Company Press Release:
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Thursday November 2, 5:41 pm Eastern Time
Press Release
SOURCE: The FINOVA Group Inc.
FINOVA Group Strategic Review Continues; Announces Planned Divestiture of Business Units
SCOTTSDALE, Ariz., Nov. 2 /PRNewswire/ -- The FINOVA Group Inc. (NYSE: FNV - news) today announced that it is continuing its evaluation of strategic alternatives, including alternatives for addressing the company's credit facilities.
``The board, management and the company's investment banker, Credit Suisse First Boston, continue to pursue potential opportunities regarding a sale or significant equity infusion. In addition, FINOVA has begun to implement a new strategic direction that will focus on core specialty niche businesses'', said FINOVA Chairman John Teets.
Earlier this year, FINOVA sold its Commercial Services and Harris Williams & Co. lines of business, which improved liquidity. Other lines of business are being discontinued and offered for sale, including Corporate Finance, Business Credit, Growth Finance and Distribution and Channel Finance. Proceeds from the divestiture of businesses will be used to enhance liquidity and reduce FINOVA's debt obligations. The company said it is also trimming operating expenses to reflect the disposition of these business units.
Chief Executive Officer Matt Breyne said, ``FINOVA continues to have adequate financial resources to satisfy its obligations and fund operations. Disposition of businesses or assets represents the initial steps of a plan under development for dealing with $1.6 billion of principal payments due in May 2001 under the company's credit facilities. FINOVA has engaged Jay Alix & Associates, a nationally recognized financial consulting firm, to assist in connection with the development of strategic and financial planning, including re-negotiation of its bank debt.''
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