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1990, swap due to Brunswick's sale of the 3 LIBOR notes. This
swap was completely terminated on July 2, 1991, following SBC's
sale of the remaining Norinchukin LIBOR note.
On September 14, 1990, concurrent with the partial
redemption of Sodbury's partnership interest, Brunswick and
Merrill Lynch entered into a third swap. Brunswick used the swap
to hedge a substantial percentage of its interest in the
remaining Norinchukin LIBOR note held by Saba. This swap was
completely terminated on July 2, 1991, following SBC's sale of
the remaining Norinchukin LIBOR note.
VI. Otrabanda Investerings Partnership
A. Structure
On June 13, 1990, Brunswick, through Mayer, Brown & Platt,
requested that Merrill Lynch arrange a second partnership with a
structure slightly different from Saba. Brunswick requested that
the foundations (stichtings) own the stock of subsidiary #1 which
in turn would own the stock of subsidiary #2. Brunswick
requested that subsidiary #1 obtain a loan from ABN and use the
proceeds to capitalize subsidiary #2 with equity and that
subsidiary #2 act as the third partner in the new partnership.
On June 20, 1990, Brunswick and Merrill Lynch entered into a
letter agreement under which Merrill Lynch agreed to serve as
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