Class 7 Hypo1 - expect to be proposed before and voted on...

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[[NYCORP:2565908v15:4434W:09/29/08--10:13 p]] Class 7: Royal Palm Developments LBO wants, of course, a financing condition. LBO assures Frank that there is no risk of LBO’s financing not coming through. “It’s committed,” he says. LBO even shows Frank the current drafts of the financing commitment letters that his banks are negotiating with him to help get Frank comfortable. Frank wonders why LBO then needs the condition, but Bud explains that it is “a policy matter” for LBO, particularly in light of current financing market conditions. Trump would like a condition that all required approvals, including liquor license approval, be obtained before he’s required to close. Ideally, he’d like to have whatever time he thinks appropriate to charm the state politicians without being under too much pressure to close quickly. Trump is also concerned about potential new legislation, which is being promoted heavily by lobbyists for the (rest of the) casino industry and which those “in the know” generally
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Unformatted text preview: expect to be proposed before and voted on by the legislature within the next six months, that would prohibit all Internet gambling by New York residents. It is somewhat doubtful the proposal will pass, but it would certainly be a disaster for Trumps project if it did. Trump is also concerned about the risk that the Internet gambling law remains alive at the time the deal otherwise would have to close, though he suspects that the sellers would have a hard time accepting that condition. On the other hand, the sellers negotiated Trump into offering a nice premium and, well, Trump drives a hard bargain. Assignment : Groups A and B represent Royal Palm; Groups C and D represent LBO and Trump, respectively. Groups A and B prepare drafts of the conditions and termination provisions of the acquisition agreement. Groups C and D respond with a markup (Group C to respond to Group B; Group D to respond to Group A). Paired groups negotiate....
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