LINC Capital, Inc.---Up-Date

It has now been six months since the Amended Joint Plan of Reorganization was entered in the U.S. Bankruptcy Court for the Northern District of Illinois and we have not heard anything about the status of the claims that were to be prosecuted under that Plan. If anyone knows what's going on, please write Leasing News so that we can keep our readers apprised.

The Plan (entered as an Order in Case No. 01 B 03320 on January 9, 2002) provided that "The holders of Allowed General Unsecured Claims will not receive any cash on the Effective Date, but may be entitled to future distributions from the net proceeds realized from the successful prosecution of Estate Claims and Avoidance Actions remain after payment of fees, including the $230,000 advanced to maintain the directors and officers liability insurance.".

The Disclosure Statement filed with the Plan stated that creditors were willing to forego small cash payments in return for a chance at greater recovery from litigation to be instigated against the directors, officers, accountants and underwriters. In fact, the Disclosure Statement on page 17 states that "The Creditor's Committee has conducted a preliminary investigation of conduct, acts and omissions which it believes fall within the definition of Estate Claims and which should be asserted by the Estate Representative".

Several of the directors and officers of Linc Capital, remain in the leaisng business, and evidently funders and other associated with their concerns are not aware of the lawsuit or claims.

Does anyone know: (a) who is the Estate Representative? (b) who is the law firm(s) handling this case? (c) whether any action has been filed in Illinois or elsewhere?

Leasing News in attempting to locate information, did discover two other lawsuits that were filed by third parties before the Plan of Reorganization was approved by the Bankruptcy Court. Both cases involve recovery of money from directors and officers of LINC in connection with the Preferred Stock issued by LINC to individuals just before LINC closed its doors and restated earnings for the fiscal period before the stock issuance date. The allegations include, breach of contract, violations of the Securities Exchange Act and common law fraud. We also would like to receive any information on the status of these two other lawsuits (or any other additional lawsuits against LINC or any of its officers and directors) that are still pending according to the Court records:

      Nathan H. Dardick vs. Martin E. Zimmerman, Robert E. Laing, Allen P. Palles, Stanley Green, Curtis Lane, Terrence J. Quinn and Mark Arvin, filed 03/29/01 in the U.S. District Court for the Northern District of Illinois- Chicago (Case No. 01-CV-2223); and

Any further information will be appreciated regarding LincCapital ( or any other

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