The Collapse Of Gulf Gulf’s Plunge Into Bankruptcy

A look at the events leading up to the demise of Gulf Resources and Chemical Corp.

1989

March - David J. Rowland buys a controlling interest in Gulf.

Sept. - Gulf directors meet at exclusive French resort in Cap Ferrat, discuss uses for company’s money.

Sept. - Gulf buys $32 million stake in Storehouse Plc., a British retail store chain.

Nov. - Gulf opens offices in Monaco, London and New York.

Dec. - New Zealand land acquisitions begin. Ultimate cost, more than $100 million.

1990

Sept. - Rowland writes North Idaho families, promises to make good on retiree benefits and environmental liabilities.

Nov. - Panamanian firm controlled by Rowland buys industrial site in Kidderminster, England.

1991

Jan. - Kidderminster site sold to Gulf, reportedly for double the price.

May - Gulf invests in hunt for sunken treasure in Gulf of Oman.

July - Graham Ferguson Lacey buys Rowland’s stake in Gulf. Gulf begins sending $25,000 a month to Bermuda company controlled by Lacey as payment for his services to Gulf.

Sept. - Gulf spends millions for two United Kingdom tourist spots and a Scottish castle.

1992

April - Gulf reportedly pays off Lacey’s personal loan.

July - Gulf reportedly loans money to Lacey’s friend.

1993

Jan. - Lacey declared Gulf insolvent.

July - At a breakfast meeting with Gulf directors, Lacey resigns.

Oct. - Frederal government and pensioners force Gulf into bankruptcy.

1995

Jan. - Gulf’s North Idaho pensioners informed of reduction in medical benefits.

June - Bankruptcy reorganization expected to be complete and approved by courts. Taxpayers will be left with Gulf’s share of cleanup.

COMPANY CASH AND MARKETABLE SECURITIES

$178 million - 1988

$154 million - 1989

$92 million - 1990

$56 million - Mid 1991

$35 million - End 1991

$11 million - 1992

Bankrupt - 1993

Reorganization - 1995

Source: Staff research Staff graphic: Warren Huskey<

, DataTimes ILLUSTRATION: Graphic: Gulf’s plunge into bankruptcy