Summary
This 8-K filing from Marriott International, Inc. reports on an amendment to a synthetic fuel facility agreement. Specifically, on June 30, 2005, Marriott entered into a Fifth Amendment Agreement regarding Synthetic American Fuel Enterprises II, LLC. This amendment grants Marriott's synthetic fuel partner the option to have Marriott redeem its approximately 50 percent ownership interest in three synthetic fuel facilities. The redemption can occur on either November 30, 2005, or December 31, 2005. Additionally, the filing notes that as of June 1, 2005, the partner's share of tax credits from these facilities has reverted to approximately 50 percent. Investors should note that this amendment introduces a potential future cash outflow or operational change for Marriott related to these synthetic fuel assets. The full details of the agreement are available as an exhibit to this report.
Key Highlights
- 1Marriott International entered into a Fifth Amendment Agreement related to its synthetic fuel joint venture, Synthetic American Fuel Enterprises II, LLC, on June 30, 2005.
- 2The amendment grants Marriott's synthetic fuel partner an option to have Marriott redeem its 50% ownership interest in three synthetic fuel facilities.
- 3The redemption option can be exercised on either November 30, 2005, or December 31, 2005.
- 4Effective June 1, 2005, the partner's share of tax credits from these facilities has returned to approximately 50%.
- 5This event could lead to a future cash outflow for Marriott if the partner exercises its redemption option.
- 6The specific terms of the amendment are detailed in Exhibit 10 filed with this report.