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Kit Menkin’s Leasing News Monday, March 11, 2002 on line at: www.leasingnews.org -------------------------------------------------------------------------- Independent, unbiased and fair news about the Leasing Industry Headlines---- Commercial Money Center Throws in the Towel Semon Associates Arranges $300 Million Private Label Web Based Tax-Exempt Syndication Platform Pure Markets Announces Growth, Best-Practices Recognition Marshall & Ilsley Completes Acquisition of Richfield State Agency, Inc. and Century Bancshares. Internet Leasing Company Bashing The Electronic Payments
Association (NACHA) More on the House Tax
Bill and Equipment Leasing The List---Up-Dated #### Denotes Press Release ------------------------------------------------------------------------------- Commercial Money Center Throws in the Towel “I regret to advise Leasing News that Commercial Money Center has officially closed down their operations. As employees we were told this afternoon that CMC was just no longer able to keep their doors open. “As I'm sure you were aware, CMC ceased funding quite some time ago. In an effort to do the right thing, they returned advance rental checks to lessees while keeping the bulk of the staff on payroll (of course without the benefits of new originations). “Though I'm not privy to what transpired, it was understood that they were working diligently on finalizing a new lending partnership, with which, we would be able to resume funding. I'm not sure if this fell through or just simply did not materialize quick enough. “I joined the company just under a year ago when I moved back to Los Angeles and I must say that I certainly respect their accomplishments and how they tried to serve a very under served market (C/D Paper). I also have nothing but good things to say about the stakeholders in the company that I got to know, the Fishers, Bill Hanson, etc., etc. These folks genuinely cared about their employees and exceeded all expectations when it came to keeping the company afloat. “Very regrettably another one for your list.” Ted Gartner 310.323.6403 (phone)310.345.7917 (cell) ted_gartner@yahoo.com As Leasing News reported in Friday’s early morning edition, Ty Hanson specifically said CMC had had not closed its doors. What we were hearing from employees was not true. He did say that I should speak with his father. “ I
definitely think if this was a football game, we are not only Doug
Flutie throwing the Hell Mary pass with 7 seconds left, but we are
on our own 30 yard line and Doug can't even throw it to the end zone!
“ Ty Hanson said. “We have four different people (Ron, Mark,
Wayne, Bill) talking to several different banks to do the re-fi. But,
it's going on 8 months and we haven't seen a dime and ALOT of money is going out!!!!!!
The Fishers have thrown a lot of money (Millions and Millions and
Millions) back into the company,
but it's getting to the point that it HAS to happen soon!!!!!
But, I am still answering all my calls and working as hard as I can!
“... But, my opinion is not fact or anything my Dad has told me. It's just my logical opinion. I mean, when CMC'S overhead is well over 1/2 million a month and nothings coming in since May, how long can you last? But, I'd give my Dad a call, he is higher on the totem pole and probably knows FACTS not opinions! ‘ Bill Hanson called Leasing News Friday morning, but we were not able to telephone him until the afternoon. The elder Hanson said he would be operating as Conrad & Associates, his former leasing company, which he may have kept active. It is reported that a few checks paid to brokers the last few years came from Conrad and Associates. Hanson did say he would be operating with his long time partner Gil Evans, along with his son Ty. He said it would be direct leasing marketing effort. He further said that in ninety days he would have re-brokered lines of credit establish and would be working with “approved brokers, ones who stood by us. “ He would also be seeking new broker business in the near future. Bill Hanson on Leasing News “Meet the Leasing News Maker” said “CMC in the last 3 and 1/2 years has funded over 300 million” with this qualifications: “500 fair isaac..closed BK....several NSF's..... released tax liens and judgments.........we have a rate factor ...like renting an apartment .03630 for 64 months.” “I started my leasing career with Heritage Leasing under Ron Wagner and my life long friend Gil Evans. They sold Heritage to Imperial in 1995. I decided my skills in leasing were ready to branch out on their own and I started my own company in 1996.” “In 1999, we sold the company to Commercial Money Center”. In the last communication, he had returned many of the advance rentals, except fees and other expenses, or in cases where lessee or vendors had cancelled, the lease. He had made a deadline for the return of the money. A two week follow-up found this response: “Kit, since everyone is working so hard on completing the pool, I am giving the approximate figures, these numbers will be lower then the actual numbers, (but their close) The number of checks sent out is approximately 342+, for over $1,200,000. We have approximately 50+ checks more to be approved and sent out.”
