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LWSI bought stock and assets in 31 companies in the solid
waste services industry for $5,384,708 in the year ending August
1986, $373,534,605 in the year ending August 1987, and
$71,837,698 in the year ending August 1988, largely with advances
from LIIBV.
f. Financing the LII Stock Repurchase
The public held 21 to 24 percent of LII's stock until
December 16, 1987. In December 1987, LII began to buy those
publicly held shares through a tender offer totaling about $93
million ($22 per share). Ferrill, a director of LII from 1982 to
1987, convinced DeGroote to increase the repurchase price for LII
stock from $17-18 per share to $22 per share. The trading price
was $15.50 per share on November 9, 1987. LII completed the
repurchase on December 16, 1987. LII became wholly owned by
members of the LTL group.
On December 15, 1987, LTI signed a loan agreement with LIIBV
which had the same terms as those in LIIBV's May 27 and July 7,
1987, agreements with Transit, LWSI, and Tree. On December 16,
1987, LTI used a $60.9 million advance from LIIBV to pay for LII
stock that LII had repurchased from the public. On December 16,
1987, LWSI assumed LTI's obligations to LIIBV on the $60.9
million loan.
g. Financing the Purchase of Monroe
LAC borrowed $20 million from LIIBV pursuant to a loan
agreement dated May 27, 1987. LAC used the proceeds of the loan
to buy Monroe ($16 million) and to refinance third-party loans
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