Flint Industries, Inc. and Subsidiaries - Page 8




                                        - 8 -                                         
          interest thereon totaled $1,382,965.  G�nther also owed Actium              
          $4,942,343 under the terms of its lease.10                                  
          VI. Petitioner’s Efforts To Sell G�nther During 1987-1990                   
               In 1987, petitioner decided to focus on its core businesses            
          and began efforts to sell G�nther and its other electronics                 
          subsidiaries.  Petitioner engaged investment bankers in the                 
          United States and in Germany to find potential buyers, and the              
          bankers endeavored to do so during 1988, 1989, and 1990.  As part           
          of the sales effort, petitioner and its agents contacted hundreds           
          of potential purchasers, and serious discussions were held with             
          more than 10 companies.                                                     
               In 1990, petitioner negotiated a letter of intent with a               
          potential purchaser, AMETEK, to sell G�nther for DM 11 million.             
          The consideration included Flint's release from its guaranties of           
          G�nther's bank loans.  In late 1990, however, AMETEK withdrew its           
          letter of intent for undisclosed reasons while conducting its due           
          diligence investigation.  This withdrawal coincided with rising             
          oil prices during the Gulf War and a general downturn in the                
          European auto industry, during which the electronics and                    
          automotive industries suffered setbacks.                                    






               10G�nther’s liabilities were stated in deutsche marks.  The            
          amounts in this paragraph have been converted to U.S. dollars               
          using an exchange rate of .6025.                                            




Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011