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excess of asset values over the purchase price which falls
outside a reasonable range of values as related to purchase
price, the conclusion that there was inurement will follow and no
further analysis will be necessary.
In respect of the first adjustment, the following figures
(in thousands of dollars rounded) are revealing:
Cash and Increase Book Value Increase
Date Treasury bills Over 9/30/81 Assets Over 9/30/81
9/30/81 $823 $6,092
9/30/82 1,538 $715 6,559 $467
3/31/83 2,206 1,383 7,090 998
4/30/83 2,499 1,676 7,237 1,145
It is apparent that between September 30, 1981, and the
May 8, 1983, closing date, there was an increase of approximately
$1.1 million in assets (or $1 million if one is guided by the
March 31, 1983, value reflected in the purchase and sale
agreement), assets as to which there can be no question as to
their values as of the pertinent dates and their liquidity at
those values. The significance of these increases is confirmed
when one takes into account that balance sheet liabilities (in
thousands of dollars rounded) remained relatively unchanged:
Date Amount
9/30/81 $1,502
9/30/82 1,831
3/31/83 1,702
4/30/83 1,712
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