GFY-example

GFY-example - ANALYSIS OF NAMEPROTECTED: NAME PROTECTED...

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ANALYSIS OF NAMEPROTECTED: NAME PROTECTED (NEWCO) was forrmed by and between NAME PROTECTED (a wholly-owned subsidiary of NAME PROTECTED, LP herinafter referred to as “INV”) and NAME PROTECTED, LLC pursuant to the provisions of the Limited Liability Company Agreement of NAME PROTECTED Associates, LP dated November 6, 1997 (the Agreement). NEWCO’s purpose is to acquire/ develop a portfolio of mid-level hotels and/ or investments in entities owning such properties. This memo documents our understanding of the application of the provisions of FASB Interpretation No. 46R, Consolidation of Variable Interest Entities (FIN 46 (R )) , to the investment NAME PROTECTED, LP (INV) has NEWCOested inNEWCO. BACKGROUND: INV contributed $5,321,000 in cash upon formation with a commitment to fund up to an additional $18,679,000 (pari passuwith the other member) for an 80% ownership interest in NEWCO. The other member, NAME PROTECTED LLC serves as the operating member and is responsible for carrying out the day to day operations and actions approved by the operating committee. Each member has 50% control of the management committee and accordingly the voting rights are not commensurate with the ownership (variable). Majority vote of the management committee is required to approve such actions as: sale or transfer of any or all of the company’s assets,
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GFY-example - ANALYSIS OF NAMEPROTECTED: NAME PROTECTED...

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