CDSO Bankruptcy Court Extends Comdisco's Exclusivity Period to File Plan of Reorganization to July 31, 2002; Approves Asset Sales
Business Editors
ROSEMONT, Ill.--(BUSINESS WIRE)--April 18, 2002--
Extends Deadline to Allow More Time to Reach Consensual Agreement on
Plan; Approves Sales of Heathcare and Australia/New Zealand IT Leasing
Assets; Company Still on Track to Emerge From Chapter 11 in Late
Summer, 2002
Comdisco, Inc., (OTC:CDSO), announced that today the U.S.
Bankruptcy Court for the Northern District of Illinois approved the
company's request for an extension of the exclusive periods during
which only Comdisco may file a plan of reorganization and solicit
acceptances for that plan. These periods, which had been scheduled to
expire on April 18, 2002, and June 15, 2002, have now both been
extended to July 31, 2002.
Comdisco requested the extension to continue recent productive
discussions with its Creditors' and Equity Committees to reach a
consensual agreement on the proposed Plan of Reorganization. The
company is still on target to emerge from Chapter 11 in late summer of
2002, and stated in Court that it intends to file its Plan of
Reorganization no later than the end of April. The company also said
the extension does not change previously scheduled hearings on its
Disclosure Statement on May 31, 2002, and its Confirmation Hearing on
July 30, 2002, but simply provides more time for discussion among the
debtors and its statutory committees.
Comdisco also announced that the Bankruptcy Court has approved the
sale of the company's healthcare leasing assets to GE Capital's
Healthcare Financial Services unit. As previously announced on April
4, 2002, GE Capital's Healthcare Financial Services will pay Comdisco
approximately $165 million, including assumption of approximately $45
million in related secured debt, for the majority of its healthcare
portfolio. The sale is expected to close by May 31, 2002.
The Court also approved the sale of Comdisco's information
technology (IT) leasing assets in Australia and New Zealand to Allco,
an Australian company specializing in equipment and infrastructure
finance and leasing. As previously announced on April 9, 2002, Allco
will pay Comdisco approximately $44 million for the assets. The sale
is expected to close by June 18, 2002.
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.
Comdisco's operations located outside of the United States were
not included in the Chapter 11 reorganization cases. All of Comdisco's
businesses, including those that filed for Chapter 11, are conducting
normal operations.
About Comdisco
Comdisco (www.comdisco.com) provides technology services worldwide
to help its customers maximize technology functionality and
predictability, while freeing them from the complexity of managing
their technology. The Rosemont (IL) company offers leasing to key
vertical industries, including semiconductor manufacturing and
electronic assembly, healthcare, telecommunications, pharmaceutical,
and biotechnology. Through its Ventures division, Comdisco provides
equipment leasing and other financing and services to venture capital
backed companies.
Safe Harbor
The foregoing contains forward-looking statements regarding
Comdisco. They reflect the company's current views with respect to
current events and financial performance, are subject to many risks,
uncertainties and factors relating to the company's operations and
business environment which may cause the actual results of the company
to be materially different from any future results, express or implied
by such forward-looking statements. The company intends that such
forward-looking statements be subject to the Safe Harbor created by
Section 27(a) of the Securities Act of 1933 and Section 21E of the
Securities and Exchange Act of 1934. The words and phrases "expect,"
"estimate," and "anticipate" and similar expressions identify
forward-looking statements. Certain factors that could cause actual
results to differ materially from these forward-looking statements
include, but are not limited to, the following: Adjustments arising in
the course of completing the analysis of information with respect to
the review of the company's businesses and evaluation of impairment
charges; continuing volatility in the equity markets, which can affect
the availability of credit and other funding sources to the high
technology sector companies in the Ventures portfolio, resulting in
the inability of those companies to satisfy their obligations in a
timely manner and an increase in bad debt experience beyond current
reserves; continued consolidation in the telecommunications industry
and curtailment of the growth plans of the remaining companies in that
sector, which could result in fewer buyers and reduced prices for
available Prism assets, and a further reduction in the proceeds
actually received from the sale of those assets compared to prior
estimates and an increase in the losses associated with the
discontinued operation. Other risk factors are listed from time to
time in the company's SEC reports, including, but not limited to, the
report on Form 10-Q for the quarter ended December 31, 2001. Comdisco
disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information,
future events or otherwise.
--30--ym/cgo*
CONTACT: Comdisco
Mary Moster, 847/518-5147
mcmoster@comdisco.com
or
Kekst and Company
Fred Spar or Jeremy Fielding, 212/521-4800
KEYWORD: ILLINOIS
INDUSTRY KEYWORD: HARDWARE MANUFACTURING MEDICAL SOFTWARE
TELECOMMUNICATIONS
SOURCE: Comdisco
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