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Sublease. This $25 million (taking into account the time value
of money) apparently corresponded generally to approximately 90
percent of the total lease payments to be paid during the
remaining 6-year term of the Brussels Leaseback.
By prearrangement, with receipt from ABN of the $25 million
in prepaid lease payments, the $25 million was transferred into a
trust fund (the Trust Fund) to secure Pierson’s right to receive
the lease payments due under the remaining 6-year term of the
Brussels Leaseback.
Under the December 12, 1991, assignment to Atrium of ABN’s
interest in the Brussels Leaseback, even though Pierson was
secured for the lease payments due from Atrium under the Brussels
Leaseback, Atrium was stated to be nominally obligated on the
lease payments due thereunder (which as stated were to be paid
directly to Pierson as lender). Pierson, however, had no
recourse to Atrium on the Pierson loan. Pierson’s recourse
thereon was limited to the equipment covered by the Brussels
Leaseback and to the $25 million that was transferred into the
Trust Fund.
As creditor on Brussels Airport’s purchase of the equipment
from ABN and as the entity to whom the ABN end-user lease
payments ultimately were due to be paid under the Brussels
Leaseback, the beneficiary of the Trust Fund was Pierson. Even
though Pierson, however, was the beneficiary of the Trust Fund
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