Archive, August 30, 2006
Sunrise International Leasing (SILC), Golden Valley, Minnesota, who's website states they have funded nearly $1.5 billion in lease transactions, is closing down and is selling off its portfolio, according to its "collection manager," who answered the telephone. The company once had 90 employees, and was quite liberal in technology, internet equipment.
This information was discovered when a reader told Leasing News that Sunrise International Leasing on our “story credit” list was no longer a member of the Equipment Leasing Association (readers often point out “errors” in our listings, and our best stories often come direct from our readers. editor) The party who answered the telephone said the two contacts listed no longer worked for the company.
Reached at his residence, at his request, Peter J King, the CEO and “owner” of the company told Leasing News he has been running down the portfolio for a year and a half, from an original $700 million, and has recently made some very good sales from the portfolio.
“Basically, I am 78 and it is time to retire, “he said. “I had a good run. It is time to divest my assets. I have a foundation, other investments, and I want to enjoy more of my life.
” Another reason is the leasing industry has changed for our type of business, where we relied on the ‘fair market value.' ”
He said at one time his company did almost all Sun and Cisco Systems business, including what he called the main Gorilla, GE Capital.
“Sun gave GE Capital their business, but they turned down so many substantial leases that GE Capital became like a vendor to us, referring a lot of the business they did not want to take...we didn't mind be second place at all. We told them we would like to see all their rejects, so they sent them to us.
“In fact, we were also doing a lot of Cisco's marketing, as when they wanted to penetrate a market, they would come to us, we would create a program and then go in and market it to their vendors.”
“Many of the captives at one time did not want ‘operating leases,' but to record the profit right now as a sale...that seems to have changed as more now are willing to take the credit risk and know that a high percentage will go good, making the profit at the end, so they can take a higher risk during the stream.
“We could credit risk the transaction, book the business fast, move the portfolio, and take all the business they could send us.
“It is very difficult today to get a high end volume on fair market value leases from a vendor or manufacturer as they have a lot of cash, and others who have a lot of cash to make the yield work to their favor. It is too tough a marketplace for us today.”
The web site, www.sunriseleasing.com , states:
"In 1973, International Leasing Company (ILC) was founded. ILC specializes in providing equipment manufacturers with leasing and other marketing programs designed to increase sales for the manufacturers. As a pioneer in the vendor leasing field, ILC developed unique marketing products and offerings to meet the needs of its partners.
"In 1989, Sunrise Leasing Corporation was founded. Sunrise specialized in the leasing of data processing equipment including computers, telecommunications products and point-of-sales systems.
"In 1995, the Companies merged, capitalizing on their combined strengths. In 1997, the company was reincorporated under a new name, Sunrise International Leasing Corporation. This name change occurred to better represent our past and to position us for the global opportunities available in our future.
"Today, Sunrise works with the largest worldwide manufacturers of computer and networking systems, providing customized private label marketing-oriented leasing programs. With our experience, Sunrise is capable of designing a leasing program guaranteed to increase sales.
"To date, Sunrise International Leasing has funded nearly $1.5 billion in lease transactions."
The last press release on the web site is for the fourth quarter and fiscal year ended December 31, 2003, references Peter J. King, of King Capital Corporation, Golden Valley, Minnesota.
It states, "Sunrise International Leasing Corporation (SILC), a wholly owned subsidiary of privately held King Capital Corp."
It also states, "Both fourth-quarter and full-year revenues are down considerably from the comparable 2002 periods due to the current down-cycle in technology leasing. The company is encouraged, however, by recent activity in its niche market, which has allowed for business stabilization and a focus on longer term growth."
A press release dated May 9,2002 gave recognition to the company being “ranked first in growth and second in sales per employee productivity in City Business's recent survey of Minnesota's 100 largest private companies...$2.8 million in sales per employee...”
King Family Foundation highlights:
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Judge Appoints Charles Schwartz Choice of Chapter 7 BK Trustee
More attorneys representing many banks and leasing companies have acknowledged Notice of Appearance and Request for Service of Notice Allied Health Care Services, Orange, New Jersey Involuntary Chapter 7 hearing to September 7, 2010, 12pm. Courtroom 3A, MLK, Jr. Federal Building, Newark, New Jersey. Objections to be received no later than September 3, 2010, 11am.
