Tuesday, 27, 2005
Headlines--- Welcome New Readers ######## surrounding the article denotes it is a "press release"
Welcome New Readers
While most who read Leasing News go to the web site first, many still join our mailing list. Our goal is to print daily from Monday to Friday, but most often it is only three or four times a week, so when you are on the mailing list, you are informed that the new edition is available. We go to "press" when we think there is enough equipment leasing news to do so. Readers on our mailing list also get notices of major events from time to time. We welcome the new readers and hope you enjoy and find informative Leasing News. ------------------------------------------------------------ Classified Ads---Operations Orange County, CA . East Windsor, NJ. Resume New York, NY. Wayne, NJ For a full listing of all "job wanted" ads, please go to: http://216.66.242.252/AL/LeasingNews/JobPostings.htm To place a free "job wanted" ad, please go to: http://216.66.242.252/AL/LeasingNews/PostingForm.asp
------------------------------------------------------------ More Key Equipment Parsippany News
September 1, Adam Warner, president and COO of Key Equipment Finance Express Leasing Services, made the announcement about the operation of the American Express Parsippany office: "RE: Changes ELS Parsippany "As you know, Key Equipment Finance is in the process of fully integrating the Express Leasing Services (ELS) business and the former American Express Business Finance business to form one cohesive KEF. As part of the continued integration efforts, KEF has decided to further streamline the business by discontinuing the operation Parsippany... "I want to thank all of our Parsippany-based employees for their continued dedication to our vendors and lessees and I am very hopeful that most employees will continue to be with our organization for many years. We will share more information about these operational changes as it becomes available." Leasing News obtained the latest memo, which we do not believe was meant for the public: Key Equipment Finance Parisppany Office Closure Update
Here is the original series regarding the sale of American Express Business Finance to Key Equipment Finance: http://www.leasingnews.org/Conscious-Top%20Stories/Amex_Biz_sold_main.htm ------------------------------------------------------------ NorVergence Lessee Gets Stay-Precedent?
This appears to be the first in many to follow in reaction to the class action suit in New Jersey receiving clearance, and also appears influenced by other decisions. The Honorable Rolando T. Acosta, Supreme Court Justice, Supreme Court of the State of New York decision was filed on September 9th , regarding Sterling National Bank as Assignee of NorVergence, Inc. against P.A. W. of Ocean, Inc. dba PAW of Ocean, Inc., and Paul Wishnick, individually. Judge Acosta "...dismissing the action as there are pending actions involving the same parties and subject matter. "Defendant P.A.W. of Ocean, Inc is a New Jersey Company that lease telecommunications equipment from NorVergence, Inc. a non-defunct New Jersey based corporation, apparently engaged in widespread fraud ( see Office of New York State Attorney General Elliot Spitzer, Press Release, December 6,2004) that is the • The Court has taken judicial notice of the fact the New York State Attorney General's Office negotiated a settlement with GE Capital Corporation, a financing institution, regarding its NorVergence fraud claims, whereby GE Capital will forgive over two million dollars in payments due from New York customers who subject of a Chapter 7 liquidation proceeding in the United States Bankruptcy Court for the District of New Jersey. NorVergence assigned the lease to plaintiff before bankruptcy. "Plaintiff has been named in a class-action in New Jersey, where the plaintiffs are seeking a finding that the financing companies participated in the fraud with NorVergence, and defendant fits squarely within the definition set forth in the complaint in the class-action. Moreover, defendant will undoubtedly be a party to the class-action once that action is certified. In addition, there are two other pending actions in New Jersey dealing with the alleged fraud... Ordered that the instant matter is stayed pending the determination by the New Jersey superior court on whether the New Jersey action will be certified as a class action (September 14,2005 http://www.leasingnews.org/archives/September%202005/9-16-05.htm#norv ) or Federal Trade Commission matter that would impact on this action. Defendant is granted leave to renew that portion of instant motion for an order dismissing the action following the above determination." Attorney for P.A.W. of Ocean - Judge Acosta Ruling : http://leasingnews.org/PDF/Sept9_05_Order_Granting_Stay.pdf ------------------------------------------------------------ Royal Links Golf Course Scandal Up-date
