Equipment leasing and data storage provider Comdisco will receive $450 million in debtor-in-possession financing, allowing the firm sufficient resources to continue to run its businesses as usual, according to chairman and CEO Norm Blake. The Rosemont, IL-based firm received approval for the financing package yesterday from the U.S. Bankruptcy Court for the Northern District of Illinois.
The financing package was provided by a group of banks, led by Citibank, The Chase Manhattan Bank, and Heller Financial. Of the $450 million, $100 million has been reserved to support the firm's international operations, according to the firm.
In related developments, the Bankruptcy Court has scheduled a hearing on August 30 to consider Comdisco's request for competitive auction procedures for the company's IT leasing business in North America, as well as its leasing business structured around specific vertical markets, including healthcare. Comdisco hopes to emerge from Chapter 11 bankruptcy in early 2002.
By AuntMinnie.com staff writersAugust 24, 2001
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