Cerullo Gives Up His Interest in Religious Theme Park

Televangelist Morris Cerullo of San Diego is no longer part owner of the Christian retreat built by Jim Bakker, his partners said.

Morris Cerullo World Evangelism Investments Inc. “has divested its entire equity interest in New Heritage USA Corp.,” said a statement released Tuesday night by New Heritage President Yet-King Loy.

Neither Loy nor Cerullo could be reached for comment.

The financial terms of the agreement between Cerullo, who owned 49% of the retreat, and the partners are confidential, the statement said.

Tuesday’s agreement ends nearly a year of fighting between the majority owners and Cerullo, who borrowed money from the partners to buy his share of the park.

Cerullo put up his World Evangelism Center in San Diego to cover the $8.4-million loan. The money was due in December. The partners did not grant Cerullo a loan extension, but neither side would say what became of it.

The Charlotte (N.C.) Observer has quoted unidentified sources as saying the park could reopen as early as this summer.

Loy said he plans to invite ministers from several Christian denominations to sit on a New Heritage Christian Council “to oversee the spiritual affairs and programs” at the park.

He said New Heritage will not receive donations from the public.

Cerullo and his partners bought the theme park in December, 1990, from the U.S. Bankruptcy Court for $49 million. He borrowed $8.4 million from a subsidiary company his partners owned to finance his minority share.

By March, the majority partners sued Cerullo for selling discount cards for the hotels and other New Heritage attractions.

They sued him again a few months later, saying he solicited money for repairs at New Heritage. They said they were making the repairs with their own money and did not want to accept contributions to the ministry.

On Jan. 9, the U.S. District Court accepted a plan to settle the first suit. The second one was scheduled to go to trial Monday.

The majority owners are all partners or shareholders in a Malaysian conglomerate, Malayan United Industries.

Tuesday’s statement lists the current shareholders as Seraphim Investments Ltd., MUI International Limited, MUI Hong Kong Limited and MUI Investments (Canada) Limited. Two new ones listed are Jobson Enterprise Ltd and Alinna Investments Ltd.