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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. 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 ----------------------------------------------------------------------------------------------
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. ------------------------------------------------------------------------------ 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 ---------------------------------------------------------------------------------------------- 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 (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 ^^^^^ 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 ^^^^ 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 country and how dare you complain about Kit's sermons. It's his letter and unsubscribe if you don't like it!!!! If you don't like the traditional religious origins of this great country, a quick word of advise, accept them or leave! This is a democracy and the majority rule, not you!!!! Rich Madera @ CIC <richwm@mninter.net> ^^^^ Good afternoon Kit! Count me as one who enjoys your Sunday Sermons. They're a good break from the hard news and items you cover and pass on. Keep it up. You're a private person distributing a newsletter, not a government organization. Which brings me to my comment on your comments - since when can't you pray in schools? Anybody can pray in school. To themselves, with a group . . . to whichever Lord they choose with whichever prayers they choose. It's when a teacher, administration or government tells them over the loudspeaker which one they're going to pray to and in what way that's the problem. I never want to see that. Big difference. Scenario - I go to my son's fine public school and lead his class in a Hail Mary. Would my Baptist brethren, my grandfather's denomination by the way, be real pleased with that? Keep up the good work. I look forward to your newsletter and Sunday Sermons every week. Monty Reeves Capital Funding, Inc. ^^^^ I think the Sunday Sermon is fine the way it is. In this business we have found that you just cannot make everyone happy all of the time. Keep up the good work. Sean Wheeler ^^^ PLEASE DON'T CAVE ON THE SUNDAY SERMONS NOTES!!!! FOR THOSE WHO DO NOT WANT TO REFER TO A RELIGIOUS WORD OR REFERENCE - JUST DELETE ANY REFERENCE OF SERMON NOTES ON YOUR E-MAIL AND THE REST OF US CAN ENJOY KEEP UP THE GOOD WORK I WAS PLEASED AND SURPRISED WHEN YOU BEGAN THE HEADING OF - SERMON NOTES THE ONE WHO DOES THE WORK GETS TO SET THE AGENDA!!!!!!!!!!!!!!!!!! HAVE A GOOD WEEK J ^^^^ I enjoy reading your financing related items, but bristle at the birthdays of Nathan Hale, Susan B. Anthony, etc. etc...........its like having to flip through the magazine and newspaper ads to get through to the articles. After a busy day at the office (I run all E-mail in the early morn) - I don't have the inclination to turn on the computer at home...it interferes with my heaving drinking and partying.......just kidding.... Name Withheld ^^^^^ Just between you and me the guys who want you to take them off the Sunday Sermon can go to hell. In fact they very well may do that without any urging from us! Kevin Brackett Consulting & Investments KBrack9657 ^^^^ At the end of the day, let us remember the words of Grantland Rice--------- When THE ONE great scorer comes to mark against your name. HE marks not that you won or lost---but how you played the game. Gene DeMarco geneatsdi@home.com 602-390-4447 cell# ( Thank you for all the positive comments. I am sure Roger Riding would have gotten a big kick out of his passing stirring up the passion and concern as you have expressed. Thank you, again. editor ) The Truth---The Whole Truth and Nothing But the Truth!!! Steve Wheeler Leaving Equipment Leasing to Manage Three “Wet Pets” Stores Kit: Was this a joke, or what!!!! And the new leader from Michael's Floral, the fastest growing retail store chain in the West. Never heard of ‘em. Isn’t this a faygeleh business? Tell me the truth, Kit “We feel he brings a solid financial background to the company which One Lease is in need of at this time.” Are you making this up? “Steve spent his last 6 years in the Operations / Finance department.” I wish this were on radio and Dave Rose at CBS did his, “News read slow.” This is a perfect one. Real slow, so we can really hear it. “Steve----spent----his-----last---- 6----years----in----the----Operations---Finance---department----a ----solid----- financial-----background.” This has to be a joke, right, Kit? This guy knows about running a leasing outfit? Let me ask you--- Is this Kosher? IzzyFinster Gotlease@hotmail.com ( No, Izzy, this is not a joke. Here is some more information on this franchise-broker operation, which we believe does discount, broker, and has their own investor money. One Lease Corporation 800.996.7440
800.977.4666.fax www.1lease.net www.1leasefranchise.com The entire package is on line at www.1lease.net including: OneLease accepts
private investors to fill our
portfolio from as little as
$5,000 to $500,000 or more.
We control the entire process.
With return rates from 11%-35%
in as little as 24 months you
can see that this is a great
and safe way to invest in the
future of financial transactions. also
from their website: Company
Profile! One
Lease is a small to large ticket
funding source with offices
in California, and Arizona.
We have a highly skilled
professional staff to provide
the broker community with unparalleled
support. We do not directly solicit business from Vendors
or Lessees.
We want to be your partner,
not your competition. Our
staff has over 35 years of leasing
experience with some of the
largest financial institutions
in the nation.
We have a CLP, and an
in house legal staff for your
convenience. We
are not a lender that uses a
scoring model.
We feel if the transaction
makes sense than we will consider
it. We don’t feel that any one item should
make or break a transaction.
Within
the package you will see many
exciting programs that we can
offer. Always remember that this is just a sample
of what we can offer.
After reviewing this
package please feel free to
call our office and an account
representative can explain in
detail all of our programs. With
our far reaching programs and
totally automated Web-site One
Lease is truly unmatched in
the leasing industry.
