June 13, 2001

 

 

Headlines----

 

 Comdisco Wooed by GE Capital Pending BK

   My Goodness--- Finova Bankruptcy Judge Approves Berkadia Rescue Plan

   “Wet Pets”---What is 1Lease.?

       Sunday Sermon---Readers Respond

         RA9---the Next Y2K Scare or “For Real?”

           The Times They Are “a changing”— Polaroid,  one example

               Rudolph Giuliani to Become a Lease Broker?

 

 

 “ He spent 3 days in our office.  After he left he responded promptly to our support calls - this was money well spent and I would not hesitate to do it again.”

            June_Sciotto,     Regalfinance

 

Whatever Happened to.....  Thursday’s edition---Tomorrow

 

 

     NEW SURVEY

 

In regards to the salary survey that was done, has there ever been one done

on sales managers and their compensation package breakdown?

 

Thanks!

 

Jody Kistaitis

P&L Capital Corp.

jody@plcapital.com

 

GREAT IDEA!!!

 

“On” or “Off the Record”, please send us your sales manager salary and compensation

package breakdown.   We completed a salesman’s survey.  This time: Sales Manager

Survey.  ( kitmenkin@leasingnews.org )

 

http://www.leasingnews.org/articles.doc/newsletter6.htm

 

 

 

Comdisco Contemplates Filing Chapter 11 as Suitors Talk, Such as the World’s Largest

 

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GE Capital in Comdisco talks
By Peter Thal Larsen and Robert Clow in New York and Nikki Tait in Chicago
 Financial Times



GE Capital, the financial arm of the world's largest company, is in discussions with Comdisco about taking over the troubled financial group's $5bn leasing portfolio.

A deal would form part of a break-up of Comdisco as it tackles the fallout from its foray into telecommunicaions and internet ventures which are largely responsible for saddling the company with debts of around $5.85bn.

Comdisco is also close to concluding an auction of its disaster recovery division. International Business Machines, Sunguard and EMC are among the companies expected to submit offers for the business, which provides backup computer systems to large corporations.

According to people close to the negotiations, GE Capital is interested in taking over Comdisco's portfolio of telecoms, electronics and computer leases. Comdisco and GE Capital declined to comment.

Although there is no guarantee that any deal will be concluded, GE Capital's interest signals its continued desire to take advantage of smaller competitors' difficulties to expand its portfolio.

Last week GE Capital and Goldman Sachs, the investment bank, narrowly failed in an attempt to take control of Finova, the financially troubled commercial lender, which instead recommended a rival offer organised by Warren Buffett, the value investor.

However, GE is understood to have no interest in making a full takeover bid for Comdisco.

People involved in the discussions now expect Comdisco to file for protection from its creditors under Chapter 11 of the US bankruptcy code before a break-up can be completed. The company is facing a series of large debt repayment deadlines before the end of the year, and has said it will have difficulty making those payments unless it can sell assets.

Early in 1999, Comdisco embarked on a massive expansion of its telecoms and venture capital business after Nicholas Pontikes, son of the company's founder, took over as chief executive.

The company subsequently made a costly error by investing more than $500m in Prism Communications, a competitive local telecoms operator that has since ceased operations. It has also written off $210m from its $1.5bn venture capital portfolio The portfolio is now considered the least likely part of the business to attract interest from potential buyers.

In February, Mr Pontikes resigned and was replaced as chief executive by Norman Blake, who launched a widespread review of the company's strategic alternatives.

Comdisco is understood to be keen to find a buyer for its disaster recovery division, as the uncertainty created by a Chapter 11 may cause clients to cancel their contracts. The auction is expected to be concluded in the next few weeks.

In the past year, shares in Comdisco have fallen from a high of around $33.5. On Tuesday the shares closed up $0.06 at $2.74, valuing the company's equity at around $416m.

 

Finova Bankruptcy Judge Approves Berkadia Rescue Plan

 

           Confirmation hearing for August 10.

 

 

By Jeff St.Onge, Bloomberg

 

Wilmington, Delaware, June 13 (Bloomberg) -- Finova Group Inc. won a bankruptcy judge's permission to proceed with a $7.35 billion recovery plan for the finance company proposed by Warren Buffett and Leucadia National Corp.

 

Approving the recovery plan's disclosure documents, U.S. Bankruptcy Judge Peter J. Walsh in Wilmington, Delaware, overruled an objection by GE Capital Corp. and Goldman Sachs Group Inc.

 

Creditors on Friday rejected a $7.25 billion offer by GE Capital and Goldman Sachs in favor of the higher offer from a joint venture of Buffett's Berkshire Hathaway Inc. and Leucadia.

 

``Given the status of GE objection being pursued with less than vigor and in light of the significant negatives suggested'' by Finova's bankruptcy attorney, Walsh said he was overruling the objection.

