Kit Menkin’s Leasing News

                   www.leasingnews.org  Tuesday, 21, 2002

Accurate, fair and unbiased news for the equipment Leasing Industry

 

           Headlines----U.S. leading economic indicators drop in April

  Tyco Rises 5.8% on Optimism About Plans for CIT Unit

    Oracle Enters Leasing Fray with Lease Management Software

      Leasing Group  Announces Strategic Financing Solutions with Ask Jeeves

               International Decision Systems Makes Major Move

                      Johnnie Johnson, CLP, in Kuwait

Readers Agree on Caruso and “The Graying of the Leasing Industry.”

    MonitorDaily Complaint Reaction

        Heritage Funding, Overland Park, Kansas

               Webster Agrees to Acquire Asset-Based Lending/Leasing Business

                   Court Approves Kellstrom Industries Asset Sale

                          LA. Secession Crucial Vote Tomorrow

                               California home prices hit new peak in April

 

 

### Denotes Press Release

 

 

 

U.S. leading economic indicators drop in April

 

CBC News

 

NEW YORK, NY - A key economic indicator in the United States slipped in April, marking its first decline since September, the Conference Board reported Monday.

 

The private research organization said its Index of Leading Economic Indicators fell 0.4 per cent to 111.7 last month following a 0.1 per cent gain in March. Economists had been expecting April's leading indicators to show a drop of 0.1 per cent.

 

"The signal from the indicators is that the recovery is developing quite slowly," Ken Goldstein, an economist at the Conference Board, told the Associated Press.

 

"Despite the strong growth in gross domestic product in the first quarter, the recovery in the industrial core remains weak," Goldstein said.

 

A second straight contraction in the U.S. real money supply and falling stock prices were the main reason for the leading index's drop.

 

Softening consumer expectations and average weekly initial claims for unemployment insurance also weighed on the economic outlook.

 

Written by CBC News Online staff

 

 

Tyco Rises 5.8% on Optimism About Plans for CIT Unit

 

Exeter, New Hampshire: Tyco International Ltd. shares rose 5.8 percent amid investor optimism that the conglomerate will complete a plan to dispose of its CIT finance unit by June 30.

 

The shares increased $1.19 to $21.75. It gained 18 percent this week.

 

Tyco must sell or spin off CIT to avoid a cash crunch, analysts have said. The company has detailed expected cash for the next 18 months to assure investors of its solvency. Tyco may book a gain of as much as $1.5 billion if it proceeds with an offering of CIT, and a charge of as much as $750 million if it doesn't.

 

``There is a big liquidity discount in the shares,'' said Mark Demos, an analyst with Fifth Third Investment Advisors, which manages about $34 billion in assets, including Tyco shares. ``There is a lot of potential upside if they dispose of CIT.''

 

 ( Courtesy EFJ.com )

 

################### #######################################

 

(Oracle Enters Leasing Fray with Lease Management Software)

ORACLE LEASE MANAGEMENT REDUCES REVENUE LOSSES, CUTS OPERATIONAL COSTS AND ENHANCES CUSTOMER RETENTION

REDWOOD SHORES, Calif., - (http://www.oracle.com/tellmemore/?1335578) Oracle Corporation, the largest enterprise software vendor,  introduced Oracle(r) Lease Management, a new Oracle E-Business Suite application that helps simplify and manage complex leasing agreements for the $260 billion United States lease management business (source: the ELA Survey of Industry Activity Report 1999-2000). By automating the complete lease lifecycle, Oracle Lease Management can cut costs associated with offline time and labor operations, reduce risks from lost revenue and lease renewals, increase internal productivity, and enhance customer relationships with improved data accuracy, transaction speed, services and offerings.

To date, leasing information and asset contracts have been stored in disparate legacy systems. Yet as leasing agreements between parties become more complex, companies are over spending in an attempt to consolidate real-time, global, lease and asset information by undergoing extensive overhauls or upgrades. Using Oracle Lease Management, companies can avoid costly customizations while achieving instant access to information from their front and back office systems to facilitate effective management of multiple agreements and relationships between lessees, vendors, partners and investors.

Companies such as global management and IT consultant Cap Gemini, Ernst & Young and Northern Consulting recognize the need for and value of a lease management solution like Oracle's. "Effectively tracking leases and asset operations is key to a company's business and bottom-line," said Tony Turni, of Cap Gemini Ernst & Young, one of the largest consulting firms in the world and a leading provider of project and outsourced solutions in Financial Services and Leasing Management. "As the only comprehensive solution on the market that also manages contracts on an asset-based level, Oracle Lease Management enforces best practices globally. From the beginning, Cap Gemini Ernst & Young worked with Oracle Development and its charter customer to develop the requirements and specifications which form the basis for the Oracle's leasing solution."

Oracle Lease Management helps streamline operations by tracking leases from loan origination to contract termination, including credit approval, vendor payment, contract authoring, activation and billing. The Oracle solution can reduce costs by combining multiple deployments into a single instance, providing a 360-degree view of all parties involved, and helping ensure that the appropriate data is shared with customers and partners.