We offer programs for
A, B, & C credit qualities. Start-up transactions and tax leases round out our portfolio. One
Lease is simply the only lender
you will ever need. (
We know from Sean Wheeler that
leases were “sold”
to Bancorp and
First Sierra, now American Express
Small Business Finance. There
may have been other funders.
We know they also raise private
investor funds as did SDI Capital,
PinnFund as well as many
other leasing companies. The
rates on line appear to too low
for regular discounting and/or
margins very slim, in our opinion. Here
is a sample of what they spam
to brokers: New Programs & Bonus!
One
Lease has added 5 new leasing
programs they are as follows: 1. True start-up program application only to $20,000 2. 0 Down Program. 3. 20 Points of Commission* 4. Used equipment up to 25 years old* 5. $2,000 bonus on qualified funding's. Go
to our secured web-site to download
a current broker manual for
details: One
Lease 800-996-7440 800-977-4666-fax www.1lease.net The
thrust of their company is to
appeal to brokers to submit
applications to
them, and the franchise program
is very active in faxes and
e-mail to
brokers from professional mailing
lists, including AOl, hotmail,yahoo, and
perhaps companies such as biblio.tech
(4,500 names alone ), among
others, including the associations
where when you become a member,
you get the list of all members.
editor ) I'm not convinced it is so, just because Wheeler says it is. Last time I sent him a deal at 1 lease it ended up at another source. Same non-sense as Directional Funding. The programs they claim to have look to good to be true for this funding environment. The franchise approach is an old one. Global Leasing in N.Y.C. used to charge $10,000.00 to "own your own business", give a week of training that ultimately explained that you will be privileged to have Global as your funding source. The result is that Phil got his salesmen to pay him $10k to work for him, and cover their own daily expenses. Of course, they could rent office space from him if they needed to. Name Withheld We Really Are in Bob Dylan’s Song Now, and perhaps it is happening to the leasing industry and we are too close to see it. Those at Polaroid see it: It’s Not Just Happening to the Leasing Industry--- Polaroid cutting 2,000 jobs, or 25 percent of work force By Justin Pope ASSOCIATED PRESS BOSTON Camera and film maker Polaroid, facing enormous debts as it tries to reposition itself as a digital imaging company, said Wednesday it would cut 2,000 jobs, or 25 percent of its global work force. Its stock price leapt 11 percent in early trading, but was still less than a tenth of its value five years ago. About half of the jobs cuts would come in the United States, said spokesman Skip Colcord. Most of the company's domestic work force is in Massachusetts. Polaroid said the restructuring should save the Cambridge-based company between $175 million and $200 million annually by the end of 2003. The company will take restructuring charges against earnings totaling $150 million to $175 million in 2001 and 2002. "This is an extremely difficult decision, but an absolutely necessary one if Polaroid is to compete in the digital future," said Gary T. DiCamillo, chairman and chief executive. "We must focus on our new Opal and Onyx instant digital printing technologies and manage our core instant business to generate cash and reduce debt." The company had debt of $860 million as of May 16, according to its latest quarterly report. "It's long overdue. They had to do it," said analyst Ulysses Yannas of Buckman Buckman & Reid. He said the cuts would amount to a 10 percent cut in Polaroid's selling, general and administrative costs, which includes advertising and research. Yannas said those costs "are way out of line with their competition," and added, "This is where, essentially, they have to do heavy cutting." The company already cut 950 jobs in February as it announced a plan to reduce debt. Polaroid's core business of instant photography has struggled as one-hour film developing laboratories have proliferated. At an analysts conference last month, the company debuted new digital printing technology it said is part of a new business plan to collaborate with other companies to build kiosks, printers and related hardware. But while trying to reshape its business, DiCamillo has struggled to pay down $950 million in debt since joining the company in 1995. In the last year, the company has sold several real estate assets, including its headquarters building in Cambridge and its Waltham office park. The company's stock price was $45 per share five years ago. Polaroid shares rose 42 cents to $3.95 in early trading Wednesday morning on the New York Stock Exchange. Rudolph Giuliani to Become a Lease Broker? Divorce Lawyer Says Mayor Short On Cash Rudolph Giuliani's divorce lawyer said Tuesday that the mayor is nearly broke, with only $7,000 in his personal bank account, despite his $195,000 salary and free housing. The attorney, Raoul Felder, says most of the mayor's assets are tied up in stocks, real estate and retirement funds that he shares with estranged wife Donna Hanover. But he says Hanover has close to a quarter million dollars under her own control. As the couple's divorce proceeds, Giuliani and Hanover have one more week to come up with a mutually-acceptable plan to introduce their children to the mayor's girlfriend, Judith Nathan, before the judge could intervene to set the terms herself. The judge, Manhattan Supreme Court Justice Judith Gische, denied a request by Judith Nathan's ex-husband, Bruce Nathan, Tuesday to combine their custody battle over their 16-year-old daughter with the Giuliani-Hanover divorce. Mr. Nathan claims his ex-wife's relationship with the mayor is negatively affecting their daughter and that therefore the issues in the two cases overlap. Justice Gische also tossed out a request by the mayor's legal team Tuesday that she recluse herself from both cases. Mayor contemplates new career when leaves office, may become 1Lease Franchisee ----------------------------------------------------------------------------------------------
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