Aircraft Purchase Agreement between CBL & Associates Management, Inc. and 100 SC Partners Limited Partnership (June 1, 2011)
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Summary
CBL & Associates Management, Inc., a subsidiary of CBL & Associates Properties, Inc., purchased a 2001 Cessna Citation Excel jet from 100 SC Partners Limited Partnership, an entity controlled by the company's Chairman, Charles B. Lebovitz. The transaction, approved by the company's board, involved acquiring all beneficial interests in a trust holding the aircraft, for approximately $2.7 million based on an independent appraisal. The Management Company also agreed to pay about $1.3 million for engine overhauls. The deal transferred full ownership and operational control of the aircraft to the Management Company.
EX-10.24 13 exhibit1024.htm EXHIBIT 10.24 exhibit1024.htm
Exhibit 10.24
Narrative Summary of Mateial Terms of Aircraft Purchase Effective June 1, 2011
Description of Material Terms of Aircraft Purchase
On June 1, 2011, pursuant to terms previously approved by the Board of Directors of CBL & Associates Properties, Inc. (the “Company”) on May 2, 2011 (including approval by unanimous vote of the Company’s independent, non-employee directors), CBL & Associates Management, Inc., a Delaware corporation and a wholly owned subsidiary of the Company (the “Management Company”) acquired beneficial ownership of a 2001 Cessna Citation Excel jet aircraft from 100 SC Partners Limited Partnership, an entity controlled by Charles B. Lebovitz, Chairman of the Board of the Company. In order to streamline compliance with certain FAA regulatory filing requirements, the transaction was structured as an acquisition by the Management Company of 100% of the beneficial interests of a trust of which 560, Inc., a Tennessee corporation wholly owned by Charles B. Lebovitz, serves as trustee, which resulted in the Management Company acquiring 100% of the beneficial ownership as well as all operational control, possession, command and control with respect to the aircraft.
Under the terms of the transaction, which were based on the current fair market value of the aircraft as established by an independent appraisal, the Management Company paid cash consideration of approximately $2.7 million for the aircraft. The Management Company also will be responsible for overhauling the aircraft’s engines at a cost of approximately $1.3 million.