Lord, Bissell & Brook LLP, the Chicago based law firm representing members of the National Golf Course Owners Association states there is a possibility of taking legal action against entities and individuals related to Royal Links in the Bankruptcy Court proceedings. On Friday August 19, 2005, Royal Links USA filed a Voluntary Petition for Chapter 7 Bankruptcy with the United States Bankruptcy Court for the Northern District of Ohio. Royal Links USA Inc., in Springfield Township, reportedly made deals with golf course operators across the country from Jan. 1, 2002, through the end of last year to provide beverage caddies from third-party leasing companies, usually for a 60-month term, according to the suit in U.S. District Court in Toledo. Under the arrangement, the golf course operators could sell beverages and keep the proceeds and would allow Royal Links to display advertising panels from the national sponsors on the carts. Royal Links also was to reimburse the course operators monthly for the lease costs. The carts, however, were being provided by a third party, and when the local firm told the golf operators in October that it no longer would pay the reimbursements, the operators were still responsible for the cart leases, the lawsuit states. Some operators said they were unaware the carts were being provided by another party and would not have signed the deal had they known the lease and the reimbursement weren't linked. Lord, Bissell & Brook LLP is currently evaluating the possibility of taking such action in the Bankruptcy Court case, particularly with respect to funds that may have been transferred from Royal Links to other entities or individuals, according to the National Golf Course Owners Association: ""With respect to the leasing companies, LB&B previously served subpoenas requesting the production of documents relating to the various leasing companies' relationship with Royal Links. However, the filing of Royal Links's Bankruptcy Petition prevents the enforcement of these subpoenas at this time. Lord, Bissell & Brook will, therefore, initiate another round of communications with the leasing companies in hopes of furthering the possibilities of reaching settlements on the lease obligations. Class members should be aware of the ramifications of ceasing lease payments; such action is still precipitating lawsuits against these courses. Some lease companies appear to be unwilling to settle, while others have settled in court. One example is with Junction City Country Club (Junction City, KS) and Landmark Financial. Junction City was responsible for a $7,700 balance under their lease obligation and settled with Landmark for $3,800, although legal fees and other costs added up to more than the savings of the settlement. The attorney who represented Junction City is Ryan Williams, and he can be reached at 303-623-1800. Harold Johnson with Junction City Country Club can be reached at 785-238-1161." These are the eleven leasing companies involved in the alleged fraud with Royal Links. C&J Leasing "Royal Links USA had salesmen call on golf courses to offer free beverage carts. (cold beer, wine, soda's, snacks.) The courses would use them and allow advertising panels to be displayed by Royal Links. Various national merchandisers would pay Royal Links for ads. Royal Links supplied products for free with delivery, and also paid the courses a lump sum (normally $1000) to initially stock the cart with startup merchandise. "Courses entered into an agreement whereby Royal Links paid the course about $300 per month in sponsorship money, which was then sent back to their leasing arm as a lease payment. This arrangement was simply explained as their accounting procedure. "We became concerned initially when it was requested the cart be insured for $12,500. The cost of the cart is most likely less then $1000. "In October 2004, all courses were notified that Royal Links would no longer pay the $300 per month in sponsorship money. Our cart had been delivered about 60 days prior to this notice. The leasing company insisted they were independent and demanded the $300 monthly payment (for 5 years). Preferred Capital quoted a payoff of approximately $15,900." (name with held) ------------------------------------------------------------ Up-Date Leasing Regional Meetings Open to Non-Members
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Top Ten Stories -September 19-23, 2005
(These are not the top best stories or most interesting, but a count by how many readers read the article. The one on top was read by the greatest majority of readers:) 1-Two Corrections: Greene Agreement/BSB Leasing http://www.leasingnews.org/archives/September%202005/9-21-05.htm#correction 2-Gary McLauglin Passes Away http://www.leasingnews.org/archives/September%202005/9-23-05.htm#gary 3-Classified ads---Documentation Manager/Finance/Lega l http://www.leasingnews.org/archives/September%202005/9-23-05.htm#ads 4-Don Flies back as Wehner Brothers Leave BSB Leasing http://www.leasingnews.org/archives/September%202005/9-20-05.htm#bsb 5-Aequitas Capital Management Appoints William Purcell as Chief Operating Officer Portland, Ore. http://www.leasingnews.org/archives/September%202005/9-21-05.htm#acm 6-Butler Capital Joins "Funder Only" List http://www.leasingnews.org/archives/September%202005/9-21-05.htm#funder 7-Welcome New Readers http://www.leasingnews.org/archives/September%202005/9-20-05.htm#welcome 8-Karl Probst---Radiance Capital joins "Story Credit" list http://www.leasingnews.org/archives/September%202005/9-20-05.htm#story 9-Lease Agreement http://www.leasingnews.org/archives/September%202005/9-20-05.htm#lease 10-Gulf States' Leasing Companies Hunker Down http://www.leasingnews.org/archives/September%202005/9-23-05.htm#gulf --------------------------------------------------------------- Classified Ads-----Help Wanted National Program Skills
