- 26 - letter of credit. In addition, in 1990, NITCO loaned BMCT $500,000 to use as a downpayment on BMCT's purchase of the cellular telephone license and other assets. On or about April 22, 1991, NITCO loaned BMCT another $3.1 million, so that the principal amount of NITCO's outstanding loans to BMCT totaled in excess of $3.6 million. With this additional $3.1 million loan from NITCO, BMCT was then able to conclude its purchase of the cable telephone license and other assets from WKBN on April 22, 1991.3 As a result, the above letter of credit issued by the local Indiana bank was canceled. At about the time of its April 22, 1991, acquisition of the Washington rural statistical area number eight cellular telephone business, BMCT arranged to borrow another $2.8 million from an unrelated third party, to finance further construction of the Washington cellular telephone system. To help BMCT obtain the $2.8 million loan from this third party, NITCO agreed to subordinate its prior loans to BMCT to the third party's loan. 3An explanatory note to the Dec. 31, 1991, financial statements of BMCT, L.P., the limited partnership that BMCT, FiberComm, and NITCO subsequently formed, reflects that the $3,615,771 purchase price paid by BMCT was allocated to the license and other assets that were acquired as follows: Land and buildings $151,143 Cellular license 2,217,265 Equipment 147,363 Warranties 500,000 Consulting agreement 100,000 Noncompete agreement 500,000 Total $3,615,771Page: Previous 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Next
Last modified: May 25, 2011