Andantech L.L.C., Wells Fargo Equipment Finance, Inc. (f.k.a. Norwest Equipment Finance, Inc.), Tax Matters Partner, and Wells Fargo & Co., A Partner Other Than the Tax Matters Partner, et al. - Page 56




                                        - 37 -                                          
          loans.                                                                        
               Initially, the transaction which is the subject of this                  
          litigation was to involve Intared I (the entity formed by potential           
          Swiss investors Hans Humbel and Egon Riesterer).  As of September             
          23, 1993, Mr. Campbell was evaluating the transaction with Intared            
          I.  By September 25, 1993, however, the Swiss investors had pulled            
          out of the deal, and thereafter, Andantech, with Mr. Parmentier as            
          the member holding the largest interest, was to be the borrower.              
          On September 28, 1993 (at the time the leveraged sale-leaseback               
          transaction was scheduled to close), a UBS loan officer in New York           
          (David Bawden) refused to approve the loan to Andantech.15  Mr.               
          Bawden requested references as to Mr. Parmentier’s character.  Mr.            
          Campbell then contacted UBS’s leasing affiliate in Switzerland,               
          which vouched for Mr. Parmentier’s character.  On September 30,               
          1993, UBS made the bank loan by wire transferring $14,995,931 to              
          Comdisco on Andantech’s behalf in payment of the purchase price of            
          the equipment.                                                                
               The bank loan was for a term of 47 months; however, the Bank             
          Note contained a mandatory payment acceleration clause in the event           
          3 percent or more of the ownership interest in Andantech was                  
          transferred.  UBS anticipated that the bank loan would be repaid              
          within 3 months, inasmuch as previous loans made in similar                   


               15   UBS wired $14,995,931 to Comdisco on Sept. 28, 1993,                
          but the same amount was wired back from Comdisco to UBS on the                
          same day.                                                                     




Page:  Previous  27  28  29  30  31  32  33  34  35  36  37  38  39  40  41  42  43  44  45  46  Next

Last modified: May 25, 2011