purchased after the Asset Purchase Agreement, are not "Purchased Assets."
The memorandum of August 5, 1999 also amended the bankruptcy court's previous findings of fact and conclusions of law