- 33 -
leases. Accordingly, it is an opportune time to sell
this business to an appropriate purchaser.
The written summary also informed the board of directors that
because Merrill Parent did not intend to withdraw from the
“Lending Activities” aspect of the business, Merrill Parent “will
first remove the assets and operations related to the businesses
we wish to retain” and will “transfer all of the subsidiaries of
ML Capital Resources elsewhere within our Corporate structure” in
three steps before ML Capital Resources’ stock was sold: (1) ML
Capital Resources had already sold ML Interfunding’s stock to ML
Asset Management for its net book value of approximately $160
million; (2) ML Capital Resources had already sold the stock of
certain of its subsidiaries to ML Realty Inc. for approximately
$50 million; and (3) ML Capital Resources will declare a $459
million dividend to its parent company, Merrill Lynch Consumer
Markets Holdings, Inc. (Consumer Markets), consisting of cash
received from ML Asset Management and ML Realty, existing cash
balances, the stock of the remaining subsidiaries, receivables,
and liabilities. The board was informed that after these
transfers were completed, ML Capital Resources “will have equity
of approximately $40 million” and “we will be in a position to
sell” ML Capital Resources’ stock.
The presentation identified “a joint venture between BCE
Development, Inc., a wholly owned U.S. subsidiary of Bell Canada
and GATX Leasing Corporation, a wholly owned subsidiary of GATX
Page: Previous 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 NextLast modified: May 25, 2011