Partners Equity Capital Rumors
In early May, Leasing News started receiving e-mails that Partners Equity Capital, Horsham, Pennsylvania was closing down due to many NorVergence leases. Several e-mails said 40% of their portfolio were NorVergence leases.
According to a deposition of Martin Babicki, Executive Vice President Risk/Operations, which Leasing News has obtained and considers public information, there were about 636 leases (p. 51), 482 of which were not paying (p. 52) and 393 were in suit (p. 52) as of Jan. 6, 2005. Only 25 were continuing to pay, which may have been involved in the Weir Class Action Suit. In addition, there was a $175,000 lease direct to the NorVergence Corporation itself, which may have been a "sale/leaseback." As important, to make this decision, there appears to be no personal guarantee, as per the deposition of Martin Babicki, who also testified he did not know if financial statements were obtained. It was obvious the company had a close relationship with NorVergence officers.
In January, 2004, when they stopped taking more NorVergence leases, 60% of their business was NorVergence leases.
By e-mail and also telephone, Leasing News spoke with several officers, including the attorney representing the company in the NorVergence bankruptcy hearing, Inez M. Markovich.
Donald P. Campbell, Chairman and CEO, Partners Equity Capital Company, denied that the company was in any financial difficulties, had just received the Oki Data Americas account, had another in the works, and was about to announce a new bank infusion.
Campbell told Leasing News ,following their auditors advice, they had written off the NorVergence lease accounts for tax and accounting purposes. Accordingly, it had no major affect to the company's equity position or bottom line. He said it was their policy to attempt to collect all monies owed as it does affect their bottom line. Partners Equity would be active in the law suits, although they were in conversations with the California Attorney General's office at the time. He asked us to hold off on his comments as he was in the middle of signing papers with a major bank; a few weeks.
In early June, the bank announcement would be in a few weeks, still. Last week Leasing News learned the date for the announcement would be September or October, as sent by e-mail from Marc R. Donahue, Senior Vice President, Marketing.
Leasing News for several days last week, and this week, attempted to reach the officers by telephone regarding this event, and for any comment they would like to make about the rumors floating around, but were told by the male operator they were “traveling.”
Here is the web site of the company:
Copy of Depostion: