The FINOVA Group Inc. Announces Dissolution
November 18 2009 - 1:06PM
Business Wire
The FINOVA Group Inc. (FNVG.OB) (the “Company”) announced today that, in
accordance with an order of the United States Bankruptcy Court for
the District of Delaware, issued on December 4, 2006, on November
17, 2009 the Company filed a Certificate of Dissolution with the
Secretary of State of the State of Delaware and has accordingly
dissolved. At the close of business on November 17, 2009, the
Company closed its stock transfer books and ceased recording
transfers of shares of its common stock.
The Company has substantially completed the liquidation of its
assets and paid all its remaining unrestricted cash ($57.8
million), less certain reserves ($2 million), to Wilmington Trust
Company, the Collateral Trustee (the “Collateral Trustee”) for its
7.5% Senior Secured Notes, which matured on November 15, 2009 (the
“Senior Notes”). The Senior
Notes currently have a total outstanding principal and unpaid
interest balance of approximately $1.5 billion.
Holders of the Company’s common stock will not receive any
liquidating distributions. Holders of the Company’s common stock
may have certain rights, however, to receive distributions related
to principal payments on the Senior Notes, depending upon the
results of litigation with respect thereto as disclosed in the
Company’s Quarterly Report on Form 10-Q for the quarter ended
September 30, 2009. As disclosed in such Form 10-Q, on October 21,
2009, the United States Court of Appeals for the Third Circuit
entered a judgment and issued an opinion denying the equity
committee’s appeal, affirming the rulings of the United States
Bankruptcy Court for the District of Delaware and the United States
District Court for the District of Delaware that the stockholders
of the Company were not entitled to distributions under the
Indenture governing the Company's 7.5% Senior Secured Notes. The
equity committee may seek to have the appeal considered by the
United States Supreme Court by filing a petition for writ of
certiorari by January 19, 2010, or later in certain
circumstances.
In connection with the Company’s dissolution, the Company
transferred the approximately $81.2 million of restricted cash that
was being held in reserve to the Collateral Trustee, pending
resolution of the litigation regarding distributions to FINOVA’s
stockholders. If it is finally determined that the stockholders are
not entitled to such funds, the Collateral Trustee will transfer
the $81.2 million to The Bank of New York, in its capacity as
Indenture Trustee for the Senior Notes for distribution to the
holders of the Senior Notes. A press release will be issued on
behalf of the Company announcing the results when this litigation
is ultimately resolved.
After November 30, 2009, all correspondence and communications
with the Company should be directed to 20235 N. Cave Creek Road,
Suite 104, Box 601, Phoenix, Arizona 85024.