The US Internal Revenue Service has settled with Storage Technology Corp for a modest $37.1m to cover the back taxes it reckoned the company owed from 1977 to 1984; it had been demanding some $600m, but the judge hearing the bankruptcy case ruled that StorageTek owed no more than $22m plus accrued interest – $33m or so (CI No 580). Rather than appeal, the IRS went into a huddle with StorageTek, which will pay $23m with a six-year 12% note and the balance in notes, stock and cash. A bankruptcy court hearing is set for June 18, at which the firm’s discharge will now be a formality.
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