The FINOVA Group Inc. and Leucadia National Corporation Announce Mutual Termination of Securities Purchase Agreement
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Termination of Securities Purchase Agreement
SCOTTSDALE, Ariz. and NEW YORK, Jan. 24 /PRNewswire/ -- The FINOVA Group
Inc. (NYSE: FNV) and Leucadia National Corporation (NYSE: LUK; PCX) announced
today that they have mutually agreed to terminate their Securities Purchase
Agreement dated December 20, 2000. The termination was agreed to after it
became evident that the parties would not likely conclude a restructuring
agreement with FINOVA's bank lenders and public debt holders on terms deemed
mutually acceptable to FINOVA and Leucadia. FINOVA intends to continue
working with its creditors and anticipates presenting a revised restructuring
plan in the very near future. As previously noted, it is expected that
substantially all of the company's lenders will have to agree to this
restructuring to avoid the possibility of reorganization under protection of
the courts.
The FINOVA Group Inc., through its principal operating subsidiary, FINOVA
Capital Corporation, is a financial services company focused on providing a
broad range of capital solutions primarily to midsize business. FINOVA is
headquartered in Scottsdale, Ariz., with business development offices
throughout the U.S. and London, U.K., and Toronto, Canada. For more
information, visit the company's website at www.finova.com.
Leucadia National Corporation is a holding company for its consolidated
subsidiaries engaged in property and casualty insurance (through Empire
Insurance Company and Allcity Insurance Company), manufacturing (through its
Plastics Division), banking and lending (principally through American
Investment Bank, N.A.) and mining (through MK Gold Company). Leucadia also
currently has equity interests of more than 5% in the following domestic
public companies; Carmike Cinemas, Inc. (6% of Class A Shares), GFSI
Holdings, Inc. (6%), Jordan Industries, Inc. (10%) and PhoneTel Technologies,
Inc. (7%).
This news release contains forward-looking statements such aspredictions
or forecasts. FINOVA and Leucadia assume no obligation to update those
statements to reflect actual results, changes in assumptions or other factors.
The forward-looking statements are subject to known and unknown risks,
uncertainties and other factors that could cause actual results to differ
materially from those projected. Those factors include FINOVA's ability to
address its financing requirements in light of its existing debt obligations
and market conditions; pending and potential litigation related to charges to
earnings; the results of efforts to implement FINOVA's business strategy,
including the ability to complete a debt restructuring; the ability to attract
and retain key personnel and customers; conditions that adversely impact
FINOVA's borrowers and their ability to meet their obligations to FINOVA;
actual results in connection with continuing or discontinued operations; the
adequacy of FINOVA's loan loss reserves and other risks detailed in FINOVA's
SEC reports, including page 15 of FINOVA's 10-K for 1999.
SOURCE The FINOVA Group Inc.
-0- 01/24/2001
/CONTACT: Stuart A. Tashlik of The FINOVA Group Inc., 480-636-5355, or
media, Rhonda Barnat or Mike Pascale, 212-371-5999, for The FINOVA Group Inc.;
or Laura Ulbrandt of Leucadia National Corporation, 212-460-1900/
/Web site: finova.com
(FNV LUK)
CO: FINOVA Group Inc.; Leucadia National Corporation
ST: Arizona, New York
IN: FIN
SU: FNC
SR
-- LAW093 --
7067 01/24/2001 14:38 EST prnewswire.com |
