| Deal Description | Fruehauf Trailer Company used the net proceeds from this transaction to redeem all of its outstanding 10-year 4 1/2% sinking fund debenture notes, due April 1, 1947. The balance of the proceeds was used for general corporate purposes and for working capital, including the purchase of raw materials, the purchase of new equipment, the payment of wages and salaries, the expansion of the company's plants, the financing of its accounts and notes receivable, and for such other general purposes. It was contemplated that a separate corporation (to be 100% owned by the company) may have been formed for the purpose of facilitating the financing of installment notes receivable of the company and subsidiaries. A portion of the proceeds may have been used for the payment of installments, as they became due, on the purchase of the Kansas City, Kansas, property or on the purchase by the Fruehauf Trailer Company of California of land and a building located in the city of Vernon, California, or to make payments on either or both of the mortgages given by Fruehauf Realty Corporation on December 14, 1939, to National Bank of Detroit on the St. Paul and Buffalo branch properties, respectively. |
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