Free Notice (Other) - District Court of Federal Claims - federal

Case 1:95-cv-00524-GWM

Document 383-2

Filed 09/11/2007

Page 1 of 1

Homer J. Holland, Howard R. Ross, and First Bank v. The United States (No. 95524C)

PLAINTIFFS' LOST PROFITS (SAFSB) CLAIMS
Overview
CORC SAFSB Lost Value

($ in millions)

Dr. Holland

Plaintiffs' Counsel

$28.609
· Reflects the "entire [aftertax] economic benefit...of the purchase of SAFSB" (also referred to as the "value of the bargain purchase") less AMT and incremental interest expense to nobreach River Valley. $ 29.963 Bargain purchase 1 0.635 AMT liability (2.12%) 0.719 Interest expense $ 28.609

$44.930
or

2

· Reflects the reported taxable income of WCHI (and successors) from 1992 through 2004.

$35.000
or

· Reflects an estimate of the unrealized taxable gains embedded in SAFSB's loan portfolio at December 31, 1993. · Plaintiffs attribute this calculation to defendants expert, Dr. Griffin. · Reflects Dr. Holland's claim for the "entire [aftertax] economic benefit...of the purchase of SAFSB" (also referred to as the "value of the bargain purchase)."

$29.963

Notes: 1 Plaintiffs assert that "In the actual SAFSB acquisition, Western Capital's investors paid $10.381 million for net markedtomarket assets worth $40.344 million [i.e., a difference of $29.963 million]." (First Bank's Summary Judgment Motion dated September 21, 2005, p. 21 (emphasis and citation in original omitted)). 2 Plaintiff's calculation includes some simple arithmetic errors. Their calculation, once corrected, should be $44.84 million. Sources: * Plaintiff First Bank's Motion for Partial Summary Judgment dated September 21, 2005, pp. 17 23 * Corrected Second Supplemental Expert Report and Declaration of Dr. Homer J. Holland dated February 22, 2005, ¶¶ 6 9

IV1

Privileged and Confidential September 6, 2007