 

Walsh also approved a $6 billion loan from the venture, known as Berkadia LLC, and a management agreement. Scottsdale, Arizona- based Finova will use the $6 billion loan plus its cash reserves to pay creditors $7.35 billion.

Berkadia is helping to manage Finova's operations under a 10- year agreement reached before the company filed for bankruptcy protection in March.

 

`Tremendous Team Effort'

``This was a tremendous team effort,'' William J. Hallinan, Finova's chief executive, said after today's hearing. ``We're all very pleased the plan is going forward on a consensual basis.''

 

Walsh's rulings clear the way for Finova to solicit creditors' approval of the transaction. The plan must be approved by a majority of creditors, together holding at least two-thirds of Finova's debt.

 

Walsh scheduled a plan confirmation hearing for August 10.

 

Under a modified Berkadia proposal filed late Monday, unsecured creditors will get about 70 cents per $1 of debt. Finova will issue 8-year senior notes with a 7.5 percent interest rate to pay the remaining 30 percent of the claims.

 

Berkadia also said it will reduce the interest rate on its $6 billion loan to Finova, which had been a minimum of 9 percent, to the London interbank offered rate plus 2.25 percent.

 

The plan also calls for Berkshire and Leucadia to own 51 percent of Finova's outstanding shares and pick the majority of its board of directors.

Finova's shares will be reinstated under the Berkadia proposal, but will only represent 49 percent of the company's outstanding common stock after the plan is confirmed.

 

Berkadia and the GE Capital-Goldman group vied for Finova, which failed last year after some clients were unable to repay loans.

Finova shares rose 52 cents to $5.30.

 

 

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  RA9—Eastern Association of Equipment Leasing

 

Yesterday, Tuesday June 12, the EAEL sponsored a very successful conference

call-in for a presentation moderated by Michael Leichtling, a Partner at

Jenkin & Gilchrist Parker Chapin LLP and long time industry expert. The

speakers were Joseph Mathews, Partner, Jenkins & Gilchrist Parker Chapin

LLP, Marc Hamroff, Partner, Moritt, Hock, Hamroff & Horowitz, LLP, and

Despina Shields, Western Regional UCC Service Manager, CT-UDS.  Mr. Mathews'

presentation covered the transition rules for RA9.  The new law goes into

effect July 1, 2001 and it is estimated that by that date 40 or more states

will have enacted RA9.   Despina discussed when, where and how to file UCCs.

Marc, who has taken his presentation on the road for over one year

discussing RA9 and is one of the most knowledgeable leasing attorneys on the

law, spoke about defaults and creditor remedies under RA9.  Questions were

taken over the phone from the audience after the presentations. The entire

session took approximately 1 1/2 hours.  Tapes of the conference call are

available and can be obtained from the EAEL office after July 2 by calling

Alison Pryor at 914-381-5830 or e-mailing Alison at amfnyc@aol.com.  Further

information about the act can be found at www.nccusl.org.

 

Steven B. Geller, CLP

Leasing Solutions LLC

www.leasingsolutionsllc.com

20 Dike Drive, Wesley Hills, NY 10952

sgeller@leasingsolutionsllc.com

phone:(845)362-6106 fax: (845) 354-2803

cell phone: (914) 552-0842

 

 

  ( Thank you. Ken Greene is working on an article for those who will be interested.

     Also Charlie Lester noted to us:\

If I understand our tangled legal system, new laws under Article 9 will

take place soon that could dramatically redefine the rights of lessors and

creditors in lawsuits for non-payment. For example, UCC's must be filed in

the state of incorporation as well as the state where the business is

located and corporate names must be EXACTLY the same as the SOS shows, not

what shows on the bank account or the Articles of Incorporation. Are you

familiar with these changes and if they are as far reaching as I have heard,

would they be a hot topic for leasing News? Thanks, Charlie

   I appreciate the work by advisory board members Steve Geller, Ken Greene,

and Charlie Lester.  Our advisory board helps us quite a bit:

 

        Editorial Advisory Board

 

Bob Baker, Wildwood Financial, St. Louis, MO

Steve Crane, Bank of the West, Walnut Creek, CA

Phil Dushay, Global Leasing, New York, NY

Steve Geller, Leasing Solutions LLC, Wesley Hills, NY

Mike Graneri, Graneri and Associates, Miltown, NJ

Ken Greene, Attorney, Greenbrae, CA

Bruce Kropschot, Kropschot Financial Services, Vero Beach, FL

Charlie Lester, LPI Financial, Marietta, GA

Bob Rodi, LeaseNow, Warrendale, PA

Bob Teichman, Teichman Financial Training, Sausalito,CA

Andrew Thorn, Thalman Financial, Apple Valley, CA

Rob Yohe, Yohe and Associates, Stilwell, KS

Ginny Young, Brava Capital, Orange, CA

 

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            Sunday Sermon---Let Us Know if You Don’t Want to Receive It

 

 

 

It is difficult to please everyone.  Two people asked to be removed because of

Sunday Sermon.  Two asked to be put on the list “ No Sunday Sermon.”

