GTC Dissolves Oneida Seven Generations Corporation
By Nate Wisneski - Kalihwisaks (firstname.lastname@example.org)
After 814 votes the Oneida Seven Generations Corporation
(OSG) is no more as the Oneida General Tribal Council (GTC) voted to dissolve
the company during a special GTC meeting on Sunday, December 15.
The embattled tribally owned corporation had faced recent tumultuous
times as it focused on a proposed waste-to-energy facility. The plant
temporarily found homes in Hobart, Ashwaubenon, Green Bay, and Oneida before
ultimately being shelved after the GTC voted it out of reservation boundaries.
OSGC fully owned and operated seven limited liability
companies (LLC) and had partial ownership of five others. Between those 12 LLCs there were 15
properties under OSGC management.
It is unclear on the exact timeline and resources needed to
complete the dissolution but the auditing firm McGladrey & Pullen, who
performed an audit on the company, advised the task would take about 10 to 12
According to Chief Financial Officer Larry Barton a minimal
impact of $7.8 million will be felt by the tribe immediately to pay down eight
loan agreements. The agreements allow the lenders to immediately call for the
debts to be paid. OSGC’s five other loan agreements total $17.6 million.
Along with the loan agreements an unknown amount will be
needed to dissolve OSGC. Barton projects consultation fees exceeding $100,000
along with a loss of over $10 million in fair market value of assets owned by
the company. Litigation with joined LLCs, and an impact to the tribe’s business
and credit reputation may be felt.
The tribe’s next steps also remain unclear. They are meeting
Monday, December 16 with petitioner Frank Cornelius to identify what the
necessary course of action will be to carry out the GTC directive.
The final vote count was 814 supporting the dissolution
while 689 opposed. 69 abstained from voting.