- 7 - to F & G Corp. was paid in cash with the remainder financed through notes. These notes provided that 10 percent of the notes were recourse but that the recourse portion of the notes was only due after the nonrecourse portion, 90 percent, was paid in full. All of the monthly payments required among the entities in the above transactions offset each other. These transactions were done simultaneously. Although the recyclers were sold and leased for the above amounts under the structure of simultaneous transactions, the fair market value of a Sentinel EPE recycler in 1981 was not in excess of $50,000. PI allegedly sublicensed the recyclers to entities that would use them to recycle plastic scrap. The sublicense agreements provided that the end-users would transfer to PI 100 percent of the recycled scrap in exchange for a payment from FMEC Corp. based on the quality and amount of recycled scrap. The six Sentinel EPE recyclers purportedly leased by Clearwater were used infrequently and often were not in use at all. PI failed promptly to pick up the scrap and at times, did not pay the end-user for the scrap that it did pick up. Also, PI sometimes failed promptly to reclaim the machines that were rejected by prospective end-users. One of the six recyclers bought by Clearwater, for example, was placed with four different end-users in 4 years. The first end-user refused to accept delivery of the recycler. The second end-user found the recycler to be too costly and noisy. PI took 6 months to pick up thePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011