While the transfer of these assets will result in a primarily non-cash, after-tax charge of approximately $42 to $48 million in the fourth quarter, the transfer of the franchise assets to CBHS will eliminate approximately $5 to $6 million per year in pre-tax losses related to franchise operations.
Magellan has also redeemed 80 percent of its common interest and all of its preferred interest in CBHS, leaving Magellan with a 10 percent common membership interest.
The restructuring of CBHS included the following transactions:
returned to CBHS all of the assets utilized by Magellan in
Magellan and CBHS terminated the franchise agreement under which
Magellan had provided franchise services to CBHS, and Magellan
released CBHS from all accrued and unpaid franchise fees.
of the preferred interest in CBHS, and a limited partnership
Magellan, CBHS, Crescent Real Estate and Crescent Operating
Magellan and CBHS modified and extended their existing
arrangement which designates CBHS as a preferred provider of