Thank You Bill Hanson BillH@cmcca.com
Jeff Beier wrote this e-mail the day before CMC Closed Their Doors:
“We have now lost a total of approx. $450,000.00 in business that Alpha Omega would have sent over to North American Capital due to the CMC introduction. “ALL we need to get our relationship back with Alpha Omega is YOU to send MY TIRE STORE THEIR MONEY BACK like everybody else’s you sent back!!!! “If it isn't bad enough that you have stripped North American Capital from approx. $50,000.00 in revenue GP you have your reps calling my vendors for business. You mentioned on the phone that this was an accident and would never happen again. Well, let me tell ya what, it just happened again. When Joe Cortez worked with us our vendors NEVER got called by ANYONE but me or my reps. Now that Joe's gone, I don't know what kind of organization you think your running and what type of relationships you value. But every time I speak with you, you act like my best friend, want my business and make me feel warm and fuzzy about our relationship. “Then when we hang up my VENDORS get called, my lessee's get screwed and I never get my deals funded so I never get paid for months of work. In addition to not getting paid you take the food out of my quadruplets, twins and older boys mouth by ruining my relationships with valued sources such as Alpha Omega Automotive. “I challenge you to handle this situation prior to Feb 22, 2002. I challenge you to get My Tire Store their refund so Alpha Omega can pick up their equipment and I challenge you to have one of your Tuesday Morning Meetings about not calling Jeff Beier or North American Capital's Vendors to contradict the meeting you had telling the reps to do so. “If I have offended you then good. It's about time you've been offended as much as my vendors, lessee's and I have. “If these issues are not handled by Feb 22, 2002 I challenge you to not show your face in Costa Mesa at the UAEL funding retreat where I believe UAEL would love for me to sit down and challenge their ethics standards with one of their board members. “Side Note: What do you think Kit? Feel free to quote me and use my name if you like... “ Thank you, Jeff Beier e-mail:jeffbeier@nacapital.com North American Capital 949-425-0259 ph 949-425-0211 fx internet: www.nacapital.com From a vendor the last week who wanted to know what was happening: “Our company has NOT had the outcome with Commercial Money Center - Bill Hansen $75,000 owed - 6 months later - one lawsuit unanswered. Where's my check Bill? Why is CMC continuing to pursue contracts without funding 6+ month old transactions? “We were given many, many excuses up until the tragedy of 9-11 and then of course that was the excuse as to why our funding was again being delayed. Our company would have definitely not dealt with CMC had we been told "You deliver the equipment, here is the purchase order but you may be paid in 2 weeks, 6 months or possibly never". “You don't know my company from "Adam" and could easily put us in the category of excuses of fraud, misreps, vendor whatever. But I can tell you we are a distributor of one of the finest manufacturers in the world of equipment and have been in business over 30 years locally. Other Ditch Witch dealers have had the same experiences with CMC - some paid (well past the average funding time of other companies and with an abundance of begging) and others possibly still not funded.” Rhonda Coffin rlcoffin@valleyditchwitch.com ### ##################################### # Semon Associates, Inc. Arranges $300 Million Private Label Web Based Tax-Exempt Syndication Platform Atlanta, GA (The Lessor's eNetwork) - Semon Associates, Inc. (SAI) has successfully negotiated an 18 month syndication agreement providing up to $300 million in funding for tax-exempt municipal lease agreements. The agreement call for the use of a highly secure, web-based platform, built and managed by SAI, enabling the seller to privately post transaction details for immediate viewing by a select group of pre-approved prospective funding sources. Transactions are actually reviewed, purchased and funded within a few days enabling each party to better respond to market factors influencing syndication activities. The selling party in this agreement has agreed to immediately make available a minimum of $137 million in assets. ABOUT SEMON ASSOCIATES, INC. Since 1989, Semon Associates, Inc. has provided professional consulting and private placement syndication services for tax-exempt equipment leasing and finance portfolios. In 1996, Semon Associates, Inc. began developing an Internet platform for the efficient distribution of leases and portfolios. Over $4 billion in leases were listed for funding the first 14 months. For additional information, please contact John Semon via email at semon@elessors.com. #### ####################################### Pure Markets Announces Growth, Best-Practices Recognition
San Francisco,
Calif.– Pure Markets Corp., a leader in secured finance, announced
that it reached a number of significant growth milestones in 2001,
including key customer commitments, a new international alliance,
enhanced advisory services capability and over $1 billion in transaction
listings. "2001 was a year
of significant development for Pure Markets," commented Jay Fudemberg,
Founder and CEO of Pure Markets. "Most important was the adoption
and embracing of our value-proposition by leading enterprises. Their
enthusiasm for our unique and powerful financing solution, which is
delivered with web-based tools, online marketplaces and advisory services,
validates our business model and the robust value we bring to corporate
borrowers and lenders." In addition to reaching
over $1 billion dollars in transaction listings in its public and
private marketplaces, Pure Markets achieved other important milestones
last year:
"Pure Markets leverages
its deep financial experience, unbiased insight into current market
conditions, and powerful web-based tools to deliver both process efficiencies
and effective finance to borrowers. At the same time, funding sources
gain efficient access to the preferred transactions they wish to finance,"
said Bill Brandel, Research Director, Supply Chain Management, at
Aberdeen Group. "In 2002 we expect
to increase the rate of customer adoption, as well as to deepen the
offerings our customers find most valuable. Our mission for making
secured financing more efficient and effective is just beginning"
said Fudemberg. For more information, please visit Pure Markets at www.puremarkets.com. ( courtesy of ELAonline.com ) ################ ################################## Marshall & Ilsley Corporation Completes Acquisition of
Richfield State Agency, Inc. and Century Bancshares, Inc.
MILWAUKEE,
Marshall
& Ilsley Corporation is a diversified financial services ( courtesy of ELAonline.com ) ################# ############################# ------------------------------------------------------------------------------------------- National Association of Equipment Leasing Brokers 2002 Annual Convention http://www.cariberoyale.com/ ---------------------------------------------------------------------------------------- The List to be up-dated at: http://www.leasingnews.org/list.htm ( full chronological and alphabetical list will be on line ) Leasing News List Chronological 136 Changes BancParnters/First Commerce
Leasing (3/2002) It is reported
that Jim Lahti, formerly president of Affiliated Corporate Services and past president of the United Association of Equipment
Leasing, along with several staff members will resign from BancPartners of Lewisville, Texas. Chairman/CEO Rick Galtelli
says,” this news way too premature." Jim Lahti says," some changes are under way. We are excited about the new changes are under way. We are excited about the new opportunities
will be issuing a press release." (1/2002) Affiliated Corporate
Services, Lewisville, Texas
Merges with First Commerce Leasing Southern Pacific Bancorp (3/2002) “for the time being” not
going to be able to take any more intermediary business, according to W. Scott
McCullum, Capital Advance Leasing. TotalFundings (3/2002)
telephones do not answer.. The office number was (818) 889-7979. Alan Collier has confirmed the company has
lost a $150,000 arbitration with
Jack P. Winsten, former president of Winsten & Associates, Inc dba Corona America Financial. Alan Collier
says his company has
“scaled down.” Winsten
states Total Funding has gone through $3 million investor money as a dot.com company. In
a second interview, he stated he will make “no comment.”(5/2001)Corona
America Financial, So.CA.
CA ( 5/2001 ) purchased by TotalFunding.com, although called a merger.. Corona Pres. president, Jack
Winsten worked
at SDI Capital, as did Total Funding president Alan Collier. TotalFunding
to become solely an “application service
provider” and utilize Corona direct sales force. Certain
assets were purchased from SDI. No more broker business, except on
“case-by-base” basis, Collier says. Guaranty Capital Corporation,
Boston, Massachusetts (3/2002) the Leasing Operations of Guaranty Bank, has closed its doors. It appears the company is only billing and collecting until
the portfolio runs out. This bank subsidiary allegedly funded $250-$500 million per year. First International Bank
( 3/2002)to concentrate on its parents customers as part . of UPS Capital, to focus on UPS 1.8 million customers
for equipment leasing business. First International Bank was formerly
named First National Bank of New England. It was sold to UPS Capital,
a UPS Capital Company. The web site is www.firstinterbank.com. Spokesperson
denies out of "broker business," yet brokers report
otherwise. Capital Stream-(3/2002)
Steve Campbell Resigns as CEO . (8/2001)
John Kruse, VP, Account Development, announces another reduction
of staff as “... precautionary measures because we don't
see an immediate resolution to the economic downturn. We still remain financially healthy, and believe that reducing our
capacity is a prudent business decision.” Hal Hayden , Jim Buckles, Randy
Anderson, many sales people gone. Fisher-Anderson (2/2002)
Bob Fisher Resigns to form Firerock Capital; Scott Anderson stays behind to wind down portfolio; company
was sold to MarCap, Fisher reveals; MarCap reportedly having problems
with many of its leasing portfolio’s and wants to get out of
small ticket marketplace.(8/2001) Many sales people let go the last
few months, company cuts back,
Don Shadel, former Commercial Vehicle Division Manager of Fisher Anderson L C, and several CVD staff members, have started a new company
named Mark III Credit
Corp. The focus will continue to be new and used work oriented vehicles
in the small ticket range from $15,000 to $150,000. Our prior company, Atlas Funding G Group, Inc. was acquired by Fisher Anderson L C in September of 1998 to market a national titled vehicle program for brokers
and lessors. Our affiliation with
