Comdisco gears up for bankruptcy exit

Susan Rush
from CED Broadband Direct, July 31, 2002

Comdisco Inc.'s reorganization plan has been given the green light by the U.S. Bankruptcy Court for the Northern District of Illinois. The company expects to emerge from Chapter 11 in August.

The plan calls for Comdisco to spend up to three years to wind down the company's remaining assets. The sell-off is expected to bring roughly 90 percent recovery to its creditors. Once creditors realize 85 percent recovery, common stockholders will share in the net proceeds, beginning at 3 percent of the remaining net proceeds, Comdisco said in a statement. The initial distribution to stakeholders will be made prior to Sept. 30, which marks the end of the company's current fiscal year.

The reorganization plan has been approved by roughly 98 percent of Comdisco's creditors and stockholders. The plan should become effective by mid-August.

Comdisco filed for Chapter 11 bankruptcy protection from its creditors in July 2001. In January, Comdisco sold its electronics and laboratory and scientific leasing units to GE Capital for $665 million.

Ronald Mishler has been appointed CEO of the reorganized company. The company also named several individuals to serve on its reorganized board, including Jeffrey Brodsky, Robert Chefitz, William McIntosh and Randolph Thornton. Mishler also will serve on the board.