 

Some don’t like a daily report.  Others, when we skip a day because of light

news, ask why we did not print one.  Some say it is too long, so we now

refer to our site to read the entire press release or story ( if it is long ).

We try and change to keep readers “happy”, such as this person:

 

“I would like to be completely off of your list.  When I signed up I did not realize that I

would get stuff daily.  Please do as I request and take me off of the list without any questions.”

 

Name Withheld.

 

I don’t want to start a separate list as it will double the work of adding people,

changing e-mail, or finding people. When readers leave a company, we don’t

know about it unless they tell us.  We find out when the e-mail bounces back.

The problem is it bounces back as an ISP address and not the name of

the reader. Our list is by first name. Generating a second list creates more work. Sue would tell me I am complaining, but I am just trying to explain our reasoning

in not having two lists.

 

.Nevertheless, I have started a list of people who do not want to receive and

will delete them from the mailing. We listen. We don’t want to lose you.

 So if you are one of the readers who does not want Sunday Sermon, let me know.

 

The great majority respond favorably, in chronological order from time

received:

 

There's always the delete button for those who don't want the Sunday

Sermon.....don't sweat it.

 

I was so touched by Mr. Riding's last email to you and now I'm sad about his

passing.  I didn't even know him.

 

Monday Sermon from Toni---live in the present moment.

 

The joke was funny.

 

Have a great day.

 

Toni Rios

<trios@prolse.com>

^^^

 

I don't think sermons, jokes, and the "tidbits" you end with are necessary.

The reason I read you is to be informed about the leasing industry.   Sometimes I like

to print your article, but end up with "stuff" that holds no meaning for me.  How do busy people have the time to read all of it?

 

   Carole Reed

carole@attitude.com

 

 

 

(Thank you....Sunday Sermon is sent out on Sunday.  Perhaps you receive it on Monday. You are also talking about the e-mail signature...which has grown, I agree.  It is not

part of the news, just part of my e-mail signature.  You don't have to read it if you do

not want to. editor)

 

^^^

 

I strongly encourage you to keep sending your Sunday Message. Perhaps

renaming it could help the perception but the content is what counts. Don't

bend your principles. Those that ask to be removed and/or those that are

offended are probably staunch supporters of the 1st Amendment ONLY when it

applies to THEIR religious freedom and/or liberal (no offense) causes that

they support. Those that don't want to read it can just delete it. It's that simple.

 

For what it's worth ...

 

Jeff

 

Jeff T. Holland, CLP

CapitalPartners, Inc.

"Equipment Financing Solutions"

Phone 205-803-2300

Fax     205-803-2122

 

^ ^^ ^

Thanks, and I for one appreciate the comments and personal notes in your news letter.

 

Mstewart

 emc-1@swbell.net

 

^^^^^

I for one, appreciate the Sunday Sermons.  If you decide to split your list,

please put me on the list of people that receive the Sunday Sermons.

 

Thanks, Kit!  Keep up the good work!

 

Tom Luing

t.luing@att.net

763-509-9274

 

^^^^

 I am continuously surprised at the breadth of your information and the depth of your opinions. I am particularly impressed by your "Sunday Sermons" . I enjoy reading and hearing the thoughts and opinions of learned people. That helps me know who to trust and who to fear. I may not always support your thoughts and opinions, but I will always support your right to expression of your thoughts and opinions.

 

Keep doing what your doing and don't quit the "Sunday Sermons"!.

 

Sincerely. Bill Cowden.billc@springsleasing.com

 

^^^^

as far as I'm concerned... please keep me on your mailing list. 

I appreciate the balanced-timely-communication including the Sunday Edition. 

And hopefully,  when I'm laid to rest someone will also say a few uplifting

or "moving" words about me.

 

Thanks also for your kind thoughts for leasing people on the street.  I'm

looking forward to your job posting section.

 

Warmest regards,

 

Rick Johnson

Sims4lease@aol.com

 

^^^^

 

I f someone complains to receiving the Sunday Sermon and says they want to discontinue if you don't stop, I say delete 'em. I am not of a religious bent but  I like to keep an open mind. These people that object should just delete the message and quit complaining.

You provide a great and valuable service that my brother and I look forward to daily.

I don't think you should waste your time with two different lists. I would rather you spend that time on what you have been doing well.

.

I think this is your sandbox Kit...do what you want.

 

Michael Kenefick

The Graphic Partners Group,Inc

grapart@bellsouth.net

ph   770-218-8041

fax  770-218-8817

 

^^^^

 

 

This is an open letter to those who are offended by the Jew

Dao/Christian beliefs that our country was founded upon "get over it"! Keep

up the good work Kit. It is a shame that the few, speak for the many, in

this country any more and the rest of us tend to let them! I for one want to

say to the PC crowd "get off our backs", you don't own us, our industry, nor

this news letter.

 

America is constantly preached to by the "politically corrects" of this