Charles K. Schwartz, President, Allied Health Care Services, Inc. has recognized the proceedings, which means all non-exempt property of the debtor is sold and the proceeds of the same are distributed to the creditors. Under Chapter 7 Bankruptcy, the debtor receives a discharge on all dischargeable debts.
This does not stop the 23 court cases where Charles K. Schwartz is named as a personal guarantor, and most likely will result in his filing bankruptcy, nor the case from De Lage Landen naming Bruce Donner and Donner Medical, or the FBI investigation (no. 24.)
If the personal financial statement of Schwartz shows the company net worth is $16,990,584 as his September, 2009 shows, and there is over $75 million debt with his personal guarantee, not counting if the equipment on his statement exists or does not exists, or its real true value, or difficulty that asset managements are certainly going to experience, there is no doubt a personal bankruptcy will happen before the end of the year.
His wife Marilyn was not an officer of the corporation nor did she sign personally as a guarantor of leases. In the Sun National liens, her house was not included, it was reported.
Whether there are criminal charges against Charles K. Schwartz or the vendor Bruce Donner is not known at this time, or whether Donner turns a plea and provides evidence for a lesser sentence is speculation at this time.
Charles K. Schwartz request:
"The Debtor requires the assistance of counsel in this case. The Debtor wishes to retain Stern, Lavinthal, Frankenberg & Norgaard, LLC (“SLFN”) of 184 Grand Avenue, Englewood, New Jersey 07631. The Debtor wishes to employ SLFN because its experience and expertise in bankruptcy matters.
"To the best of applicant's knowledge, SLFN has no prior connection with the Debtor, any creditor of the Debtor or any other party in interest, or their respective attorneys or accountants, and neither holds nor represents any interest materially adverse to the Debtor, the Creditors or the estate. To the best of applicant’s knowledge, SLFN is a “disinterested person” within the meaning of 11 U.S.C. Sec. 101(14).
"compensation for its services at the following rates:
“On or about August 24, 2010, after the filing of the involuntary petition for bankruptcy relief against the Debtor, the Debtor and proposed counsel agreed that proposed counsel would represent it in the above-captioned case according to the billing rates set forth above. The Debtor provided Proposed Counsel with a retainer deposit of $25,000.00.
/s/ John O’Boyle
Charles K. Schwartz Appoints:
Judge Morris Approves Choice:
((Please Click on Bulletin Board to learn more information))
Proposed Accounting Standards Update for Lessor’s
Many of the changes require final confirmation and the leasing industry has until December 15th to make additional comments. The real problem with changing their minds come from the international nature of the changes and the fact that most countries involved in leasing will now all be using the same accounting rules. That means that any changes in this proposal must have international backing and there does not seem to be any movement in that direction.
It will take some time for a complete understanding of the impact of these changes and a clear understanding of the number of years that will need to be redone for comparison analysis but be prepared for a lot of accounting work.
The proposal states that they expect it to be implemented in 2011. I believe many lessor’s are going to adopt the new accounting standards as of the first day of their new fiscal year so as not to have to restate if the proposals are adopted next year for that years GAAP.
Gone are the four types of leases for lessor accounting as they are being replaced by two categories, a performance obligation or a “derecognition” approach. The proposal changes also do away with special accounting for leverage leases.
“At the date of inception of the lease, a lessor shall assess whether a lease is accounted for in accordance with the performance obligation approach or the “Derecognition” approach on the basis of whether the lessor retains exposure to significant risks or benefits associated with the underlying asset either:
(a) during the expected term of the lease; or
However the proposal does not explain “what” risks or benefits are to help the accountant make a decision. I expect bargain purchase options will continue to be a significant factor as will the absence of residuals and triple net leasing.
“If a lessor retains exposure to significant risks or benefits associated with an underlying asset, the lessor shall apply the performance obligation approach to the lease. If a lessor does not retain exposure to significant risks or benefits associated with an underlying asset, the lessor shall apply the "derecognition" approach to the lease. A lessor shall not change the lessor accounting approach after the date of inception of the lease.”
Performance obligation approach:
“The lessor shall measure the right to receive lease payments at the sum of the present value of the lease payments; discounted using the rate the lessor charges the lessee, and any initial direct costs incurred by the lessor and the lease liability at the amount of the right to receive lease payments.”
