Comdisco emerges from bankruptcy

By SUSAN RUSH
From CED Broadband Direct, August 13, 2002

Comdisco has reached its goal, and emerged from Chapter 11 bankruptcy. The reorganized company expects a 90 percent return to its creditors.

The plan for the newly named Comdisco Holding Company is 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.

A U.S. Bankruptcy Court for the Northern District of Illinois and 98 percent of Comdisco's shareholders and creditors who voted approved the reorganization plan late last month.

Ronald Mishler was named CEO of the reorganized company in July. 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.

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.