Santa Monica Pictures, LLC, Perry Lerner, Tax Matters Partner - Page 141

                                        -219-                                         
               2.  Relationship Between the Parties                                   
               We are not persuaded that Mr. Jouannet’s interests, and                
          those of CDR, were necessarily adverse to the interests of the              
          Ackerman group and SMP, at least insofar as the tax                         
          characterization of the transaction was concerned.  As previously           
          discussed, Mr. Jouannet’s job was to realize whatever value he              
          could in the Credit Lyonnais group’s “bad” investments and loans,           
          as quickly as possible.  Whatever value might be realized from              
          these “bad” investments and loans depended in large part on                 
          structuring a deal whereby the potential buyer could exploit the            
          associated tax attributes.  At least to this degree, Mr.                    
          Jouannet’s and Mr. Lerner’s interests coincided.                            
          3.  Ackerman Group’s Exploitation of Tax Attributes                         
               The Corona transaction and the sales of receivables to                 
          TroMetro clearly denote the long-term objectives of the Ackerman            
          group in entering into the transaction with CDR.  The sales of              
          the receivables to Mr. Lerner’s friend, colleague, and business             
          associate, Mr. van Merkensteijn, were an essential component to             
          realizing the built-in losses in the receivables.164  The sales of          

               164 In connection with his purchase of the receivables from            
          SMP in 1997 and 1998, Mr. van Merkensteijn paid a total amount of           
          approximately $1 million to SMP, either as cash downpayments or             
          as principal and interest payments on his notes to SMP.  In                 
          connection with his purchase of the $79 million receivable, Mr.             
          van Merkensteijn paid approximately $400,000 ($120,000 as a cash            
          down payment and $287,791 as principal and interest on his note).           
          Besides the sales of the receivables, the Ackerman group had                
                                                             (continued...)           





Page:  Previous  209  210  211  212  213  214  215  216  217  218  219  220  221  222  223  224  225  226  227  228  Next

Last modified: May 25, 2011