- 5 -
(Delcom Antilles) in exchange for common shares of stock in
Delcom Antilles, and Delcom Antilles purportedly contributed $14
million to Del Investments Netherlands B.V. (Del Netherlands) in
exchange for common shares of stock in Del Netherlands. Del
Netherlands also executed a written guaranty that guaranteed
repayment of the $14 million Royal Bank loan.
Del Netherlands maintained a small office in Barbados with
one part-time officer who did not have any substantive duties or
responsibilities. Other than a few purported loans to members of
the affiliated group of corporations, Del Netherlands conducted
minimal business activity and had negligible assets and
consequently had no independent credit standing outside the
affiliated group of corporations.
On July 19, 1990, as an integral part of and dependent upon
the above transactions that occurred on July 18, 1990, Del
Netherlands purportedly lent $14 million to Del Commercial. This
purported loan was reflected by a demand promissory note of Del
Commercial in favor of Del Netherlands with stated interest at a
specified bank prime interest rate plus 1� percent per annum,
payable in 20 quarterly installments and due in full on July 15,
2015.2 As part of this transaction, a security agreement and a
2 Del Commercial’s promissory note indicates that some
interest was to be paid monthly.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011