Salesperson
--------------------------------------------------------------- Top Ten Leasing News Archives---9/19-9/23 The Leasing News archives received over 600 inquiries last week. Web Trend shows these as the most requested last week, most were under ten, but they were the most requested files September 19-23, 2005 NorVergence http://www.leasingnews.org/Conscious-Top%20Stories/Novergence_main.htm Orix Many files searched under name Orix by many persons Skip Wehner http://www.leasingnews.org/archives/September%202005/9-20-05.htm#bsb Capital Stream Many inquiries, no specific file, Brian Bjella http://www.leasingnews.org/Conscious-Top%20Stories/Brian_Bjella.htm Inside American Express Business Finance http://www.leasingnews.org/Conscious-Top%20Stories/Amex.htm Bankers Leasing -The Skinny on Citibank http://www.leasingnews.org/Conscious-Top%20Stories/bankers_citibank.htm (there were other citi stories also viewed, but this was the one most viewed) Yes, It's Gone---GE Capital-Colonial Pacific Leasing Broker Program http://www.leasingnews.org/Conscious-Top%20Stories/Rumors_GE2.htm Tyco International Buying CIT http://two.leasingnews.org/archives/March01/3-13-01.htm SDI Capital -Totalfunding.com http://two.leasingnews.org/archives/June01/6-06-01.htm ---------------------------------------------------------------
--------------------------------------------------------------- Industry anxious about Reg AB ABSnet With the deadline for compliance with the Securities & Exchange Commission's Regulation AB now less than four months away, speakers at IMN's recent ABS East conference voiced varied concerns about whether most issuers will be ready to comply by that time. One speaker even predicted the regulation's Jan. 1, 2006 deadline will cause an issuance rush in the fourth quarter of this year and a relative drought in the first quarter of next year. "Reg AB may be the silent scud missile of this marketplace right now," said Daniel Clarke, managing director with JPMorgan Securities. Clarke said that if larger issuers find themselves unprepared to comply with the regulation going into the last month of the year, they may simply rush to get large volume deals done before year end, so they can afford to hold back on issuance at the beginning of the year, when Reg AB is in effect, until their legal teams can get comfortable with the rule. Mid-to-smaller issuers, however, may not have the option of rushing to get deals done, and may simply have to turn to other funding methods, such as conduits, said Clarke. Both phenomena would sap volume from the market at the start of 2006. Whether or not most issuers are ready for Reg AB is largely dependant on whether the SEC completes its pilot programs with certain issuers and provides the industry with adequate feedback on what it is expecting. "The SEC might give good examples and this might be a non-issue," said Clarke. As part of a separate panel discussion KeyBanc Capital Markets Senior Vice President Craig Platt predicted that there would be a "mad scramble at the twelfth hour" for most issuers to become Reg AB compliant, and he hoped the SEC would be forgiving of smaller issuers. "You just hope they are mindful for people who can't get it together," he said. McKee Nelson Partner John Arnholtz was less than impressed with the general state of Reg AB preparedness throughout the industry. Arnholtz said the biggest problem most issuers are having was how to post static pool data, but that most issuers were going to be posting that information on Web sites. Arnholtz advised the best strategy for issuers and legal counsel is to go through and update systems a little bit at a time, rather than all at once. "On a piece by piece basis we've been adding a little more AB compliance at a time," he added. - GC #### Press Release ########################## The Alta Group's Rafael Castillo-Triana Tapped for International Leasing Law Advisory Board
Rafael Castillo-Triana FORT LAUDERDALE, FL., - Rafael Castillo-Triana, a principal with The Alta Group, has been appointed to a new international advisory board tasked with drafting a model law for countries that want to improve domestic leasing regulations. The board was created by the International Institute for the Unification of Private Law (UNIDROIT), an intergovernmental organization based in Rome that works to modernize and coordinate laws for 59 member nations, including the United States, Canada, Mexico, Brazil and other Latin American countries, the United Kingdom and all of Western Europe. Castillo-Triana will contribute his knowledge of international leasing laws and Latin American legal systems to the advisory board, which is expected to include fewer than nine members worldwide. He was notified of his appointment by Herbert Kronke, secretary general of UNIDROIT, whose governing council will discuss and vote on the model law once it is drafted. Following passage by UNIDROIT, the model law could be used by member nations