- 20 -                                         
          debentures.  For example, under section 5.02 (supra pp. 9-10),               
          minimum payments to a sinking fund are to be computed by                     
          reference to outstanding debentures less converted debentures.               
          Sections 5.05 and 5.07 (supra p. 10) contain provisions for                  
          adjustment of the sinking fund and calculation of payment for                
          redemption to take converted debentures into account.  These                 
          provisions do no more than modify the need for a sinking fund                
          with respect to converted debentures that would be in the hands              
          of RMECC, the entity obligated on the debenture, or Metals, its              
          parent, neither of whom would need to have funds set aside to pay            
          themselves.  Elimination of converted debentures from the sinking            
          fund does no more than reflect the realities of the relationship             
          between RMECC and Metals and fails to counteract the other                   
          indications that the converted debentures were to survive the                
          exchange.  Nor are we persuaded that Metals was attempting to                
          change the terms of the debentures by the correspondence with                
          Chemical Bank in New York relating to its status as conversion               
          agent instead of as trustee, see supra p. 15.  In our judgment,              
          this correspondence reflects a careful effort to comply with, not            
          modify, the terms of the indenture.                                          
               The terms of the indenture herein are substantially similar             
          to those of the indenture involved in Husky Oil Co. v.                       
          Commissioner, 83 T.C. 717 (1984), affd. sub nom. Marathon Oil Co.            
          v. Commissioner, 838 F.2d 1114 (10th Cir. 1987), where we                    
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