Note 3 - Related Party Transaction

12 Months Ended

May 31, 2012

Related Party Transactions Disclosure [Text Block]

3.     RELATED PARTY TRANSACTIONS

In connection with the Acquisition, the Company entered into a management services agreement with the Sponsor pursuant to which the Sponsor received on the closing date an aggregate transaction fee of $18.0 million in cash, of which $8.0 million was capitalized as deferred financing costs relating to the commercial banking services that the Sponsor provided in conjunction with negotiating the debt arrangements. The remaining $10.0 million was incurred by the Parent but paid by the Company out of equity proceeds. In addition, pursuant to such agreement, and in exchange for on-going consulting and management advisory services that will be provided to the Company, the Sponsor will receive an aggregate annual monitoring fee of $3.0 million that is prepaid quarterly. In the Successor fiscal 2012 period, approximately $3.2 million was recorded for monitoring fees and expenses and is included in general and administrative expenses in the consolidated statement of operations.