and other countries to better regulate domestic leasing transactions. It will focus on leasing transactions that take place within countries as opposed to cross-border transactions, which are already covered in international treaties. "The model law will build a basic structure for the unique regulation of leasing on a worldwide basis," Castillo-Triana explains. "Some countries may amend their current laws as a result of it. It may also bring regulation to countries that now lack regulation, which include Nigeria, the Czech Republic, Russia and China." An attorney with more than 25 years of practice in the international leasing arena, Castillo-Triana provides professional counsel and services to Alta clients who are launching and expanding equipment leasing and finance operations in Latin American countries. He has written several publications, including the book Legal Aspects of Equipment Leasing in Latin America and reports on Managing the Risks of Doing Business in Latin America and The AltaLAR100, which ranks the top 100 leasing companies in Latin America. He was co-author of a study that played a key role in the passage of Colombia's equipment investment tax incentive, effective Jan. 1, 2004. Castillo-Triana's office is based in Fort Lauderdale, Fl. About The Alta Group The Alta Group, established in 1992, provides a broad array of strategic consulting and advisory services, education and training programs, merger and acquisition and dispute resolution services for companies in the global equipment leasing and asset finance industries. Its clients include manufacturers, banks, independent lessors of various sizes and others in the industry. The Alta team is made up of more than 25 international professionals committed to the asset finance business, including former CEOs, company founders and industry thought leaders who are active in their areas of expertise. They collaborate and share their in-depth knowledge and insights with today's business leaders who face a range of challenges, both old and new. The firm has built a reputation on creative thinking, trust and professionalism. The Alta Group supports clients in North America, Latin America, Europe and the Middle East, as well as Greater China and Asia Pacific. For more information, visit www.thealtagroup.com. Media Contacts: Rafael Castillo-Triana, The Alta Group Latin American Region Carla Young Harrington Susan Carol Associates Public Relations #### Press Release ########################## ---------------------------------------------------------------
News Briefs---- Houston's firms getting back on track http://www.usatoday.com/money/companies/2005-09-26-houston-recover-usat_x.htm Companies cite storm for earnings damage http://www.usatoday.com/money/companies/earnings/2005-09-26-katrina-earnings-usat_x.htm Most Homeowners Not Overly in Debt, Fed Chief Says http://www.nytimes.com/2005/09/27/business/27greenspan.html Southwest goes all in at Midway http://www.dallasnews.com/sharedcontent/dws/bus/stories/092705dnbusmidway.c346d16.html Don Adams, TV's fumbling secret agent on 'Get Smart,' dies at 82 http://www.signonsandiego.com/news/features/20050926-1209-obit-adams.html ----------------------------------------------------------------
You May Have Missed Broadband users sign up at slower rate The Pew Research Center found that from December 2004 to May 2005 the number increased only 3 percent -- a statistically insignificant rise. By contrast, from November 2003 to May 2004, the number of adults with high-speed Internet at home rose 20 percent, according to the study released Wednesday http://www.mercurynews.com/mld/mercurynews/business/technology/12710943.htm ----------------------------------------------------------------
"Gimme that Wine" Wine Notes: Sippers outnumber guzzlers, poll finds http://www.modbee.com/columnists/moran/story/11263099p-12012207c.html Uncork New York Californians can now buy New York wines directly from the wineries. The state's unique climate makes it worth doing. Boston GLOBE EDITORIAL Wine online Winery faces loss of Sebastiani ----------------------------------------------------------------
This Day in American History 1904-Birthday of Frieda Barkin Hennock - Polish-born American who is credited as the most responsible for the creation of Public television. An attorney, she was the first woman appointed to the Federal Communications commission (FCC) (1948-55) She campaigned hard to get TV channels set aside for educational purposes while the men of the commission thought it nonsense. She wanted a minimum of 500 TV channels set aside for educational purposes and finally got the FCC commissioners to set aside 242, the birth of the PBS network. ----------------------------------------------------------------
This Day in American History 1514- The Spanish crown granted explorer Juan Ponce de Leon the title Military Governor of Bimini (an island in the Bahamas) and Florida. With this title and the implied permission it contained to colonize those regions, Ponce de Leon sailed for Florida in 1521. ----------------------------------------------------------------
Baseball Poem That is the Question? 2B or not 2B, Written by Robert L. Harrison |
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