"Oracle Lease Management enables companies to actively manage multiple agreements, parties and relationships with a lot of flexibility," said Cameron Krueger of Northern Consulting, a provider of systems and operations consulting to the equipment finance and leasing industry. "We see companies benefiting greatly from this tool because it is extremely configurable. Companies can define their own business rules, calculations and products. In turn, lessors can grow their portfolios and offer innovative financing products while streamlining operations with a well integrated approach to contract management."

Turni adds, "Oracle Lease Management enables companies to actively manage multiple agreements, parties and relationships. In addition, this application can help streamline a company's creation of the various portfolio management profiles -- such as strategy, budget amount and execution date - and allow it to anticipate more accurate investment returns."

As the business process distinctions between traditional CRM and ERP functions blur, applications like Oracle Lease Management enable companies to provide better customer service by seamlessly sharing data between the back and front offices on one database. "Oracle Lease Management is another example of how Oracle applications are integrated, highly-functional, and automated across the entire suite," said Tony Gaughan, vice president of applications development, Oracle Corporation. "Companies that extend their CRM data into other areas of their business will benefit by improving operational efficiencies and increasing customer satisfaction."

Oracle's commitment to the leasing industry extends beyond the product offering to services as well. Oracle Consulting has developed a global consulting leasing industry practice, that will help customers implement and configure the lease management application.

About Oracle
Oracle is the world's largest enterprise software company. For more information about Oracle, visit our website at www.oracle.com.



CONTACT:
Sean Mills
Oracle Corporation
Phone Number: 650-607-5176
Fax Number: 650/506-7598
E-mail: sean.mills@oracle.com

### ########################################################

 

 

 Leasing Group  Announces Strategic Financing Solutions with Ask Jeeves

 

               EMERYVILLE, Calif. & AUSTIN, Texas----

Leasing Group Inc. (LGI), the industry's leading provider of

innovative vendor-based financial solutions and transaction management

services, and Jeeves Solutions(sm), the enterprise software division

of Ask Jeeves(R) Inc. (Nasdaq:ASKJ), today announced a new financing

program designed to give businesses flexible funding options for

licensing JeevesOne, Jeeves Solutions' self-service software.

 

               Administering the program for Jeeves Solutions, LGI will provide

outsourced program management, administration and marketing services,

and will offer a host of financing solutions to companies interested

in becoming JeevesOne customers.

 

               "Using the Web to increase revenues, decrease support costs and

improve customer relationships requires that companies enhance the

usability of their Web sites," said Chad Rudolph, senior vice

president of sales and marketing for Jeeves Solutions. "This new

financing program from LGI will enable companies to immediately

utilize our natural language self-service and analytics solutions to

accomplish business objectives without outspending their budgets. We

expect this flexible financing solution to help us further penetrate

the self-service CRM market with JeevesOne."

 

               The program is designed to address the growing demand from

corporate enterprises to finance their software applications.

According to "The Status and Outlook for the U.S. IT Leasing

Marketplace," software application leasing is expected to grow 10.7%

annually. By 2003, the percentage of total software sales acquired

through leasing is expected to be 5%, up from 2.7% in 1999.

 

               As Jeeves Solutions' outsourcing provider, LGI will receive the

customer's credit application, document and present the order to the

financing community, process the transaction and communicate the

status of the transaction directly to Jeeves Solutions through LGI's

proven Web Finance Portal(tm). In support of the program, LGI has

established a dedicated team of finance professionals within its

Austin, Texas, call center to assist Jeeves Solutions customers with

all of their financing questions and funding decisions.

 

               "Jeeves Solutions is the preeminent provider of advanced Web-based

self-service technology," said Clark Covert, chairman & CEO of Leasing

Group. "Optimizing user efficiency on the Web by helping customers

find the exact information they are looking for is a customer service

solution all of us can appreciate." Covert went on to say, "Our

financing experts will work directly with Jeeves Solutions customers

to ensure that each client receives the high level of service they

deserve and a financing solution that meets their budgetary

requirements."

 

               About LGI

 

               Leasing Group Inc. (LGI), www.leasinggroup.com, is a Managed

Service Provider (MSP) of innovative vendor-based financing solutions

and Business Process Outsourcing (BPO) services.

 

               Established in 1988 to design, develop and implement competitive

financing solutions for Dell Computer Corporation, the company today

offers a variety of domestic and international financing solutions,

outsource transaction processing and management services, and a

proven, Web-based systems platform to provide vendors with lower

operational costs, increased customer service levels and complete

control over their entire financial product and service portfolio.

 

               Based in Austin, Texas, LGI pioneered many of today's common

industry practices including authorized transactions via faxed

signatures, electronic transfer of funds using EDI standards,

non-recourse, small ticket leasing programs; and leases that do not

require the use of delivery and acceptance documents. Backed by

Conning Capital Partners and Stephens Inc., LGI has funded over $1

Billion in financial transactions since its inception and its

innovative and technological leadership continues today with the

expansion of its Web Financial Portal(tm). For more information about

LGI, visit www.leasinggroup.com or call 1-800-608-5201.

