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From 1982 through 1997, all of Central’s stock was owned by
Mr. and Mrs. Honbarrier and their children, Gary L. Honbarrier
and Linda Embler. During the same period, Central had only four
directors, consisting of Mr. and Mrs. Honbarrier and their two
children.
Merger of Colonial into Central
On December 31, 1993, Colonial merged into Central in
accordance with the laws of North Carolina. Central was the
surviving corporation. Prior to the merger, Mr. Odom requested
that Mr. Lynch research the income tax implications of a merger.
On November 5, 1993, 7 weeks before the merger, Mr. Odom made the
following handwritten notes:
ALH Oks merger of Col. & Central, payout to Cen.
shareholders
- if tax free
- need bus. purpose
On November 11, 1993, after researching the matter, Mr.
Lynch sent Mr. Odom a memorandum identifying the following
possible business reasons for the merger: (1) Obtaining
Colonial’s ICC operating rights to expand Central’s business; (2)
reducing and simplifying operating procedures and expenses by
utilizing Central’s existing staff and facilities; (3) reducing
administrative expenses due to projected increased revenue
without increasing overhead expenses; and (4) use of Colonial’s
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Last modified: May 25, 2011