Fisher Anderson L C the last three years has been a pleasant experience, however recent changes in the transportation industry dictated that we both move in different directions." shadel@markiiicredit.com Commercial Money Center,
Southern California---(2/2002) Returns $1.2 Million to Date admit many complaints by applicants, vendors, and
brokers. Fails to secure insurance line of credit after September 11th. Citicorp/City Capital (2002) Machine Tool
Group of CitiCorp/CitiCapital Closes
This was originally part of the old Copelco run by Phil Meyers, based in Atlanta, Georgia. Comdisco (2/2002) Loses
$216 Million in First Fiscal Quarter Comdisco To File Reorganization Plan by April 15, 2002 ( 2/2001) deal falls apart with Tyco Financial, Wins Approval to Sell Leasing Units to GE
Capital (9/2001) the sale hearing date will be Thursday, November
15, 2001 Comdisco, Inc. and 50 domestic U.S. subsidiaries filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy
Code in the U.S. Bankruptcy Court for the Northern District of Illinois
on July 16, 2001. The filing allows the company to provide for an
orderly sale of some of its
businesses, while resolving short-term liquidity issues and enabling the
company to reorganize on a sound financial basis to support its continuing businesses. Simultaneous
with the filing, Comdisco also announced business to Hewlett-Packard Company for $610
million. Closing of that the
proposed sale of substantially all of its Availability Solutions transactions is subject to a court-supervised auction process. (8/2001) Comdisco
lays off 450 more, 3rd Quarter shows $168 million loss
(7/2001) -Comdisco + Execs face bankruptcy, many left holding the bag, assets for sale or sold, working on trying to get healthy by 2002, they say (7/2001) change of executive officers (6/2001) reportedly considering bankruptcy (5/2001)
Lays off 10% of staff, further
cuts to be made ( 5/2001 ) Reports Second Quarter: $8 Million Loss, CEO
Pontikes takes early retirement a few weeks before formal announcement.
Reports many losses to follow due to leases and loans with Dot Coms, among others Monarch Capital ( 2/2002 sales completed to Interchange Financial(
12/2001) assets and liabilities sold to Interchange
Financial Services FNF
Capital (2/2002)the nation's
largest provider of title insurance and real estate related products
and services, today announced that it has discontinued the origination
of small-ticket leases by FNF Capital, its wholly-owned leasing subsidiary.
The Company will take a one-time, after-tax charge of approximately
$8 million in the fourth quarter to cover costs associated with this
discontinued business. FNF Capital will continue to service those
leases currently in the portfolio. FNF originally entered the leasing
business through the February 1998 acquisition of Granite Financial,
, which was renamed FNF Capital10/2001Closes Down Small Ticket Operation
David Marks e-mail: LUV2SELLL@aol.com, home phone is (303) 639-940
Franklin Leasing, Des Moines, Iowa--owned by Liberty Bank-- (2/2000)-no
longer writing lease ( limited by regulations and leases are for sale
). CIT /TYCO (2/2002) Tyco
International pledged to accelerate its breakup plan, starting with a spin-off or sale of its Tyco Capital
finance arm within eight to 12 weeks.(2/2002)Participants at
the Equipment Leasing Association Annual CEO Forum, Feb. 4 - 5,
expressed doubt that Tyco can successfully spin off it financial
unit, CIT, through an IPO. ( 2/2002) Moves to increase liquidity, looking
to also buy leasing portfolio’s, for sale, Prez.Kozlowski says $10 billion- paid to much for CIT, analysts say will sell for $7.7 billion to $12 billion. Stockholder suit against company. Says Kozlowski made too much money-finder fee to director Walsh too much. Trouble in River
City, however Kozlowski holding
it together, But the
shares remain 49% below where they
started the year. ( 1/2002)
Tyco to Separate Into Four Independent, Publicly
Traded Companies(10/2001 ) Tyco Makes it Official: CIT Tyco Capital (8/2001) Many opt
to move to Tempe, AZ, stay with CIT, become bold, challenge GE and others in the marketplace, morale up, company on the move. ( 5/2001) CIT
Shareholders Approve Proposed Tyco-CIT Acquisition (3/2001)
Tyco International Ltd. makes offer for about $9.2 billion in cash
and stock in a deal that would allow the manufacturer
to finance purchases of its wide array of products. Bermuda Hq., N.H.
