- 7 -
FURTHER
RESOLVED:
That any Vice President of this Company is hereby
authorized and directed to execute and deliver to
Thomas K. Scallen a check in the amount of
$150,000 in full consideration of the extension of
said guaranty upon obtaining the consent of
Natwest to such payment.
At some point in or about 1988, Natwest made loans to IBC in
the aggregate principal amount of $25 million. On June 1, 1988,
petitioner guaranteed up to $17.5 million of those loans. The
guaranty states that “It is in the best interests of the
undersigned [i.e., petitioner] that the Borrower, which is
directly owned in part by the undersigned, be able to obtain the
loans provided for in the Loan Agreement”. The board of
directors for IBC determined that $175,000 was “a reasonable fee”
for petitioner’s guaranty and authorized the payment of that
amount to petitioner.
On May 25, 1989, IBC Amusement Rides, Inc.,6 executed a term
note of $1.5 million in favor of Fantasy Rides, Inc., pursuant to
a purchase agreement by and among a number of parties including
IBC and Charles R. Wood, one of IBC’s directors.7 On May 26,
1989, petitioner and IBC executed a guaranty in favor of Fantasy
6IBC Amusement Rides, Inc., was a wholly owned subsidiary of
IBC.
7The purchase agreement and note related to the acquisition
of Charles R. Wood’s interests in Great Escape and Fantasy
Island.
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