Santa Monica Pictures, LLC, Perry Lerner, Tax Matters Partner - Page 136

                                        -214-                                         
               Petitioner points to the negotiations between CDR and the              
          Ackerman group, in which CDR sought to retain whatever value                
          might be realized in the Carolco securities.  Petitioner contends           
          that these negotiations indicate that the Carolco securities had            
          some value.  It is unclear from the record, however, precisely              
          what CDR’s intentions were with respect to the Carolco                      
          securities.  Clearly, at the time these negotiations were                   
          ongoing, it was highly unlikely that the banks (through SMHC)               
          would recover anything on the Carolco securities.  Any recovery             
          at that time would have been highly speculative and contingent on           
          events that were not foreseeable.  Even if we were to assume that           
          CDR’s interest indicates some value in the Carolco securities, we           
          have no clear indication of what that value might be.                       
               Finally, any value that might have been realized on the                
          Carolco securities would not go to the Ackerman group.  Indeed,             
          Mr. Lerner testified that the Ackerman group evaluated the                  
          Carolco securities, but they were concerned only with the                   
          potential negative aspects of those securities; i.e.,                       
          liabilities.  He testified that the Ackerman group had very                 
          little control over the Carolco securities since Carolco was “in            
          bankruptcy proceedings, number one, and, number two, the ultimate           
          value would accrue to the benefit of Credit Lyonnais, which was             
          fine with us.”  Mr. Lerner testified that because of the various            
          ways in which CDR laced any realizable value in the Carolco                 






Page:  Previous  204  205  206  207  208  209  210  211  212  213  214  215  216  217  218  219  220  221  222  223  Next

Last modified: May 25, 2011