Battle over Hillblom estate nears end

After almost five years of fierce legal battle, the qualified heir claimants and the Larry L. Hillblom Foundation have finally agreed to settle the remaining assets of the Hillblom estate, leading to the closure of the lengthy heirship case.

Superior Court Judge Pro Tem Alexandro C. Castro is expected to approve today what the parties called the Global Settlement Agreement amounting to over $65 million which was a product of various meetings held in California, Hawaii and Guam. The agreement describes in detail how the assets, cash and non-cash, will be divided and provide payment for obligations of the estate.

Once Judge Castro gives his seal of approval on the agreement, the money will be distributed on May 11, 2000.

Based on the settlement agreement, the Foundation will receive $24.9 million. The four Hillblom children will receive the following:

• Jellian Cuartero, Filipino, 5, $11.6 million;

• Mercedita Feliciano, Filipino, 4, $11.9 million;

• Junior Larry Hillbroom, Palauan, 15, $11.3 million; and

• Nguyen Be Lory, Vietnamese, 5, $13 million.

The business tycoon died in a seaplane crash on May 21, 1995 near Anatahan Island. He had interest in airlines, hotels, banking and other businesses all over the world from the United States to Europe and Southeast Asia.

When he was still alive, Mr. Hillblom did not leave any will for his children but made a testament long before the plane accident, giving a huge chunk of the estate to the Hillblom charity foundation.

Mr. Hillblom was the “H” in DHL Worldwide, a courier service which he co-founded in 1969 with his two best friends, Adrian Dalsey and Robert Lynn.

“Everyone has decided that it is time for this case to end and divide up these assets and cash in accordance with the prior agreements,” according to lawyer Robert A. Julian.

Saying they want to achieve “everlasting peace” for the sake of the children, the lawyers urged Judge Castro to approve the settlement agreement as the legal battle has also become very expensive for the estate with legal fees ranging from $100,000 to $500,000 per child a month.

Total available cash left for the children and the Foundation after paying all the taxes and various expenses amounted to $65 million. But the estate received some $8.2 million in tax benefits, which was also divided among the four heir claimants.

Court documents showed that Hillblom’s assets amounted to over $400 million in cash and $114 million in unliquidated assets.

The four children received their first share of the Hillblom fortune in April 1999, when the court approved the distribution of some $7.5 million to each of the four children and $20 million to the California charity. In October 1999, the Superior Court in Saipan approved the distribution of another $200 million.