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1991 attributable to SBC's sale of the remaining Norinchukin
LIBOR note. Brunswick reported a loss of $719,046 on its audited
and unaudited financial statements attributable to the sale of
the remaining Norinchukin LIBOR note. Brunswick charged the
$719,046 loss to the portion of Brunswick's Accrued Disposition
Costs reserve account allocated to partnership activity as part
of a $758,213 entry.
Q. Termination of Chase Private Placement Notes
Between June 1990 and August 1990, Merrill Lynch exercised
its option under a side agreement with Fuji and purchased $40
million of the $100 million principal amount of Chase PPNs that
Fuji was holding. On February 25, 1991, Fuji elected to exercise
the put option with respect to the remaining $60 million
principal amount of the Chase PPNs. On April 17, 1991,
Norinchukin elected to exercise the put option with respect to
the $100 million principal amount of the Chase PPNs that it held.
V. Saba-Related Swaps
A. Fuji and Norinchukin Swaps
Merrill Lynch offered Fuji and Norinchukin structured
transactions to be implemented in conjunction with their
agreement to purchase the Chase PPNs from Saba for cash and LIBOR
notes. In financial terminology, a "structured transaction" is
one that combines two or more financial instruments or
derivatives. Most structured transactions, like those in this
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