 

               About Jeeves Solutions

 

               Jeeves Solutions is a leading provider of enterprise class

question answering technology that delivers Connected Self-Service and

essential customer intelligence. Through an intuitive interface that

connects customers with the information, products and services they

are looking for, Jeeves Solutions uses sophisticated Analytics to

deliver critical, customer-driven information to corporations. This

essential data enables companies worldwide to build profitable

relationships with their customers, prospects and suppliers. By

learning from every online customer interaction, Jeeves Solutions

helps companies cost-effectively increase the quality and depth of

customer interactions and leverage customer insight to guide product,

sales and marketing strategies. Corporate customers including British

Telecom, DaimlerChrysler, Dell, Nestle, Nike and the State of

Washington use Jeeves Solutions.

 

               A division of Ask Jeeves Inc. based in Emeryville, Jeeves

Solutions may be contacted at www.jeevessolutions.com or by calling

1-866-JEEVES1

 

               About Ask Jeeves Inc.

 

               Ask Jeeves is a leading provider of natural language question

answering and advanced search technologies. The company offers these

technologies through two business units: Web Properties and Jeeves

Solutions. Web Properties operates a top 20 media property that

delivers one-to-one marketing by connecting interested users with

relevant advertisers. In addition to its Web sites, which include Ask

Jeeves at Ask.com and Teoma.com, Ask Jeeves also syndicates its

monetized search technology to a network of affiliate partners.

 

               Ask Jeeves is based in Emeryville, Calif., with offices in New

York, Boston, New Jersey, Los Angeles and London.

 

               NOTE: Ask Jeeves and Ask.com are registered trademarks of Ask

Jeeves Inc. JeevesOne, Jeeves Solutions, and Teoma are service marks

and trademarks of Ask Jeeves Inc.

 

*T

Jeeves Solutions                Leasing Group

5858 Horton Street              11000 North MoPac Expressway        

Suite 350                       Suite 300                           

Emeryville, CA 94608            Austin, TX                       

510/985-7400 (phone)            512/344-1200 (phone)                 

www.jeevessolutions.com         www.leasinggroup.com                 

*T

 

    --30--sw/sa*

 

    CONTACT: Leasing Group, Austin

             Patrick Laughlin, 512/344-1200      

             www.leasinggroup.com  

             patrick_laughlin@leasinggroup.com         

              or  

             Jeeves Solutions, Emeryville 

             Michele Mehl, 510/985-7400                              

             mmehl@jeevessolutions.com

             www.jeevessolutions.com

 

#### #################################### ###################

International Decision Systems & Premier Lease and Loan Services

Strengthen InfoLease Leasing Software

 

 

 

 

MINNEAPOLIS, Minn., USA-International Decision Systems, Inc. (IDS) - the global leader in leasing and sales management software systems - announced today a partnership with Premier Lease and Loan Services, the leading source for insurance services and expertise in the leasing industry.  Jim Meinen, IDS president and CEO, explained, "Although we've had a relationship with Premier for more than a decade, closer ties with the company - and other future business partners - will generate 'market-driven' IDS product enhancements that will make this aspect of leasing easier and more profitable than ever for our customers."

 

 

 

Premier developed IDS' InfoLease Insurance Interface, which automates insurance underwriting by transferring insurance information from InfoLease to Premier.  Premier arranges for coverage for lessees who lack proof of insurance, whose coverage isn't current, or who prefer that the lessor provides coverage and includes it on billing statements.  This arrangement guarantees insurance coverage from the point of lease inception.

 

 

 

"In offering a single portal to all the resources of IDS and Premier, the InfoLease Insurance Interface is a real team effort underscored by our new partnership," says Premier's Brei Abercrombie, Business Development Manager.  "We will provide continued input on how customers can improve their insurance programs and generate more fee income."

 

 

 

Premier's large professional and customer services organizations allow lessors to completely outsource the entire insurance process, saving significantly on manpower and providing considerably better customer service.    

 

 

 

About International Decision Systems

 

International Decision Systems (IDS) is a global market leader in developing lease accounting, portfolio management, and wholesale/floorplan financing software and services. IDS serves over 500 independent, bank-related, captive leasing and financial services companies worldwide from offices in Basingstoke (UK), Hursley (UK), Boston (USA), Minneapolis (USA), Sydney (AUS), and Singapore.

 

 

 

International Decision Systems is a member of IDS Group plc companies, which is publicly traded on the London Stock Exchange. IDS has approximately 500 employees and the largest software development and services teams in the industry. Their clients include many of the world's most prestigious leasing and financial services companies.  For additional information about International Decision Systems and IDS Group plc, visit its Web site at www.idsgrp.com.

 

 

 

About Premier

Premier, a division of Great American Insurance Group, is one of the 30 largest property/ casualty insurance groups in the U.S.  The company offers a broad range of insurance products and outsourcing solutions to meet the needs of equipment lessors, and specializes in creative and flexible programs that provide risk management, fee income and product enhancement benefits.  For more information about Premier, visit www.plls.com for more information.

