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the debts to Manver by $11 million. MSI issued $3.5 million and
MDT issued $8 million in commercial paper to six entities--
Protravol; Attractours; Futureprom; Amsrott, N.V. (Amsrott);
Celin, N.V. (Celin); and Slider, N.V. (Slider)--to account for
the $11 million paid to Manver, even though none of the six
companies provided any of the funds to pay the Manver debt as the
funds originated from Manver.
The original $10 million that was transferred to Gatetown
from Dapy and Roundabout was returned to Dapy and Roundabout in
May and June 1988. The first tranche of commercial paper that
was issued December 22, 1987, was to mature on June 17, 1988. On
that day, $2.391 million was channeled through various entities
in order to retire the first tranche of commercial paper totaling
$10.5 million. At the same time, another tranche of commercial
paper totaling $10 million was issued.
As each tranche of funds matured, a new set of transactions
occurred that retired the old paper, issued new paper, and paid
amounts that were associated with the issuance of the paper, such
as Original Issue Discount interest and guarantee fees. The
commercial paper carried an interest rate of 1 percent over
London Interbank Offered Rate (LIBOR). The interest and
guarantee fees were transferred from the controlled entities
receiving the payments to the Spanish investors' Eurotor
companies in proportion to the Spanish investors' interests in
MTNV and MANV.
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