Orix
Up 14% First Six Months
Unicapital Insider
Capital Stream to Issue Capital
Advantage
Finova Suspends Dividend
The List--Up-Dated
New Readers---We have all our past issues on line www.leasingnews.org, in our
archive section. If you are specicially interested in the Sierra Cities Part II
story, go to: http://www.leasingnews.org/archives/November/11-07-00.htm
Report from Unicapital Insider
So
far from what we know here at the office in Portland..(which is not much since
everyone in management is supposed to be under a gag order.).....Wednesday was
a bad day for the operating units.
When the employees showed up for work they were greeted by a "Transition Team"
from an agency. UOG's IT group had been instructed to cancel everyone's access
to the computer systems, security cards taken away,all legal materials boxed up
& locked away, and one of two notices in the paychecks.
One
was "thank you for your services, you are no longer needed, here is your severance
package"
the
other was: "Thank you for your service, we are offering you a contract for a limited
amount of time for X amount of money"
If
they were of the first kind, they were then escorted to their cubicles to remove
personal effects & then escorted out of the building. If they were of the second,
they were allowed to stay, but have to wait to get their security access restored
by the IT group.
Some of the OU's have no more than three to five people left.
I know that Varilease (VLC Detroit) has a total of three regular employees & two
temps.
Keystone
has two, Jacom has three.
Not
sure about the others, Boulder, HLC, etc. We have been told that the portland
group is remaining to service all cash, customer service & collections, and has
restructured to keep everyone working effectively.
Mr.. Hudspeth has been in New York alot as of late, "meeting with Lawyers" is
all we are told, but since this is a small office, it has been overheard that
UOG-Portland will become a separate legal entity with a new name by the 20th of
November, and that UCP itself is declaring BK by the 15th of Nov.
If you choose to post any of this info, I respectfully wish to remain anonymous.
Mark Speros
As
we end this week, what I remember most in our industry is Mark Speros's E-Mail.
I thought about it going to bed, and always when I woke up. I used to send him
deals at Denrich over 20 years ago and have worked with him for many years, getting
to know him. Heis one of the best credit men in the industry, who also has the
rare ability to "sell" and acquire relationships ( most credit people are not
extroverts, in my opinion, and leave selling to the sales people ). Mark is unique.
He is very talented.
He shouldn't be treated this way.
If you did not read his departing e-mail the first time it came out, I would like
to bring it to your attention to think about this weekend. His new e-mail address
is:
MSPEROS007@AOL.COM
TO MY FRIENDS IN AND OUT OF THE LEASING INDUSTRY
Unicapital
has, in it's infinite wisdom, decided to close the office of BSB Leasing, effective
at 9:00 AM today. Some of the employees are being put on "Administrative Lease"
(with pay) for a limited (unknown) time. Five of us (yours truly included) are
being FIRED (why they chose to use that term rather than "laid off" or some other
term without the negative connotation I don't know) effective today. I hope they
give ME as a reference sometime...I'll bury them.
While I could probably retire (if I don't eat and just live off the fat of the
land), I'd go nuts sitting around the house, so it's back into the job market
for me. If someone asks if you want to "Super Size" your meal, take a close look...it
could be me.
If you would like to keep in contact, here is some contact info for you:
ADDRESS:
2566 W. 110th PLACE
WESTMINSTER, CO 80234
PHONE: 303-439-2206
CELL
PHONE: 720-231-2567
E-MAIL: MSPEROS007@AOL.COM
I want to thank you all for your friendship and support over the years. It truly
means a lot to me, especially at this time.
Best
of luck to you all.
Mark
Speros
FORMER Unit Credit Manager
303-329-0227 Ext. 247
Finova Suspends Quarterly Dividend
Financial services company the Finova Group said its board voted to suspend the
company's quarterly common stock dividend, as Finova shifted its strategic direction.
The Scottsdale, AZ-based company had paid a dividend of 18 cents per share in
the previous quarter.
"Finova has begun to implement a new strategic direction that will focus on core
specialty niche businesses," Chairman John Teets said in a statement. "Suspending
the quarterly dividend is one element of our multi-pronged approach to improve
liquidity and strengthen the company as we move forward. Other elements include
potential divestiture of certain business units and reduction of operating expenses."
