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to provide additional funds. Either way, the tender panel
manager had to have the cash prior to the maturity of the first
tranche to repay that tranche. Forsyth advised that C&L would
like a substantial part of the placement made to unrelated
parties but that related parties could be investors in the
program. Forsyth advised that the guarantors should not purchase
the commercial paper directly or indirectly. Forsyth also
advised that it would be better for a purchaser holding notes in
an expiring round not to purchase notes in the replacement round.
Forsyth inquired about how much cash the Spanish investors
could provide as part of the commercial paper arrangement. At
this time, the Spanish investors had $10 to $20 million in their
bank accounts. It was decided that $10 million cash would be
provided by the Spanish investors through their controlled
Netherlands Antilles corporations. MSI and MDT were to issue
commercial paper sufficient to borrow the $10 million, which
would be paid to Manver before December 1987. The remaining
$12.5 million would be financed by the issuance of promissory
notes to Manver. In December 1987, $5 million was transferred
from the J. Montaner-controlled entities, primarily Dapy, and
$5 million was transferred from the Santandreu-controlled
entities, primarily Roundabout, to Gatetown. On December 22,
1987, MSI and MDT issued negotiable commercial paper promissory
notes, in $500,000 increments, to five entities to finance the
$10-million payment. The five entities were companies controlled
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