 

 

 

# # ### ################################################ ################ 

-------------------------------------------------------------------------------------------------------------

 

Johnnie Johnson, CLP, in Kuwait

 

I was forwarded your newsletter with the line asking if anyone knew how to contact me.   I am surprised that it is a "secret", since I was very careful to make sure that key people, including UAEL had my contact information.   Anyway, to give you an update:

 

As you know, in 1999 I was doing the CLP training throught UAEL.  I was also doing private consulting work for selected clients.  At the end of the year, I was asked by a group out of the Middle East to go to Kuwait on a consulting basis and help do the initial business set-up for a leasing and investment company to be formed there.   There was a break in my schedule and I agreed to go for three months to help establish the infrastructure of the company.  I was extremely interested in gaining practical first-hand experience in international leasing.   I had felt for some time that the international marketplace was the most likely potential for dynamic growth in the US Leasing Industry.  Well, to make a long story short, after being there a month, I was

asked to stay on a more permanent basis--which I agreed to do.  That was now 2 1/2 years ago.

 

The Company I joined is The International Leasing & Investment Co. (ILIC)   It was formed by a consortium of Middle East financial interests with an intial capitalization of US $50 million.  One of ILIC's principal shareholders is the Islamic Development Bank (a member bank representing 53 countries--similar to the World Bank).  ILIC deals in large ticket leasing transactions, with a minimum size of US$1 million and no effective upper limit (largest transaction we have worked on is just over US$400 million--and have looked at involvement in transaction as large as US$1.5 billion.)  Our average transaction size is currently about US$20 million).   We typically will syndicate or securitize the transactions we originate, using primarily financial institutions in Kuwait, the Middle East, and Europe.   The Company is involved in transactions all over the world (including the US). 

 

ILIC does business under Islamic financial rules.  Personally, it has been both an interesting and challenging experience to learn about Islamic finance--and at the same time help build a new company.  Working with Islamic finance has added a new depth to my understanding of finanical transactions and structuring, and, even if I do say so myself, am becoming somewhat of a recognized expert in this area.     

 

One of the mandates of the Company is to encourage the development and use of leasing in this part of the world.   Consequently, we are also involved in the spread of education, training and other information about leasing.   Included in this spread is the initiation and development of new leasing companies in a number of countries in which we do business.   We are currently actively involved in the start of three new companies, and are looking at 5 other countries as candidates for new companies within the next 2 years.   ILIC is one of the shareholders of each these new companies, and provides the new company, through a management contract, with infrastructure development and initial management control and direction.

 

Serving as its Executive Vice President and the Chief Operating Officer, I hold the #2 position in the company.   The Chairman/CEO is a Kuwaiti national.  We have a total of 8 different nationalities represented on staff, so the day to day atmosphere truly has an international flavor.

 

The life here is also very interesting, and I have enjoyed my stay here imensely.    It has fulfilled a lifelong desire to have the opportunity to be emersed in another culture, and to learn about other peoples of the world.   Because of our Company's international exposure, I travel often, and, for example, have been in 11 different countries over the last 6 months.  It also brings many challenges.

 

I am very comfortable with my personal safety, and have never felt

threatened here in Kuwait, nor in my travels.  It is necessary to use a certain amount of discretion and common sense---but you have to do that anywhere you are.

 

Well, have not meant this to be a travelog or life history--but since you asked, felt it might be interesting to know a little about what I have been and am doing.   Please feel free to share the information, and to pass on my contact information to anyone who is interested.   Be assured, that I am alive and well, and deeply emersed in the leasing industry.

 

Johnnie

 

W. R. Johnnie Johnson, CLP

Exec. Vice President/Chief Operating Officer

The International Leasing & Investment Co.

P. O. Box 3716, Safat

13038, Kuwait

Phone:  965-244-0368

FAX:     965-246-3190

E-Mail:  johnson@ilic.net

 

(Also now in the white pages of elessors.com. A directory of those in the leasing

business. http://www.lessors.com/cgibin/webdata_ww.cgi  )

 

 

Readers Agree on Caruso and “The Graying of the Leasing Industry.”

 

The Graying of the Leasing Industry   -  by  - Ron Caruso.

 

Hit the nail on the head!! I could not agree more wholeheartedly with Ron’s

analogy of the entire leasing industry. I was recently at an  association

meeting for the NVLA . The quarterly meeting was to elect new officers of

the association  the end result was some old officers were recycled to take

on the same positions as they once had, their were no other candidates.

 

 I had a moment before leaving the dinner meeting when I looked around and

realized I was the youngest person in the room , by a fair margin and I'm 47

years old. The same thought occurred to me that Ron mentioned in his

article, where are the replacements. I left the leasing industry once before

to pursue other career opportunities only to return several years ago,

because I believe Leasing provides a viable alternative to traditional

financing. However I have to admit I feel  just as morose as Rons article

points out and wondered where my future lies in the industry.

 

 The pattern Ron mentioned is exactly the pattern I have experienced and know form

personal knowledge other associates in the business that have ultimately

exited, as a result of minimal opportunities that allow for growth and

stability. Their needs to be some serious though put to this issue to

determine the future and viability of the leasing industry as a whole.

Food for Thought.

