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that the partnership redeem all or any portion of its partnership
interest provided that no such request may be made by a partner
before April 1, 1991, if such redemption would reduce the
partner's partnership interest to less than $10 million.
However, the partnership agreement stated that no such redemption
would be permitted if Merrill Lynch determined that the
redemption would cause a disorderly liquidation of the
partnership's assets.
On February 28, 1990, the Saba partners made capital
contributions as follows:
Percentage
Capital Contribution Interest
Skokie $1,000,000 .5
Brunswick 19,000,000 9.5
Sodbury 180,000,000 90.0
$200,000,000 100.0
Skokie made its capital contribution from the proceeds of its
loan from Brunswick. Sodbury made its capital contribution from
the proceeds of its loans from ABN-Willemstad. The partners'
capital contributions were deposited into Saba's bank account at
ABN-New York.
D. Miscellaneous Fees
On February 23, 1990, Saba executed a letter agreement with
N.V. Fides (Fides), an ABN affiliate, under which Fides agreed to
provide a variety of administrative services for Saba in exchange
for an annual fee of $25,000. On the same date, Saba and Fides
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