Orix Net Profit in First Half Up 14%
Orix said its group net profit for the first half ended Sept. 30 rose 14% from
the same period a year ago to Y17.05 billion mainly because of a fall in its fund-raising
costs, and securities and asset valuation losses.
In recent years, Orix has
diversified its operations from its main leasing business to life insurance, securities
broking and venture capital, among others. Group revenues dropped 5.6% to Y289.10
due to the continued slump of the economy. Revenues at its general financing,
securities broking and life insurance divisions fell, while those at the operating
lease and real estate-related financing businesses grew, Orix said.
The drop
in revenue was offset by a 7% cut in its group operating costs to Y260.34 billion,
due mainly to a reduction in valuation losses for its securities and other long-term
asset holdings, the leasing company said. As a result, Orix's group operating
profit grew 7.7% on year to Y28.76 billion, while pretax profit rose 15% to Y29.39
billion.
On a parent basis, Orix's pretax profit rose 6.1% to Y5.67 billion
despite an 8.0% decline in revenue to Y329.55 billion. Parent net profit was up
13% at Y3.87 billion.
For the full fiscal year through March 2001, Orix forecasts
group net profit of Y35.6 billion on revenue of Y580 billion and pretax profit
of Y60.80 billion. In the previous fiscal year, it posted group net profit of
Y30.64 billion on revenue of Y616.51 billion and pretax profit of Y52.05 billion.
The company plans to keep a Y15 annual dividend. The leasing company's group earnings
results are based on U.S. accounting rules.
Orix
- Tokyo
54 Leasing Companies Major Changes
Affinity
Leasing, Washington ( 12/2000 to close )
American Business Leasing ( gone
)
Balboa Capital ( Founder Byrne "...office available any time he wants to
use it" ). The Bancorp Group, Inc. (Southfield, MI) (Not
accepting news business. The BOD of the parent bank is assessing what to do with
the leasing subsidiary.....currently servicing portfolio but not originating.
no longer in business )
Bankvest (bankrupt)
Bombadier ( reported having
problems, not confirmed )
BSB Leasing (11/2000 closed to accepting new buisness
)
Charter Financial ( purchased by Wells Fargo 9/5/2000 )
Colonial Pacific
(11/98) purchased by GE Capital 5/2000 no more re-brokered applications, except
from one or two sources, such as Steve Dunham's Leasing
Associates )
Commerce Security ( 9/99 closed to leasing broker program )(11/99
last fundings)
Comstock Leasing ( 3/2000 Unicapital then Linc and discontinued
operation this date )
Copelco ( 4/2000 sold to Citibank/10/2000 stock down
rated/10/2000 ceases broker business, many complaints
in manner turning off faucet )
Creative Capital" of Bloomfield Hills, MI.
( shut-down 3/2000 )
Dana ( sold off, active as captive )
DVI Capital
( out of broker )
El Camino Leasing, Woodland Hills, Caifornia (10/2000 No
longer taking broker business )
eLease ( June/July/2000 senior management
changes )
FMA Finance ( reportedly closed to brokers )
Fidelity ( 4/2000
acquired by EAB, a wholly owned subsidiary of ABN AMRO Bank N.V., headquartered
in the Netherlands, raising funds )
Finova ( out of
market place )( 10/11/2000 Dow Jones headlines "Finova Stock Falls As Buyout Hopes
Wane 10/25/2000 Dow Jones notes stock falling and problems at Finova 11/3 Announces
they will discontinue business, sell units 11/20 Suspends
Dividend ))
First State Bancorp, Albuquerque, N.M ( 3/2000 sold leasing division-$64
million---)
Franklin Leasing, Des Moines, Iowa--owned by Liberty Bank-- (2/2000)-no
longer writing leases ( limited by regulations and leases
are for sale ).
Franchise Mortagage Acceptance Corporation (FMAC) 11/1999
purchased by Bay View Commercial Corporation (Bay View Bank) 9/2000 discontinuing
all franchise loan and lease production.
