- 24 -24
Mr. den Baas discussed ABN's specified return and the liquidation
of ASA. Mr. den Baas provided AlliedSignal with a schedule
comparing Barber's and Dominguito's income allocations. The
schedule indicated that from November 22, 1991, through April 30,
1992, Barber's and Dominguito's income allocations exceeded ABN's
funding costs by $152,162. AlliedSignal prepared several
analyses regarding ABN's return. Some of these analyses included
a determination of what ABN's return would have been if
AlliedSignal had made a $5 million payment "up-front" and if all
of Dominguito's interest in ASA had been redeemed by May 1992.
Based upon these analyses, AlliedSignal suggested that ABN pay
AlliedSignal $225,741, plus the $152,162 set forth in ABN's
schedule. Ultimately, ABN agreed to pay AlliedSignal $315,000.
On May 1, 1992, ASA tendered the AlliedSignal Short-Term
Notes to AlliedSignal, in return for a payment of $435 million
plus accrued interest of $1,646,522. On the same day, ASA
purchased newly issued 30-year AlliedSignal notes (the
AlliedSignal Long-Term Notes). The AlliedSignal Long-Term Notes
had a $480 million total notional principal amount and a 9.23
percent interest rate. On May 20, 1992, ASA exchanged the
AlliedSignal Long-Term Notes for all the stock of ASA
Investments, Inc., a wholly owned subsidiary of ASA, which was
formed to participate in the liquidation of ASA.
On May 28, 1992, ASIC was liquidated into AlliedSignal and
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