[Federal Register Volume 59, Number 93 (Monday, May 16, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-11792]
[[Page Unknown]]
[Federal Register: May 16, 1994]
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SMALL BUSINESS ADMINISTRATION
[License No. 05/07-5083]
Polestar Capital, Inc.; Issuance of a Small Business Investment
Company License
On March 23, 1994, a notice was published in the Federal Register
(59 FR 13755) stating that an application has been filed by Polestar
Capital, Inc., 200 Randolph Drive, Chicago, Illinois 60601, with the
Small Business Administration (SBA) pursuant to Section 107.102 of the
Regulations governing small business investment companies (13 CFR
107.102 (1994)) for a Transfer of Ownership and Control and Capital
Reorganization of Amoco Venture Capital Company.
Interested parties were given until close of business April 22,
1994 to submit their comments to SBA. No comments were received.
Notice is hereby given that, pursuant to section 301(c) of the
Small Business Investment Act of 1958, as amended, after having
considered the application and all other pertinent information, SBA has
approved the Transfer of Ownership and Control and Capital
Reorganization of Polestar Capital, Inc., under the following terms and
conditions, effective April 29, 1994.
(1) At this time, subject to number two (2) below and current
regulations, your application does not address the 3 percent Preferred
Stock Buy Back Program or the Preferential Payment Distribution to
Amoco Corporation (``AMOCO'').
(2) No distributions, including the Preferential Payment
Distribution, could be made to any shareholder or Amoco without full
repayment of the accrued dividends outstanding owed to the Small
Business Administration (``SBA'') for your outstanding 3 percent
Preferred Stock. Provided that Polestar Capital, Inc. (``PCI'') is in
compliance with SBA regulations, after the payment of the accrued but
unpaid dividends owed to SBA, then PCI could make distributions to
other shareholders and to Amoco as long as PCI had the ability to make
additional distributions in compliance with all SBA regulations.
(3) Once the final regulations were completed for the Preferred
Stock Buy Back, PCI would be eligible to apply under the then current
existing regulations. PCI could not request terms or conditions that
were utilized in the pilot program, if such conditions have been
changed for the final program. Amoco Corporation has indicated that
they do not desire and would not apply for the 3 percent Preferred
Stock Buy Back Program prior to the actual change of ownership and
control. For the purposes of the 3 percent Preferred Stock Buy Back,
PCI would agree that it could not claim distressed status under the Buy
Back regulations.
(4) Any future sale or conversion of a controlling interest (50
percent or more of the common stock) of the common stock of PCI would
continue to be subordinated to the accrued but unpaid interest and
principal of the Small Business Administration's (``SBA'') outstanding
3 percent Preferred Stock, and would require under existing regulation
SBA's prior approval.
(Catalog of Federal Domestic Assistance Program No. 59.011, Small
Business Investment Companies)
Dated: May 9, 1994.
Robert D. Stillman,
Associate Administrator for Investment.
[FR Doc. 94-11792 Filed 5-13-94; 8:45 am]
BILLING CODE 8025-01-M
