- 5 -
Government for cancellation, without the Mexican Government
spending any U.S. dollars, constituted a primary purpose of this
transaction. If the financial interests of the Mexican
Government would have been just as well-served (as the amici
curiae apparently contend) by the Mexican Government itself
purchasing for US$600,000 the US$1,200,000 Mexican Government
debt and then canceling that debt, perhaps the transaction could
have been so structured.
To the contrary, however, the transaction was structured so
that the US$1,200,000 Mexican Government debt would be canceled
without the Mexican Government using any of its limited supply of
U.S. dollars and also without any of the Mexican pesos that were
used in the transaction leaving Mexico. From the standpoint of
both petitioner and the Mexican Government, these two features or
benefits of the transaction, made possible by the additional
elements provided by petitioner as described above, shape the
form and substance of the transaction before us.
We therefore believe that it would be artificial to presume,
as petitioner and the amici curiae would have us do, that the
value of the Mex$1,736,694,000 (the currency consideration
received by petitioner or by Procesos, as petitioner's designee,
for participating in this transaction) equals petitioner's
US$634,000 cost of purchasing the US$1,200,000 Mexican Government
debt and transferring the debt to the Mexican Government. This
argument ignores that in reality the Mexican Government acquired
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011