If the lease is on a variable payment subject to a “per unit of use”, or other criteria then the lessor must assume an expected outcome. The expected outcome is the present value of the probability-weighted average of the cash flows for a reasonable number of outcomes.
The balance sheet will reflect the present value of the rent stream plus all expected fees and penalties as a right to receive lease payments and a lease liability. The leased asset will go into assets and be straight-lined over its useful life to the lessor with nothing on the liability side of the balance sheet if the lessor paid cash for it. If money was borrowed to purchase the asset then there would be a liability.
Initial Direct costs are defined as:
Recoverable costs that are directly attributable to negotiating and arranging a lease that would not have been incurred had the lease transaction not been made.
The following items are not initial direct costs:
At the date of initial application, a lessor shall:
This is basically the same as the old direct finance lease!
Mr. Terry Winders, CLP, has been a teacher, consultant, expert witness for the leasing industry for thirty years and can be reached at firstname.lastname@example.org or 502-327-8666.
He invites your questions and queries.
Previous #102 Columns:
(This ad is a “trade” for the writing of this column. Opinions
Leasing Industry Help Wanted
Please see our Job Wanted section for possible new employees.
Story Credit Lessors
These companies specialize in "C" and "D" credits, often new businesses, or businesses where the principal(s) have Beacon score around 600 or previous difficulties; meaning to become comfortable with the credit and financial situation you need to learn the "story" to make a positive decision, often requiring further security, shorter term, or additional guarantors. Many of these companies may also have programs for “A” and “B” rated companies, but their specialty is not being a “cookie cutter” and often require full financial statements and tax returns as well as a “story about the company, its history, goals, circumstances” to fully understand the full financial picture.
Also listed below the dollar amounts are companies that who are known for accepting "subprime leasing."
There are many lessors with non-recourse lines and sources as well as brokers who sub-broker transactions, which is common in the industry. The categories are based on leasing association categories and to make the funder list banks and/or investors are confirmed.
To qualify for this list, the company must be a funder (as qualified by Leasing News and on the “Funder List” and not a "Broker/Lessor" or "Super Broker/Lessor", along with an acceptable Better Business Bureau Rating and no history of complaints at Leasing News. We reserve the right to not list a company who does not meet these qualifications.
Business Reports: Companies listed may make any netiquette comment about their company or reports or other information in the footnote section of their listing. Leasing News recommends readers also view the footnote as well as the section itself or searching reports on the business.
It also should be noted that if a BBB report listing is found by a reader, as there may not have been one when this was last up-dated, please send the link to email@example.com so Leasing News may up-date this section.
BBB - Better Business Report | CBB - Leasing News Complaint Bulletin Board
(A) Pawnee Leasing Corporation; Some times we go higher than $30,000, but our marketplace is from $1,000 to $30,000. Broker Qualify - One year time in business
* Allegiant Partners has expanded their maximum transaction size from $250,000 to $500,000 for the 5 western states of California, Oregon, Washington, Nevada and Arizona.
(D)ABCO Leasing, Inc. (Seattle, WA) exclusively serves the broker community and has been in business since 1974. Since we retain all transactions in our own portfolio, we require full financial packages. We are best at deals that do not quite fit an “A Funder” due to a lack of flexibility or some type of an arbitrary matrix requirement. ABCO is an industry generalist that prides itself on being creative when structuring new business and in providing high quality service levels. Broker and deal contact: Brad Christensen, Broker Relations Manager, 971/204-0236 firstname.lastname@example.org
(G) Cobra Capital LLC. Comments: Our registered trademark "Solutions that work" is our designator of origin and central marketing identity for both strong and weak credits. In addition to funding strong credits, we have also developed a 14 year history, (from Cobra and my prior company GALCO), with funding specialty, non-conforming transactions and have a solid reputation for candidly responding to our originators and lessees and working diligently to mitigate deal risk rather than making excuses to turn deals down. Our originators prefer our underwriting approach to non-conforming transactions since unlike most non-conforming funders, we prefer to mitigate risk versus jacking our return. Both Originators and Lessee's prefer our candid approach as we are also frequently asked to advise lessee's and lessors on the best way to structure their bank loans and raise capital due to our 30+ year banking and accounting backgrounds as my partner and I are both former bankers and CPA's.
(I) Standard Professional Services. LLC is a non-cookie cutter funder who does not credit score.
