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February of highly rated PPNs, the sale of the PPNs in late March
for cash and installment notes, investment of the cash proceeds
in highly rated commercial paper, and Brunswick's gradual buy-
down of ABN's partnership interest. den Baas' credit proposal
stated that ABN would have the option to withdraw fully from the
partnership after January 1, 1991.
On February 20, 1990, ABN's North Atlantic Credit Committee
recommended approval of den Baas' credit proposal stating:
WE RECOMMEND APPROVAL. AS BRUNSWICK DOES NOT POSSESS
THE SAME HIGH CREDIT STANDING AS PREVIOUS DEALS, PLEASE
MAKE SURE WE CAN LIQUIDATE THE PORTFOLIO IF BRUNSWICK
IS UNABLE TO COME UP WITH THE CASH TO PAY US OUT BY
JANUARY 1991.
On February 23, 1990, ABN's Risk Management Department
granted approval for ABN to participate in the proposed
partnership on the condition that ABN would maintain the right to
liquidate the portfolio.
III. Saba Partnership
A. Sodbury Corporation
In The Netherlands, a foundation or stichting is a legal
entity that is managed and administered by a board. On January
18, 1990, ABN established two stichtings, Ronde Klip Foundation
(Ronde Klip) and Pietermaai Foundation (Pietermaai).
On January 18, 1990, Sodbury Corporation (Sodbury) was
incorporated in Curacao, Netherlands Antilles. On February 23,
1990, Sodbury and ABN Trust executed an agreement under which ABN
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