"Apollo is trying to do two deals at once without offending management at either company," a banker familiar with the transaction said.

According to bankers familiar with the offer, if the bankers left Smith Barney before the notes came due, they would forfeit the principal.

The Economy A compromise aid package for Brazil is expected by regional bankers and others familiar with its debt crisis.

For bankers familiar with the complexity of Latin loans, such difficulties come as no surprise.

Leading international banks are expected to sign an $8 billion debt restructuring later this week for the News Corporation, a banker familiar with the package said.

"The central bank of Russia was more creative than others," said a Russian banker familiar with the central bank's operations.

These holdings were reported by bankers familiar with the situation, but none of the investors would comment on the matter.

One American banker familiar with Garuda's financial picture referred to the company as "toxic waste."

"You can't just go on and on like this," said one banker familiar with the deal who spoke on condition of anonymity.

Ultimately, many of those notes ended up in the hands of foreign bankers - sound familiar?