Whether eln has a write off or a profit on this transaction depends upon: 1. The fair present value of the consideration to be received, MINUS 2. The book value of the note receivable on eln's books.
That note may have been written down as an "impaired" asset, and/or a portion of the note may have been reserved in an allowance for uncollectables.
In either event, since eln was required to record valuation allowances or impairement charges to the 1999 zero coupon note, I doubt that any gain or loss on today's transaction will be more than 3 million, an amount not material to eln's financial statements.