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relating to an advance on February 8, 1988, by LTL to LIIBV to
Transit:
1. LTL borrowed $45 million from TDB;
2. LTL lent the funds to Transit Ltd. at the prime rate;
3. Transit Ltd. contributed the funds to LIL for Class B
shares;
4. LIL advanced funds to LIIBV via ABN Bank (New York);
5. LIIBV advanced funds to Transit Ltd. at prime plus 2
percent;
6. Transit Ltd. paid down intercompany debt to LTI; and
7. LTI paid $45 million.
d. Advances to Transit
On November 10, 1986, Transit signed a demand note payable
to LTI for $43.8 million. Also on that day, the note was
assigned to LTL, then to Transit, then to LIL, and then to LIIBV.
Haworth and Cairns signed each assignment. The $43.8 million was
incorporated into a loan agreement dated "as of September 1,
1986".
Transit acquired stock and assets of 44 companies in the
transportation industry for $50,744,478 in the year ending August
1986, $20,736,304 in the year ending August 1987, and $71,573,421
in the year ending August 1988. Transit used $24,798,393 from
LIIBV for interest reinvestment loans.
e. Advances to LWSI LWSI used advances from LIIBV
as follows:15 $349,812,613 to buy GSX; $6.4
million to repay RBC loans; $60.9 million to
repurchase LII stock; and $43,553,907 to pay
interest to LIIBV (interest reinvestment loans).
15 LWSI transferred $29 million to its affiliate, Societe
Sanitaire, to buy preferred stock in Travelways, Ltd. However,
it is not clear whether it used the $29 million it borrowed for
that purpose.
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