Target company owed money to parent company. Target entered into agreement with parent whereby it agreed repayment schedule for some of the debt and granted security over its assets; in return, parent wrote off rest of the debt. On same day, purchaser bought target company. Was later argued that security agreement was financial assistance to purchaser. Held:
· As matter of commercial reality, security agreement was price target company had to pay for obtaining a reduction in its debt
· Thus was not financial assistance.