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the end of the master leases. For example, Mr. Eli Gerver,
one of the unitholders, testified as follows:
Our expectation of profit came from two
sources: the rents which might achieve, or our
share of the rents that might be achieved after
the--looking at that chart, that 60-month lease
in the case of the Burroughs equipment, the 37-
month in the First Computer, and the--whatever
the other one is in the case of the foreign
equipment, at the end of that, the possibility
of renting to somebody else after that period
time, or if that--and in addition to that, the
residual, the ultimate opportunity to sell the
equipment itself.
The trustee, Mr. Alan Bernikow, expressed the same idea as
follows:
The only way you can make money in this
deal, when you go through the numbers, and we
went through the numbers pretty quickly, is to
recognize that the re-leasing program was very
important, the value at the end was very
important, because, if you don't have those
pieces, all you have is taxes, that you pay in
early years and you get back--you get in the
early years and you pay back in the later years.
* * * * * * *
We had gone through a due diligence and,
once these numbers hit you, as you go through
this package and recognize that if you believe
in--in the rental incomes and the residual value,
then it became a, what I would call--for the
deals we saw at the time, a very good deal.
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