- 10 -
transfers to CV, neither CVI nor CV intended that any portion of
the funds transferred would be repaid to CVI.
By February 23, 1983, CV's and CVI's tax and accounting
departments had received the information necessary to compute the
outstanding balance of CV's qualified export receivables and the
amount of unreimbursed export promotion expenses as of January
31, 1983, and to prepare the documents memorializing the
transactions. On or about that date, an agreement entitled
"Purchase of Qualified Accounts Receivable Agreement", dated
effective as of January 31, 1983, provided for CVI's purchase
from CV of qualified export receivables in the aggregate face
amount of $24,027,770 at a discount of $1,541,782, resulting in a
purchase price of $22,485,988. All of the receivables purchased
thereby were qualified export assets within the meaning of
section 993(b). The amount CVI owed CV as expense reimbursements
under the export promotion agreement was $2,570,631, and the
amount of accrued State tax CVI owed CV was $228. A portion of
the funds CVI transferred to CV on January 31, 1983, was applied
to reimburse CV for the expenses and taxes.
Also on or about February 23, 1983, an "Action of Directors
In Lieu of a Meeting" was signed by the directors of CVI in which
it was voted as of January 31, 1983, to pay CV a dividend of
$13,690,561, the difference between (1) the amount of funds CVI
wired to CV on January 31, 1983 (viz, $38,747,408), and (2) the
sum of (a) the aggregate purchase price of the receivables
Page: 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