(J) Boston Financial & Equity Corporation, most of our leases are venture capital backed startups and turnarounds. We require full financial disclosures, CPA and internal statements, no tax returns. We do not required additional collateral, no PG's or RE needed. Do not send deals with large tax liens, especially if they are payroll taxes. Broker Qualify - A deal in hand and a full package.
(P) Financial Pacific Leasing supports a nationwide network of Brokers and Lessors. We specialize in "B" and "C" credits for established companies as well as companies under two years in business. Broker Qualify - Please Call or see "Prospective Broker" section on website
(Q) American Leasefund, Inc. funds small hard to do transactions under $50,000.00. Most of the transactions are "app only". We look for additional collateral or larger first payments to help the weaker credits. We maintain and service our own portfolio. All of our lessee billings are done via ACH. Broker Qualify - Please Call
(S) We at Summit Leasing consider ourselves to be primarily "B" credit lenders, working almost exclusively through brokers. Broker Qualify - Contact us
(V) Agility Solutions; we fund all equipment used by Wireless Internet Service Providers.
(W) Forum Financial Services, Inc., prefer venture capital backed start-ups and middle market to large corporate turnaround companies including companies in bankruptcy and post bankruptcy. Our absolute minimum sales for an established business with financial problems are $10.0 million. (this does not include venture capital backed start-ups). Broker Qualify - Please visit our website at www.forumleasing.com or call 972-690-9444 ext. 225
(X) Advantage Funding - While we also consider quality equipment leasing as a funder, in the title vehicle leasing business, we consider all types of situations and credits and speciality vehicles for commercial use. We have a history of understanding all types of title vehicle leasing. Broker Qualify - Please Call
(Y) Gonor Funding specializes in hard to fund leases with D credit. Collateral based with good rates and commission program. Broker Qualify - Please Call
(Z) TEAM Funding Solutions is a structured lender for brand new businesses or for older companies with previous credit problems. We do not credit score. The secret to producing an approval for C-Credits starts with interviewing your customer." Broker Qualify - Click here for Broker Enrollment Form.
(AA) Calfund, LLC finances 18 wheelers and some trailers for owner operators with substandard credit.
(CC) Specializing in Machine Tools only for transactions up to $750k. National has been in the Machine Tool Finance business since 1986 and has a leasing proficient staff to accommodate the most challenging transaction. F ull financial disclosure required. We can provide structured financing for the story marginal credits. May require personal guarantees and/or down payments depending on the credit. Any size business accepted. For more information please contact Chris Chiappetta or Robert Lang at 800-669-7527.
(DD) Maxim Commercial Credit provides creative and flexible asset-based financing for today's challenging credit market.
(EE) BSB Leasing, Inc. is a direct funding source. In addition we offer an experienced Syndication Desk that can place transactions that fall outside of credit, equipment, geographic or dollar amount appetite.
Top Stories---August 23-August 27
Here are the top ten stories opened by readers:
(1) Alert--GMD Founder is Back!
(2) Allied Health--A Bizarre Story: $50MM & climbing
(3) Balboa Capital Settles w/five DC Churches Lawsuit
(4) Leasing 102 by Mr. Terry Winders, CLP
(5) Madison Capital Joins “Back Office List”
(6) BSB Leasing Joins the Funder List
(7) 22-year-old Mexico woman crowned Miss Universe
(8) ELFA July MLFI is Misleading
(9) Bulldog Changes Name & to move to new HQ
(10) Bank Beat---
Buffalo, New York ---Adopt a Dog
Retriever / Collie / Mixed (medium coat) :: Female
“Bubbles and her brother Booker came from the local SPCA after the shelter filled beyond capacity just before the July 4th weekend. To help them clear space, Buffalo Humane took these two lovely pups. They were getting a bit stressed in the kennels anyway, and they are now having a blast in foster care, romping with the rest of the dog pack there.
“Bubbles is very loving, and she's quite the ‘wiggle-worm’. She loves to play, and like her brother, is quite a bouncy pup. Both dogs love to romp with the rest of the dogs at the house (there are 11 total), and they are getting some critical socialization with other dogs.
“Bubbles has pretty high prey drive, and seems to have the stronger herding instinct (compared to her brother). She fixates on the cat, and hits her "roundup-dog" pose. She may have a bit more of the Border Collie mentality when it comes to little critters (including cats).
