-46-
As contemplated, petitioner's blocked deposits totaling $12.5
million were converted on April 14, 1987, at the official exchange
rate of 23.616 cruzados to one U.S. dollar, into Cz$295,200,000.
MRC in turn transferred the cruzados to IFC in consideration for 50
percent of IFC's equity interest in PCC, some 32,524,650 shares.
IFC provided MRC a receipt acknowledging this payment.30 This
transaction extinguished the $12.5 million debt; moreover,
petitioner agreed to maintain its equity investment in Brazil for
12 years.
Also on April 14, 1987, IFC and MOIL entered into a
Repatriation Guarantee Agreement, whereby IFC guaranteed that in
the event MOIL sold the PCC stock and was unable to repatriate the
30 The receipt states, in relevant part, as follows:
IN THIS FORM, INTERNATIONAL FINANCE
CORPORATION ("IFC"), * * * acknowledges
receipt of Cz$ 295.200.000,00 (Two
hundred, ninety five million, two
hundred thousand cruzados), equivalent
to US$ 12,500,000 (twelve million five
hundred thousand dollars) as of this
date of April 14 at the exchange rate of
Cz$ 23,616 from MINNETONKA
REPRESENTACOES COMERCIAIS LTDA.
("MINNETONKA"), * * * for the sale to
the latter of 32,524,650 shares from the
capital stock of PAPEL E CELULOSE
CATARINENSE S.A., * * * of which shares
IFC is the legal owner, * * * for which
receipt IFC hereby grants MINNETONKA
total, general and irrevocable quittance
for said sale of shares.
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