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$975,153,806. We disagree. The investment bankers did not
propose to raise $975,153,806. Dean Witter proposed to use
subordinated notes to raise $325 million. Bear Stearns proposed
to raise $300 million ($100 million subordinated debt, $100
million stock sale, and $100 million convertible subordinated
debentures). Donaldson, Lufkin & Jenrette proposed to raise up
to $350 ($80 million from common stock, $100 million from
convertible debentures, and $170 million from subordinated debt).
The investment bankers' proposals relied on equity financing
which petitioners could not do.
Petitioners contend that the debt to equity ratios in their
loan agreements with the banks were not important because they
were waivable. We disagree. Even if a term in the written
agreements could be waived, that does not make that term
unimportant.
Petitioners contend that RBC, TDB, and FNBC would have lent
them $975,153,806. Petitioners rely on DeGroote's testimony that
he had good relations with those banks. DeGroote testified that
commercial lenders inundated LTL with offers to lend petitioners
funds and that RBC, TDB, and FNBC had banking relationships with
LTL. His general testimony on this point does not convince us
that they would have lent petitioners as much as LIIBV did.
Haworth testified that petitioners could have borrowed money
from commercial lenders based on petitioners' regular contacts
with LTL's banks. Rademacher and Jacobs testified that they
would have lent as much money to petitioners as LIIBV did. The
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