Golden Gate Funding ( 2/99 purchased
by Westover Financial )
Heller Financial's Commercial Services Unit ( 10/99
purchased by CIT )
Imperial Credit Industries (ICII) ( sold portfolio ) Japan
Leasing Credit claims ( JLC --6/99 purchased by Orix )
Lease Acceptance Corp---( ceases broker business 7/26/2000 )
Leasing Solutions
( bankrupt )
Liberty Leasing ( closed, California company )
Linc Capital
( out of vendor and broker business, Nasdaq halts stock sales, $13.4 loss last
quarter,10/2000 assets for sale )
Lyon Credit Corporaton
( 9/99 purchased by Hudson United Bancorp )
Manifest Group--( 9/1/2000 purchased
by US Bancorp Leasing and Financial, "...a win for all the parties involved,"
Brian Bjella.
Matsco Financial ( purchased by Greater Bay Bank )
Merit
Leasing ( gone )
Metwest Leasing, Spokane Wa. ( 9/2000 advising brokers that
they have run out of funds so they are unable to fund
a transaction we have there for funding. 11/2000 Metwest Leasing Spokane, WA.
is pulling the plug, confirmed by five sources. )
Metrolease--reports closing operation,John Blazek at Evergreen Leasing, Hathcock
losing assets, will not confirm nor deny; many serious
rumors of serious fraud floating around the marketplace, including debt to Textron
Financial.)
NationsCredit, Business Leasing Group (1/29/99 sold to Textron**)
*"The Business Leasing Group of Nations Credit was sold to Textron and we still
do broker business," Jim Merrilees, very well respected individual
in the leasing industry..
NIA National Leasing ( 3/2000 purchased by Lakeland
Bancorp )
New England Capital ( sold to Network Capital Alliance a division
of Sovereign Bank. Sovereign did hire two people who will
run a sales office in CT, doing basically the same deals with the same people
as before. Little will change in that aspect.
Newcourt
( sold off )
Onset Capital ( Irwin buys 87% equity )
Orix 10/2000 "long-term
Outlook has been revised from Stable to Negative" Credit Allianchat it has changed
its name to ORIX Financial Services, 9/2000 Japanese Bank
President Committs Suicide (Orix is a 14.7% shareholder
in bank having problems ), ( 8/2000 closes small ticket vendor division in Portland,
Oregon, "Business as usual (in New Jersey and with brokers),"
says Steve Geller 11/8 New President at Orix appointed
11/10 First Six Month Profits up 14% at Orix! )
Phoenix ( both divisions closed
)
Republic Leasing, South Carolina 9/27/2000 ( "The expected result will be
a sale of Republic Leasing"---Dwight Galloway )
Rockford ( sold to American
Express )
Scripp Financial ( 6/29/2000 ( purchased by US Bancorp )
SDI
( closed to broker programs )
SFC Capital ( 9/15/2000 purchased by Trinity
Capital )
SierraCities (11/2000 acquired by Vertical Net Credit )
T&W,
Washington ( bankrupt, lost their listing )
Transamerica ( for sale, but no
buyers, so taken off marketplace, no longer for sale )
Unicapital ( $11.4
million first quarter loss chairman,CEO,CFO resign, 38 employees cutback, BofA
extends credit to November 20, as Unicapital closes down
divisions, not accepting new business, winding down, reportedly
to file bk Nov 15 ).
Varilease ( 11/2000 closed down )
USA Capital Leasing
( gone-bk )
any
corrections, additions, comments will be appreciated. We are presently working
on dividing the list into last twelve months and prior.
Capital Advantage To Be Released Soon, According to John Kruse Co-Founder and
Exec. VP of Strategic Sales of Capital Stream.
Next week Capital Stream will begin distributing the Advantage release to customers
who reserved their advanced copies. We will be staggering the release due to the
large number of customers who will be receiving the update. As we indicated in
the Advantage announcement letter in September, we continue to encourage our users
to let us know if they would like to be included in the early rounds of shipments
of the product by calling 1-800-827-2010. We were hoping to have the original
shipments sent out in October, but unfortunately the release slipped by a couple
of weeks.
As we have discussed with many of you at the recent Association events, Capital
Stream has never been stronger or more committed to supporting this market.
We
truly appreciate your patience and continued support.
Sincerely,
John Kruse
Co-Founder and Exec. VP of Strategic Sales
++ ++ ++ ++ ++
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General Manager 2061 545.9522
2061 545.1273
800/ 827-2010
-
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www.capitalstream.com
e-mail - jfk@capitalstream.com
Direct - 206.548.1603
Cell - 206.660.7273
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