In an end-run around federal regulators who seized control of his savings and loan firm nearly two years ago, ousted American Diversified Savings Bank owner Ranbir Sahni has regained at least temporary control of nearly 25% of the ailing institution's assets.
Sahni, who created a complex pyramid of real estate investment businesses under the umbrella of the Costa Mesa-based S&L, fought off a court challenge Friday to his management of 41 investment syndicates that own $171 million worth of rental properties in 22 states.
Sahni in 1984 entered the properties on the S&L's books as assets.
The syndicates are limited partners in another Sahni-owned company--American Diversified Partners--that effectively has been controlled by the federal government since February, 1986, when the Federal Savings and Loan Insurance Corp. was named conservator of the S&L.
While American Diversified Partners is not directly linked to the S&L, it had been managed until last week by American Diversified Investment Corp., which is a direct subsidiary of the American Diversified Savings Bank. Sahni's attorney, Ronald E. Gregg, said Monday that the $171 million worth of properties grossed nearly $20.2 million last year but had a net loss of $7.6 million.
FOR THE RECORD
Los Angeles Times Wednesday October 14, 1987 Home Edition Business Part 4 Page 2 Column 6 Financial Desk 2 inches; 47 words Type of Material: Correction
The value of American Diversified Savings Bank's interest in 41 real estate limited partnerships is carried on the institution's books at $8 million, or about 1% of the S&L's $743 million in assets. A story in Tuesday's Business section incorrectly reported the value of the Costa Mesa-based savings bank's interest in the partnerships.
On Oct. 3, Sahni claimed that ADIC was insolvent, Gregg said, and, acting under the terms of the partnership agreement between ADIC and American Diversified Partners, ousted ADIC as general partner and named himself to the post.
Thomas Haupert, the S&L's president, said Monday that he believes that Sahni named himself general partner to circumvent previous bankruptcy court rulings that had removed him from an active property management role.
ADIC, claiming that it was not insolvent, sought an Orange County Superior Court order Friday to halt Sahni from acting as ADP's general partner, from transferring any ADP-managed property and from taking any money from ADP.
Superior Court Commissioner Eleanor Palk denied ADIC's request, but did order Sahni not to take any money from ADP and not to sell any property pending a full hearing--set for Oct. 26--on the legal issues.
Sahni has been tangling with regulators in various courts since they seized American Diversified Savings and its subsidiaries.