 

Ronald Debole leaseman6857@worldnet.att.net

 

 

--- 

 

I have to agree with Ron's comments about other industries not appearing to

believe the skills, knowledge, etc. that an experienced leasing person has

much transfer value.  Back in the recession days of the early 90's when my

then consumer lending oriented employer got out  of small ticket business

equipment financing and closed down the group I had headed up or nearly five

years,  I sent my resume to numerous banks thinking my then 12 years of

experience in credit, collections, documentation and general operations

qualified me for something within the banking industry.  I had even spent

part of those early years with a Wells Fargo affiliate and had undergone

formal Wells Fargo Bank corporate/commercial lending training.  I had an

interview with exactly one bank.

 

Russell H. Wilder, CLP

RWilder@ATEL.com

 

 

 

---

 

I agree wholeheartedly with Ron Caruso's article about the "graying of the

leasing industry".  Well written, Ron!

 

Teri

 

Teri Gerson, President

Executive Solutions for Leasing and Finance, Inc.

1141 Minisink Way   Westfield, NJ  07090-3726

908.654.1550  Fax 908.654.1553

terigerson@exsolutions.com    http://www.exsolutions.com

 

---

 

I read with interest the comments by Ron Caruso regarding the "Graying

of the Leasing Industry".  I agree with him in that this industry is

not, at this time, for the faint of heart.  Over the past several years,

however, we have had many "younger" entrants into the industry who came

with "boiler room" telemarketing skills and sales methodology and

techniques that were based on questionable ethics, at best.

Nevertheless these types of companies flourished during the "high tide"

days of the middle and late 90's.  The problem with all of the young

people that were hired into those companies is that they did not learn

anything about the leasing business or even finance in general.  They

learned great telemarketing skills. 

 

This whole situation was proliferated by an industry that was obsessed

with achieving technological efficiency and lowering costs to combat

declining margins. Forget the people and leave it all to automation. The

old "belt buckle to belt buckle" sales and service approach that made

the industry was declared an invalid business model.  As an industry we

recruited plenty of young people but we never taught them anything

because, with "application only to $250,000" programs, they didn't have

to learn the skills that we baby boomers needed when we were brought

into the fold 20-25 years ago.

 

I see the industry coming full circle.  I am reminded once again of the

comments that were made by Ira Romoff at the UAEL/EAEL conference in Las

Vegas in 1998 (I believe).  He so aptly predicted that there would come

a time when the wave of consolidation would come to an abrupt halt, the

huge companies would "implode", and nearly everybody would have to

remember how to actually originate transactions rather than grow through

acquisition.  It certainly appears to me that Ira had nailed it.

 

In my opinion the current situation in the leasing business has created

tremendous opportunity.  There is still a lot of money to be made but it

is harder. Not because the business is that different but because

customers are smarter, more savvy and more suspicious of us than they

used to be.  They also have different options that weren't available to

them before.  As Mr. Caruso points out, there aren't as many deep

pockets as there used to be but they'll be back.  Just the other day, I

read the story on the state of the Industry.  We can expect 6.4% growth,

overall, for the next couple of years. I suspect double digit growth

will continue in some specialized segments of the industry. 

 

As far as the talent pool having "transferable" skills, why would a

talented sales or credit analyst want to leave the industry?  The poor

execution by leasing industry management over the past five years has

little to do with the continuing demand for equipment finance programs

in the marketplace.  While I agree that there is probably a percentage

of those folks who are married to a paycheck, there is always that group

with the entrepreneurial bent that realize they can still do what BigCo

was paying them for and probably make more money at it as an

independent. After all the consolidation of the late 80s and early 90s

produced a few companies that have grown rather large and done extremely

well. Tony Galobic and Great American immediately comes to my mind.

Marlin would be another example.

 

After this last round of consolidation and break-up I am coming to the

conclusion that the equipment finance industry has so many

constituencies, situations, equipment types and industries to serve that

it works better for everyone when it's fragmented, a little less

efficient but more personal.

 

If one of my kids expressed the interest and desire to get into this

business I would not discourage it.  I would just make certain that they

were equipped with a skill set that gave them the highest probability

for success. If we had trained the young people of the past 5 years this

way the talent pool wouldn't be so "Gray" at this time.

 

Bob Rodi, CLP

 

President

LeaseNOW, Inc.

drlease@leasenow.com

www.leasenow.com

1-800-321-LEAS (5327)x 101

 

---  

 

Ron Caruso, Greying of Leasing Industry, and advice for young financial

careerists- It would definitely be a mistake to advise anyone to enter any

specialty that relies on capital formation in the private sector.  The

worldwide trend is for government to soak up all of the available growth.  We

used to have a choice between a party who wanted to grow the government twice

as fast as the general economy per year (Dem) or a party who would do their

best to limit government growth to that of the general economy (GOP), but no

more.    Both are now colluding to grow "their business" at 15% per annum,

and no one speaks up to complain.  Remember the talk of ITC returning in the

new tax laws?  What happened to that? 

 

I advise young people to take necessary government jobs such as firefighter

and police officer(shift work),  then use their plentiful time off to start a

small business.   That way, their financial future will be assured with their

generous public sector pension, and when they pay their 45% all-in tax rate

as a small business owner, at least they will be getting some of it back

directly.

