The founder of Balcones Chip Tate retains a 27 percent interest in the company despite a major capital investment finalized without him, a board representative wrote to me in an email.
The board of Balcones, which is suing Tate in civil court, issued a public statement posted online by WhiskyCast Tuesday saying it had finalized a $15 million dollar investment deal. All of the money came from within the board, according to the statement issued by board member Michael Rockafellow.
Earlier this month, the board filed a civil lawsuit against Tate, alleging that he had taken actions detrimental to the company and refused to cooperate with the board’s efforts to raise capital.
In a court filing responding to the allegations, Tate said the board had tried to force him out and wrest away his share of the company.
Tate referred to a letter of suspension issued by the board to him last month as a “termination.” He contended that the board didn’t have the power either to suspend him or to approve major investments without his consent.
The company agreement states that Tate’s presence is necessary for the board to establish a quorum.
Tate is under a gag order prohibiting him from discussing the case, but has joined Twitter, where he has said that future court filings will reveal new information about the legal battle.
— Chip Tate (@chiptatewhisky) September 18, 2014