operation office. ( 2/2001) Closing
Atlanta office and others, "freeze" on new broker
business from this office (5/2001)
Bruce Nelson, Tempe, Arizona seeking
broker business. “We are an
asset based lender and provide equipment financing in the following
industries: Construction, Transportation, Logging,
Material Handling, Corporate Aircraft, Mining, Energy, & Marine ------------------------------------------------------------------------------------------- Internet Leasing Company Bashing Let me first say I really enjoy the newsletter! I do have a concern that our brand is being tarnished by labeling all internet based companies as eLease especially when some of these companies are not fairing very well. I just want to make sure that our company is being represented correctly and there is no confusion in the marketplace. We have invested heavily in this name, technology, and pending trademark and I feel that it is not being represented in a fair or accurate way on the LeasingNews site. It looks as though from the headline in today's news that both eLease and Totalfunding are scaling down when eLease is in fact growing. We just added Jennifer Kardos, CLP as Vice President of Operations. We are very excited to have her aboard and her 14 years of leasing experience to help guide us. Keep up the excellent work. I really enjoy hearing the news in the industry and will hopefully see a new classification for internet based leasing companies. Kind Regards- Tom Williams eLease www.elease.com http://www.leasingnews.org/associations2.htm The Electronic
Payments Association (NACHA) NACHA is a not-for-profit trade association that develops operating rules and business practices for the Automated Clearing House (ACH) Network and for other areas of electronic payments. NACHA activities and initiatives facilitate the adoption of electronic payments in the areas of Internet commerce, electronic bill payment and presentment (EBPP), financial electronic data interchange (EDI), international payments, electronic checks, electronic benefits transfer (EBT) and student lending. We also promote the use of electronic payment products and services, such as Direct Deposit and Direct Payment. NACHA represents
more than 12,000 financial institutions through our network of regional
ACH associations. We have over 600 members in our seven industry councils
and corporate Affiliate Membership program. The following might be of interest to many of your subscribers. Todd Cadwallader Lonestar Financing Associates, LLC 972.380.8317 972.380.8357 fax cadwallader@ev1.net House Passes Depreciation Bonus Bill In a major victory for the construction equipment industry, the House of Representatives on March 7 gave overwhelming approval to an economic stimulus bill that will help power the nation's economic recovery by providing real incentives to invest in new equipment. For the last several months AED has been leading construction industry efforts to enact investment stimulus legislation and arguing the case for a depreciation bonus in particular. We've cited statistics from the Department of Commerce showing that investment in new equipment has continued to fall sharply over the last year while other key economic indicators, including personal consumption expenditures, have continued to be strong and show growth despite the economic slowdown. The message AED members have been sending to the Hill has been clear: If Congress wants to stimulate the economy, kick-start the manufacturing sector and create new jobs, it must encourage new equipment purchases. Clearly that message has gotten through. The legislation passed by the House would create a depreciation bonus equal to 30 percent of the cost of new equipment for the year in which the equipment is placed in service. The new additional depreciation deduction would apply to property put in service after Sept. 10, 2001, and before Sept. 11, 2004, and would be held harmless from the Alternative Minimum Tax. In addition to creating the depreciation bonus, the House-passed stimulus bill would also: Temporarily extend the general net operating loss carry back period from two years to five for taxable years ending in 2001 and 2002. Provide an additional 13 weeks of unemployment benefits for eligible displaced workers. Encourage recovery and rebuilding in New York City through investment incentives and new financing mechanisms. Extend a number of expiring tax provisions. The 417-3 vote in favor of the compromise bill marks the first time that a substantial number of House Democrats have supported stimulus legislation and gives the bill crucial momentum going into the Senate. In comments made after the bill was approved, Senate Majority Leader Tom Daschle left the door open to Senate action: "We will withhold judgment until we see it in writing and get it over here, but at least the signs are encouraging," he said. The Senate may vote on the bill as early as March 12. To view the Joint Committee on Taxation's summary of the tax stimulus bill, click here: http://www.aednet.org/government/pdf/03-07-2002_jct_explanation.pdf |
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