 

Dave McDonough, lease broker

(954) 494- 0675

DIOMNIDave@aol.com

 

----------------------------------------------------------------------------

 

MonitorDaily Complaint Reaction

 

 

I feel that the Monitor does a wonderful job of keeping the leasing

industry, which gets smaller every day, informed.  They are all very

professional people with top-tier leasing company backgrounds.

 

David K. Young

dyoung@dnjcapital.com

DNJ Leasing

312-629-2877

312-629-2874 (fax)

 

--- 

 

Teri Gerson's complaint regarding The Monitor contains assertions which, in my opinion, is seriously flawed.  She writes:

"Malloy and Associates are recruiters. The Monitor is a news journal. They are two different businesses."  The Monitor, at least in its printed form, limits only a small percentage of its editorial copy to "news", in a section it calls "Newsline".  Newsline reports merger and acquisitions, court rulings and other legal items, as well as personnel changes within the industry.  The latter of these three are contributed by its

readership, and it is an editor's choice as to what announcements will end up in print. 

 

There is no implied agreement that a paid subscription guarantees the printing of an announcement, no more than a paid subscription to a daily newspaper gives one automatic access to printing one's letter to the editor.  The balance, and bulk, of The Monitor's editorial copy are contributions from its readers, which are largey

perspectives, analyses, and educational in nature.  They are magazine articles, but not news.

 

From just a few reads, it is very obvious that most of these article contributors do so for two purposes:  to share their knowledge or perspective with Monitor's readers, and to get some free exposure in a very captive, targeted audience.  So, in a way, it is a vehicle for

self-promotion, much in the same way that the entire publication is vehicle for Molloy & Associates to promote itself.  In this paradigm then, Molly & Associates and The Monitor are not truly two separate businesses, as Ms. Gerson contends.

 

Jim Fleming

 nationalbusinesscredit@yahoo.com

 

--- 

 

 

 

 

               Heritage Funding, Overland Park, Kansas

 

 Lee Greif has opened a new funding source named Heritage Funding. Greif who formerly was associated with 1st Financial has left that group and opened up a new funding source in a private partnership.

 

The new entity will fund hard collateral (ie. trucks and trucks with equipment mounted on it) and other general equipment(including everything from printing presses, to new computers, to medical equipment).

 

Greif indicated a wide range of funding ability with  minimum transactions size of $25,000 and a maximum of up to $1 million.

 

Heritage Funding

Suite 900

7500 College Boulevard

Overland Park, Kansas 66210

phone 913-754-0850

fax 913-906-9840

email Leeg@Herfund.com

               

--------------------------------------------------------------------------------------------

### ################################## ##############################

 

Webster Agrees to Acquire Asset-Based Lending/Leasing Business

 

WATERBURY, Conn--Webster Financial Corporation (Nasdaq:WBST), holding company for Webster Bank, announced today that it has reached a definitive agreement to acquire the asset-based lending division of IBJ Whitehall Business Credit Corporation, a subsidiary of The Industrial Bank of Japan Trust Company.

 

The asset-based lending operations will operate as Whitehall Business Credit Corporation, a subsidiary of Webster Bank. Terms of the all cash transaction were not disclosed. The transaction, which is subject to regulatory filings and customary closing conditions, is expected to close in the third quarter of 2002, is expected to be immediately accretive to earnings, and will not create any goodwill.

 

"Our acquisition of this asset-based lending business is consistent with our plans to continue to diversify our lending business into high quality commercial loans in a manner that enhances our revenue stream and creates opportunities for growth," said William T. Bromage, Webster President and Chief Operating Officer. "Asset-based lending has been a promising business for us, and this transaction both strengthens our existing asset-based lending capabilities and broadens our geographic reach."

 

In the transaction Webster will acquire approximately $515 million of outstanding loans, most of which are to customers in the Northeast. Webster has completed extensive due diligence of the asset-based lending portfolio and related cash management business. Its acquisition is limited to current and fully performing loans in the asset-based lending portfolio at closing.

 

Webster will offer employment to the current staff of approximately 55 people and will operate this business from its existing location at One State Street in New York City. In addition, Webster will retain offices in Braintree, Massachusetts and Atlanta, Georgia. Webster expects to obtain approximately $21 million of deposits and cash management accounts related to this business.

 

"This acquisition accelerates our transformation to a diversified financial services provider with a commercial bank profile," said James C. Smith, Webster Chairman and CEO. "Building on our recent growth in equipment leasing and financing, insurance and investment management, this new asset-based lending business, and in particular the highly capable management team, adds to our solid foundation for growth in the years ahead."

 

Warren Mino, the current President and Chief Operating Officer of IBJ Whitehall Business Credit Corporation, is expected to continue his leadership of these operations when they join Webster Bank. Mr. Mino said that he and his colleagues were pleased to be part of a financial services company with an existing asset-based lending business. "We all like the fact that we are joining this strong, growing company that considers asset-based lending to be a strategic growth opportunity. We look forward to adding value as part of the Webster team," he said.

 

IBJ Whitehall Business Credit Corporation, founded in 1968, is a wholly owned subsidiary of the Industrial Bank of Japan Trust Company headquartered in New York City, which in turn is a wholly owned subsidiary of Mizuho Corporate Bank.

