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M. Downgrade of Brunswick’s Credit Rating
On June 6, 1991, Moody’s announced that it was placing
Brunswick's debt ratings under review. On June 19, 1991, Moody’s
announced that it was downgrading Brunswick’s long-term debt
rating from Baa1 to Baa2.
N. Dissolution of Saba
During a June 21, 1991, Saba partnership meeting, Brunswick
informed the partnership that, due to a recent downgrading of
Brunswick’s credit rating, Brunswick would have to liquidate its
investment in Saba in order to reduce the amount of its
outstanding commercial paper and other borrowings. On June 21,
1991, Saba transferred $1,161,928 to SBC as additional paid-in
capital. The following schedule lists SBC's assets as reflected
on its June 21, 1991 unaudited financial statement:
Item Amount
Cash $1,161,928
Time deposits 2,922,499
Norinchukin LIBOR Note (as valued by Merrill Lynch) 7,760,000
Brunswick commercial paper 49,787,895
Non-Brunswick commercial paper 26,696,262
Accrued interest on Brunswick commercial paper 73,757
Accrued interest on non-Brunswick commercial paper 54,744
Accrued interest from time deposits 931
Total $88,458,016
On June 21, 1991, Saba was dissolved. For purposes of
Saba’s audited and unaudited financial statements, Brunswick was
allocated $1,101,381, Skokie was allocated $10,104, and Sodbury
was allocated $123,499 of Saba's income from April 1, 1991
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