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3. LESI
GSX changed its name to LESI. LESI became an indirect
subsidiary of LWSI in October 1986. LESI was the holding company
for the hazardous waste services operating subsidiaries of the
LII group.
On April 11, 1989, LESI and International Technologies
Corp., an unrelated U.S. corporation, formed LESCAL. LESI owned
70 percent of LESCAL and International Technologies Corp. owned
30 percent. On March 31, 1993, LESI bought International
Technologies Corp.'s stock in LESCAL.
F. LTI's Centralized Cash Management Program (CCMP)
Before 1987, LTI had a program with its subsidiaries to
manage cash called the CCMP. The CCMP had the following
accounts. LTI had an account called a master concentration
account or first tier account. Transit, Tree, and LWSI, LTI's
subsidiaries one level below LTI, had second tier concentration
accounts. Regions of Transit, Tree, and LWSI had third tier
concentration accounts. Operating companies in those regions had
fourth tier concentration accounts.
The CCMP accounts operated as follows. At the end of each
day, each operating company netted the cash it received against
the cash it disbursed. The operating company netted the cash in
a general account. The operating company then transferred any
extra cash in the general account to the appropriate third tier
account. If there was a cash shortage in the operating company's
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