On December 3, 2010 Basic Chemical Solutions claimed "That Mr. Tsang misrepresented and/or made material omissions regarding the financial health of Evergreen to BCS" (BCS= Basic Chemical Solutions)
"As a result of Mr. Tsang's material omissions regarding Evergreen's deepening insolvency BCS continued to deliver the caustic soda and was damaged in the amount of $904,875.07."
In an affadavit found in court records and dated July 14, 2010, David K.K. Tsang said that he was employed by Evergreen Pulp on January 21, 2005 and was Chief Executive Officer until February 8, 2009. He was also employed by Hydro Syntec Chemicals and was still their Chief Executive Officer at that time.
Question: "But you were wearing two hats at the same time, correct?
Tsang: "I was employed by both companies at the same time."
Tsang: "Hydro Syntec had a contract with Lee and Man Chemicals to market their product in the U.S."
Tsang:"So therefore our sole existence is dependent on being backed up by a producer."
Question: "So Lee and Man Chemicals is the producer?
Question: "To Whom did it sell?"
Tsang: "Samoa Acquisition Corporation"
Mr. Tsang went on to state that Evergreen was not owned by a subsidiary of Lee and Man.
When Mr. Tsang was asked who would know how Evergreen was billed, he answered "Tracy, but couldn't remember her last name. Furthermore Mr. Tsang said he did not know the whereabouts of Steve Edmonton the Chief Financial Officer.
Mr. Tsang said that BCS did not want the caustic soda back, so he sold it to Port Townsend Paper for $107,700
Evergreen was sold to Samoa Acquisitions for 2- 2.5 million. The proceeds went to pay off creditors, but BCS was paid nothing not even the amount they got for the sale of the caustic soda that they got from BCS.
Question: "You were not part of the new management team correct? (meaning Freshwater Tissue?)
Tsang: "I was not part of that management team."
This information and more is available in court records. Anyone can view the records. There are four files full of information (3 of them 3-4 inches thick). There are many unanswered questions:
If Evergreen went under and had no money, where are Evergreen of Colorado and David K.K. Tsang getting the money for the lawyers to write all these legal briefs?
Evergreen and Lee and Man advertised that Evergreen was a subsidiary of Lee and Man. Even documents of the North Coast Water Board state that Evergreen was a subsidiary of Lee and Man. We remember that Evergreen was listed on the Lee and Man website.??????????
People have reported that David K.K. Tsang was originally listed on the website of Freshwater Tissue.???????????????? (Memo, there were a number of owners between Samoa Acquisition and Freshwater Tissue Co.)
Why has this case been postponed for over 3 years?
"Oh what a tangled web we weave"!!!!!!!!!!!!!!!!!!!!!!