“Bubbles really is looking for someone who can give her one-on-one attention. She's ready to start basic obedience training, and we know she'll be fabulous at it! Are you the person who can give her the right start in life? If so, we know she'll grow to be the most amazing and loyal companion.
“If you would like more information about Bubbles, please contact her foster mom, Carol, by email at carol @ tutzauer.com. Carol can tell you more about Bubbles, how she's being cared for, and even arrange for you to meet her.”
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Adopt-a-Pet by Leasing Co. State/City
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Major Hurricane to Hit East Coast Labor Day Weekend
Chinese Industrial Bank's Financial Lease Company Receives License
NYC Mosque big owes 224G tax
Economists agree: Stimulus created nearly 3 million jobs
Bernanke Tries to Manage Expectations of Fed Role
Mortgage brokers are becoming a vanishing breed
Denver airport breaks ground on new rail line to downtown
'Modern Family' scores best comedy Emmy
Hitmen Kill Mexican Mayor In Drug War State
Japan ends USA's five-year reign to win Little League WS title
49er Rookie Iupati is the hole package
Oakland Raiders QB Jason Campbell has injured wrist, too
Purdy: Did San Francisco 49ers win over Oakland Raiders mean anything?
Many feel effects of state budget delay
Unemployment trends for every city in California
Trio of retired Bay Area police chiefs join forces in new business venture
The Soulful Side of Bordeaux
Sonoma Growers Renew Winegrape Commission
Napa Valley Vintners Kick Off Harvest 2010 in Style!
Putting the screw on wine corks
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This Day in American History
1637- The first Synod was held at Mr. Shepard's church, Cambridge ( then Newtowne), Massachusetts to condemn the preaching of Anne Hutchinson, the first female religious leader in the American colonies. Eight-two errors in her teachings were enumerated and condemned. The synod adjourned on September 22, 1637. Hutchinson was bought to trail on the strength of this condemnation and was exiled from the Massachusetts Bay Colony. Moving the following year to Rhode Island, then to New York, Anne and her family were killed by Indians in 1643.
****In New Hampshire, a band of four hundred men, suddenly assembling in arms, and conducted by John Sullivan, an eminent lawyer and a man of great ambition and intrepidity, gained possession by surprise of the castle of Portsmouth, and confined the royal garrison till the powder-magazine was ransacked and its contents carried away.
Extremely controversial in his day, Somersworth's John Sullivan became the first "president" of New Hampshire. He served three terms in the role we now call governor. Sullivan cut his teeth as a young lawyer in Portsmouth, NH and became the first attorney in Durham. His goal in life was to be wealthy and his litigious pursuit of debtors in his hometown led to angry mobs surrounding his house. He served courageously, some say brazenly, in Revolutionary War battles, though he had been a friend of exiled British NH governor John Wentworth, whom he later replaced. Captured by the British, Sullivan became a courier between the two sides for which he was severely criticized. Sullivan joined the Seacoast NH uprising at Fort William and Mary in 1774, then served in a number of failed battles. George Washington was not fond of Sullivan, but called on him often. Major General Sullivan was among the troops at Quebec, and a leader at Trenton, Brandywine and Germantown. Washington called on him again in 1779 to literally wipe out all Native American settlements that threatened colonists in New York and Pennsylvania. Sullivan's March, as it was called, devastated Indian populations there as his troops destroyed all native housing and crops. He served in both the first and second Continental Congress. After the war he returned to his law practice and was made a federal judge, though he was often too ill, often from alcohol, to serve. The NH town and county of Sullivan are among the many places dedicated in his name.
William (Sugar) Wallace
Catfish, Mudcat, Ducky, Coot.
Greasy, Sandy, Muddy, Rocky.
The Georgia Peach, The Fordham Flash,
The Little Professor, The Iron Horse. Cap.
Fat Jack, Black Jack, Zeke, Zack. Bloop.
Three-Finger, No-Neck, The Knuck, The Lip.
King Carl, The Count. The Rope, The Whip.
Baby Doll, Angel Sleeves, Pep, Sliding Billy,
Famous Amos. Rosy, Rusty.
Old Folks, Old Pard, Oom Paul. Yaz.
The Splendid Splinter. Pruschka. Sparky.
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