 

Webster Financial Corporation is the holding company for Webster Bank and Webster Insurance. With $12 billion in assets, Connecticut-based Webster Bank provides business and consumer banking, mortgage, insurance, trust and investment services through more than 100 banking offices, 210 ATMs and the Internet (www.websterbank.com). Webster Financial Corporation is majority owner of Chicago-based Duff

 

Phelps, LLC, a leader in financial advisory services, and Webster Bank owns Center Capital Corporation, an equipment leasing and financing company headquartered in Farmington, Connecticut and Webster Trust Company, N.A. For more information on Webster, including past press releases and the latest Annual Report, visit the Webster Bank website at www.websterbank.com.

 

Statements in this press release regarding Webster Financial Corporation's business that are not historical facts are "forward looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statement, see "Forward Looking Statements" in the Company's Annual Report for the most recently ended fiscal year.

 

CONTACT:

 

Webster Contacts:

 

Media: Art House, 203/578-2391

 

Ahouse@websterbank.com

 

Clark Finley, 203/578-2507

 

cfinley@websterbank.com

 

or

 

Investors:

 

James M. Sitro, 203/578-2399

 

jsitro@websterbank.com

### ##########################################        

 

Court Approves Kellstrom Industries, Inc. Asset Sale to an Entity Controlled by Inverness Management LLC

 

 

MIRAMAR, Fla

 

Transaction is Expected to Close In A Few Weeks

 

Kellstrom Industries, Inc. ("Kellstrom") announced that Judge Mary Walrath of the United States Bankruptcy Court for the District of Delaware approved the proposed sale of Kellstrom's aviation inventory management business to KIAC, Inc. ("KIAC"), an entity controlled by Inverness Management LLC ("Inverness").

 

KIAC increased its original bid by $5 million to $55 million in cash, and was approved as the successful bidder at the section 363 sale hearing by the United States Bankruptcy Court for the District of Delaware. The cash payment will be funded with equity from Inverness and other investors and a senior secured debt facility agented by GE Capital.

 

Inverness is a privately held investment firm, based in Greenwich, Connecticut, which provides equity for acquisitions, recapitalizations and companies seeking additional capital. Inverness invests primarily in out-of-favor industries and has experience investing in the aviation services industry. Inverness manages private equity funds with over $350 million of committed capital, provided primarily by large institutional investors.

 

James C. Comis, III, Managing Director of Inverness, stated, "Upon our purchase of Kellstrom's aviation inventory management business, the company will be one of the most strongly capitalized competitors in the industry. We believe that the sound financial footing of the company will enable its customers and vendors to trade with us with confidence."

 

Yoav Stern, Chairman of the Board of Kellstrom stated, "With today's announcement, the sale is moving forward. Our business plan, as originally envisioned and frequently shared with our customers and vendors, is on schedule. We expect the transaction to close shortly. As previously reported, KIAC will retain substantially all of the management and employees of Kellstrom. The sale of Kellstrom's other non-operational assets, primarily real estate, will be accomplished through confirmation of a plan to maximize recovery to creditors."

 

Zivi R. Nedivi, President and CEO, noted, "During the sale process, we remained focused on our core business, value-added inventory management services for the aviation after-market. We have all of the resources in terms of access to capital, talent, inventory and technology to serve our 1200 commercial and defense oriented customers worldwide."

 

Kellstrom is a leading aviation inventory management company. Its principal business is the purchasing, overhauling (through subcontractors), reselling and leasing of aircraft parts, aircraft engines and engine parts. Headquartered in Miramar, Florida, Kellstrom specializes in providing: engines and engine parts for large turbo fan engines manufactured by CFM International, General Electric, Pratt & Whitney and Rolls Royce; aircraft parts and turbojet engines and engine parts for large transport aircraft and helicopters; and aircraft components including flight data recorders, electrical and mechanical equipment and radar and navigation equipment.

 

 

 

CONTACT:

 

Kellstrom Industries, Inc.

 

Oscar Torres, 954/538-2604

 

www.kellstrom.com

 

of

 

INVESTOR RELATIONS COUNSEL

 

The Equity Group Inc.

 

Linda Latman, 212/836-9609

 

Bob Goldstein, 212/371-8660

 

www.theequitygroup.com

################# ########################################                  #       

______________________________________________________

 

Los Angeles. Secession Efforts Getting Closer-Crucial Vote Tomorrow

 

By PAUL WILBORN

.c The Associated Press

 

LOS ANGELES (AP) - This has always been the anti-city, a sprawling circus with no center ring, known not so much for its downtown towers as for the rings around it - including the San Fernando Valley, the vast suburbanesque tract that gave America the valley girl.

 

While the city south of the Hollywood hills attracted the wealthy, it is also flush with poverty and urban decay. By contrast, the valley is the 'burbs - a paved platform for strip malls and ranch houses set along roads aligned to allow easy development.

 

Almost since it was created by downtown real estate speculators in 1915, the valley has struggled for its identity. State laws quashed two serious secession movements in the 1960s and '70s, but now a vote on valley secession is one bureaucratic step away.

