Leasing News

A spokesman for Relational Technology Solutions, Rolling Meadows, Illinois could not confirm nor deny that the company founded in 1990 with 360 employees, revenues of $325,000,000 was being sold, perhaps even closing down.

"I have not read anything on your web site regarding the impending sale of Relational Technology Solutions to MacQuarie it has been announced to the all of the employees of RTS. Are you aware of it?" (name with held)

"Some if not all were sent a letter in the mail that their last day with the company would be October 1 or 15 - sales guys are supposed to be interviewing with MacQuarie to see if they are needed most admin will be let go as i understand it.." (name with held)

Asked if a statement would be coming from Relational Technology Solutions, Leasing News was told "sorry, can't confirm that or deny that."

Sheldon Player---new "Alert"
by Christopher Menkin

Sheldon Player in bottled water business

In several Leasing News' "Alerts," readers were warned that Sheldon Player was back as Equipment Acquisition Resources (EAR), Palatine, Illinois. Asked at the time in a telephone interview, if most leasing companies who were leasing to him, and also leasing equipment from his company as a dealer, knew of his background, he said 75% did. All the ones I spoke to did not. His wife was the president at the time, and Player said he was moving to Wyoming. This was in May, 2007.

In the latest deposition, Sheldon Player states the money from Red Oak Acquisition receivables was needed because his company Equipment Acquisition Resources (EAR) was about to default on leases. This was over $2 million and evidently the dispute has caused defaults at EAR. No one seems to be talking "on the record."

From a funder:

"I am surprised since he has hired a group of attorneys and workout specialists, at exorbitant cost to the company, to present a preposterous workout proposal to creditors. My company is a secured creditor and has been advised our equipment is not critical to the continuing operation of the company, but we should wait for a year or more to allow them to liquidate it in an orderly manner to the benefit of the company and all creditors. During this period we would not receive any payments. The company advisors are threatening bankruptcy if any creditor objects to the proposal.

"I have indicated my displeasure with the proposal and requested they surrender our equipment to us for disposition. The advisors have advised "EAR is not in a position to return the equipment at the present time." I do not know why since it is non-essential to the operation and considered surplus.

"Reading through the proposal it is clear it is not truly in the best interests of the creditors who are being asked to sit tight for an unknown period of time while EAR attempts to liquidate surplus equipment in an orderly manner.

"I was essentially forced to sign a confidentiality agreement to obtain even the smattering of info I got. I am sure all other creditors are in the same situation."
(name with held)

EAR web site states:
"We are the largest On-Hand supplier of dicing saws, lapping and polishing machines, ID and OD saws, wire saws and various other pieces of equipment related to the semiconductor industry. Our remanufactured equipment out-performs even new machines in finishing accuracy and attainable material thinness."
http://www.eartechnology.com/

Sheldon Player, promoter of Jackson Hole bottled water, selling distribution right, was the actual owner of EAR, who also served time in jail for $79 million taken from Greyhound Leasing & Financial Corp., at the time of the last telephone interview said he had done of $130 million in leasing. What lead to the interview and discovery, false income tax returns caught by Don Blody, now with Madison Capital.

Then in evidently a move to create cash Equipment Acquisition Resources, he got involved in the stock purchase of Red Oak Acquisition, assigned receivables and then it gets involved including venue for action, as it seems one party believes it was a scheme to get cash. Red Oak filed first and then EQUIPMENT ACQUISITION RESOURCES, INC., an Illinois limited liability company, DONNA L. MALONE, Individually, and MARK
ANSTETT, Individually,
Plaintiffs,
v.
RED OAK FUND ACQUISITION
FUND V, LLC, a Texas limited liability company,
Defendant.

In a recent court document a April 7,2009 email from Shelton Player states: "We need $1.9 million for the next two weeks. The largest share is for lease payments and S1 Audio. We are starting to get late and have asked for grace periods with some companies…"

If any reader has any information to forward, it will be held "in the strictest of confidence" in sharing with other readers.

Copy of DEFENDANT RED OAK ACQUISITION FUND V, LLC'S REPLY
MEMORANDUM OF LAW IN SUPPORT OF ITS MOTION TO CHANGE VENUE (contains Sheldon email: )
http://leasingnews.org/PDF/Sheldon%20Player.pdf

Previous stories:
http://www.leasingnews.org/Conscious-Top%20Stories/Sheldon_Player.htm

ELFF Confidence Index slips slightly

The Equipment Leasing & Finance Foundation (the Foundation) released the September 2009 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) which "Overall, confidence in the equipment finance market is 53.8, a slight dip from 54.9 in August."

When asked about the future of the equipment finance industry, Roland Chalons-Browne, President, Siemens Financial Services stated "In general, [I feel] positive about the industry. We are actually seeing a significant decrease in activity as firms continue to focus on capital preservation and de-leveraging."

From the Small-ticket segment:
"The industry will likely experience a challenging future (along the overall financial sector) over the next 1-2 years led weak growth prospects, limited access to capital and funding and excessive credit losses."
Daniel Dyer, Marlin Business Services

From the Middle Market segment:
"The industry will remain challenged until the economy reaches a stabilization point. The loans and leases remain under pressure. The collateral value of the assets under lease/finance continue to decline. I don't think we have seen the bottom in equipment values."
Elaine Temple, BancorpSouth Equipment Finance

From the Large-ticket segment:
"Tough sledding the rest of this and into 2010. Let's see where and how we feel by the end of the first quarter next year."
David Fate, AIG Commercial Equipment Finance

Survey Respondent Demographics:
Responses to company demographics may add up to more than 100% because respondents are able to "select all that apply."

Market Segments Based on Transaction Size of New Business Volume
Large-Ticket
(New Business Volume Avg. Transaction Size Over $5 Million) 14.3%
Middle-Ticket
(New Business Volume Avg. Transaction Size of $250,000 - $5 Million) 52.4%
Small-Ticket (
New Business Volume Avg. Transaction Size of $25,000 - $249,999) 28.6%
Micro-Ticket
(New Business Volume Avg. Transaction Less Than $25,000) 4.8%

Organization Size (Based on Annual New Business Volume for Fiscal Year 2008):

Respondents indicate:

o The majority of the leadership, 72.7% continue to evaluate the current U.S. economy as "poor."

o When asked to assess if their current business conditions would remain the same over the next four months, 25% of executives responding said they believe business conditions will improve over the next four months. 68.2% believe conditions will stay the same over the next four months, with 3.8% indicating they believe business conditions will worsen over the next four months.

o 61.4% of survey respondents believe demand for leases and loans to fund Capital Expenditures (Cap Ex) will remain the same over the next four months. 27.3% believe demand will increase, while 11.4% believe demand for leases and loans to fund CapEx will decrease over the next four months.

Full Report:
http://www.leasefoundation.org/IndRsrcs/MCI/

ELFA-MLFI-25 August Charts on Leasing Business

As predicted by Leasing News, August was down from July, 22.9%, and 35.1% compared to last year. This reflects what Leasing News is being told the small ticket is down from 40% to 60%, depending on the industry, and middle market 30% to 40%, depending on the industry.

The MLFI-25 data illustrate a pattern of stagnant growth in new business volume and at the same time, some deterioration in credit quality," said interim Equipment Leasing and Finance Association President Ralph Petta.

Ralph Petta

"It should come as no surprise to those following the equipment finance sector that it will take some time for troubled portfolios to work their way through the system."