McNall Faces Creditors, Declines Questioning : Hockey: Former King owner cites Fifth Amendment right in regard to inquiries.

King President Bruce P. McNall met Friday with his creditors for the first time since entering bankruptcy proceedings in May but declined to shed light on his finances because of an ongoing criminal investigation into his banking practices.

A significant portion of the two-hour hearing, which was held to allow creditors to ask McNall questions, included inquiries as to whether McNall has held or continues to hold assets in foreign countries such as Switzerland or Liechtenstein.

McNall repeatedly declined to answer questions from the bankruptcy trustee attorney, Leonard L. Gumport, and French bank Credit Lyonnais attorney Robert Meyer, asserting his Fifth Amendment right.

As previously reported by The Times, McNall has agreed to plead guilty to four criminal counts stemming from a federal bank fraud investigation. Sources say the plea probably will be formally entered no earlier than October because federal prosecutors are busy completing plea agreements from other McNall business associates.

The ongoing federal investigation precluded McNall from answering questions about his financial history and topics such as bank accounts and wire transfers. McNall is known to have had Swiss bank accounts in the past when he made frequent trips to Switzerland as part of his international coin businesses. Gumport on Friday questioned McNall about documents showing a wire transfer of funds totaling $1 million from an account at First Los Angeles Bank to an account at Union Bank of Switzerland in September of 1993. The transaction was authorized by three former McNall employees.

The line of questions over European funds seemed to annoy McNall’s attorneys. McNall’s criminal attorney, Tom Pollack, said after the hearing that R. Todd Neilson, the trustee, is being given access to all McNall records requested.

Pollack accused Meyer of “trying to embarrass Bruce with his questions” about the foreign bank accounts and a Las Vegas trip in May. Meyer asked McNall whether he gambled or had a line of casino credit.

Meyer said: “We’re not into trying embarrass anybody. The only concern is finding out Mr. McNall’s assets and liabilities and how he has spent his money in the past. If there are bank accounts overseas--which they seem to want to guard with the Fifth Amendment--we want to know about them.”

Credit Lyonnais, which financed McNall’s ill-fated venture into movie producing and claims it is owed about $120 million, has been the most aggressive creditor. In May, the bank publicly accused McNall of defrauding the bank--including offering as collateral assets pledged to another bank--on the eve of McNall’s sale of 72% of the Kings to investors Jeffrey P. Sudikoff and Joseph M. Cohen. McNall’s lawyers have denied those accusations.

Separately, McNall’s lawyers are locked in a dispute with Neilson over control of a special creditors’ trust set up before he entered bankruptcy proceedings, one designed to disperse funds.

The complicated trust contains a lien on McNall assets formerly held by Bank of America, which was his primary bank before he sold a majority interest of the Kings. One reason the issue of control is considered important is that whoever controls the trust would ultimately control the fate of McNall’s remaining 28% stake in the Kings, and would have the power to sell it at some point.