- 12 -
III. Negotiations
A. CIG’s Initial Discussions With Norwest and NEFI
In June 1993, representatives from CIG (Mr. Trznadel, Mr.
Snyder, and Ms. Ortmann), Norwest (Mr. Vandermark), NEFI (Ms.
Grossman), and Peat Marwick met to discuss a cross-border equipment
leasing transaction involving a portfolio of IBM computer equipment
(ultimately, the sale-leaseback transaction involved herein). At
this meeting, representatives of CIG made a presentation from a
paper (entitled “Equipment Leasing Proposal” (the Proposal)), and
various flowcharts that outlined the elements and tax benefits of
a proposed cross-border equipment leasing transaction.
Following the June presentation by CIG, Ms. Grossman requested
additional information from Comdisco. On July 6, 1993, Ms. Ortmann
sent Ms. Grossman an economic analysis of a hypothetical sale-
leaseback transaction involving a $75 million portfolio of computer
equipment.3 On August 3, 1993, Ms. Ortmann provided Ms. Grossman
with sample documents (including a contract for sale of equipment,
lease, notes, security agreements, and a contract for sale of the
lease receivable) which could be used in connection with a proposed
cross-border equipment leasing transaction. Ms. Grossman gave
these documents to NEFI’s attorneys for their review. Ms. Grossman
also requested, by interoffice memo, that the articles of
3 The economic analysis of a $75 million portfolio shows
a cash investment by the 98-percent shareholder of $9,252,693 and
a pretax profit of 6.1 percent using an estimated residual value
on the lease termination date of $22,754,717.
Page: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 NextLast modified: May 25, 2011