Donald N. and Rosemarie F. Merino - Page 17

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                    * * * [I]f somebody else had had a machine that                   
               did 1- to 2-pound low density polyethylene foam, you                   
               would have seen an article in one of the, you know,                    
               whatever, Modern Plastics, or Technology, whatever.                    
          Petitioner stated that he was familiar with the Foremost                    
          Densilator, Regenolux, Buss-Condux Plastcompactor, and Cumberland           
          Granulator.  He attended a number of plastics shows and "pretty             
          much all those companies advertised their goods to" Celanese.               
          Also, Celanese had a technical laboratory where it "had pretty              
          much just about every plastics machine, grinder, [and] piece of             
          equipment that you can imagine to test for their customers",                
          including "basically" all the machines mentioned.  Petitioner               
          asserted that he questioned the testing facility personnel about            
          PI's reputation, the Sentinel EPE recycler, and other machines.             
               Petitioner used the projections in the Northeast offering              
          memorandum to run "a series of sort of back of the envelope                 
          calculations to see whether or not the business made any sense              
          from an economic standpoint."  He described the Northeast                   
          transaction as "basically a closed loop deal", which "is very               
          important to the economics of this".  Petitioner analyzed the               
          economics from both a full equity basis and a cash basis.  In so            
          doing, he did not give any consideration to the manufacturing               
          costs of the recycler.  Petitioner explained:                               
                    Manufacturing costs, per se, of this particular                   
               item is only a small part of the economics.  In this                   
               particular case, I didn't really think it had much                     
               relevance to the decision.                                             






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