 

A regional board overseeing secession will decide tomorrow whether to place the San Fernando Valley city proposal on the November ballot. Decisions on similar efforts by Hollywood - the fabled heart of Los Angeles - and the San Pedro community at the city's harbor will follow in early June.

 

A San Fernando Valley city, which some have proposed calling Camelot, would have about 1.3 million residents and compete with Phoenix to be the sixth largest in the country. It would be larger than Boston, Detroit and St. Louis.

 

If the movements are successful, the shrunken Los Angeles would become the nation's third-largest city, behind New York and Chicago.

 

``People in the San Fernando Valley do not feel like we're part of LA,'' said Theresa L. Cannon, who believes secession would bring lower taxes and better services.

 

But valley resident Leslie Lee thinks a new city would have trouble duplicating current services.

 

``We're too big to spin off, and we're not totally prepared,'' she said.

 

Secession supporters say the city is too large and too unresponsive. Even anti-secessionists acknowledge that the valley - home of 33 percent of the city's population and 50 percent of its land - has fewer police officers, fewer libraries, parks and bus and mass transit lines than the communities on the south side of the mountains.

 

Mayor James Hahn and the city's political and business leaders plan to raise $5 million to convince valley voters that divorce is not the right decision. Hahn has been making at least one appearance a week at valley events, and says city officials have changed.

 

``This has happened because government hasn't responded in the past, but I think we're doing a lot of things differently,'' he said. ``We want to show we are going in a different direction.''

 

Hahn, who took office last summer, has encouraged neighborhood councils to give residents more direct access to city government, put valley leaders on key city committees and promised better transit, waste disposal and police protection.

 

Like many divorce battles, this one is about money, assets and identity. Police and fire stations, parks, civic buildings and other infrastructure, even the Hollywood sign are potentially up for grabs.

 

``Any time you go through a divorce, both sides end up with less,'' Hahn regularly warns his audiences.

 

Jeff Brain, a commercial leasing agent who has spearheaded the valley's secession movement, counters by saying the valley would pay the remaining city of Los Angeles $55 million a year for 20 years in what amounts to municipal alimony. The board overseeing secession considers the money reimbursement for lost revenues to the city, as required under state law.

 

Brain tells residents in communities that will remain in Los Angeles that secession will bring them a smaller, more efficient city.

 

``Valley secession won't cost you a thing,'' Brain said.

 

What promises to be a bitter campaign should do nothing to improve the image of a city famous for renegade cops, urban riots and the O.J. Simpson trial.

 

``It raises the questions: 'Is the place so bad that people have to leave? Is there no other way to solve problems than a divorce?''' said Doug Peterson, a senior policy analyst with the National League of Cities.

 

Nationally, urban affairs experts warn other cities not to be too smug. Los Angeles has exported everything from skateboards to facelifts, and secession could follow.

 

``Every city has some neighborhood that doesn't feel loved. And every one of those cities will be looking with interest at what LA is doing,'' said George Thomas, an urban affairs professor at the University of Pennsylvania.

 

State laws around the country make secession virtually impossible. But with California opening up to secession, other states could follow, Thomas said.

 

Breaking up won't be easy. Under California law, a majority of voters in the breakaway areas, along with a majority of voters citywide, must approve secession. Recent polls show 59 percent of valley voters in favor of secession. Citywide, the support for secession has grown to near 49 percent, polls show.

 

With campaign kickoffs still a month away, many voters, like valley resident Arnold Snyder, are taking a laid-back approach.

 

``I'm going to go with the flow,'' said Snyder. ``It's going to always be LA. I don't care what you call it.''

 

 

 

 

California home prices hit new peak in April

 

By Michael Liedtke

ASSOCIATED PRESS

 

 

SAN FRANCISCO – Unfazed by the state's sputtering economy, California home prices accelerated to record highs in April as buyers continued to take advantage of the lowest mortgage rates in a generation, a real estate research service said Monday.

 

Although homes are less affordable than a year ago, they are still within the price range of more prospective buyers than other boom periods when interest rates were much higher, analysts said.

 

Propelled by the market's biggest sales spurt in 19 months, a mid- priced home in the San Francisco Bay area sold for $402,000 in April – topping the previous peak of $386,000 in March 2001, according to monthly statistics compiled by DataQuick Information Systems.

 

The numbers told a similar story in Southern California, where April sales translated into the second busiest month since DataQuick began tracking the market in 1988.

 

Southern California prices also climbed to a new high, hitting a mid- range of $258,000 – up $1,000 from the high established in the previous month, DataQuick said. Southern California home prices have climbed 16 percent over the past year.

 

DataQuick's survey is based on all home and condominium sales recorded by county recorders.

 

The news wasn't good for homeowners everywhere. The weakest pockets were in some of the areas that benefited most from soaring stock prices that produce major windfalls during the last 1990s.

 

A mid-priced home in Marin County, always among the state's most expensive markets, has fallen 3.5 percent over the past year to $577,000 in April, DataQuick said. Mid-range home prices in Santa Clara County, the heart of the Silicon Valley, are down 1.7 percent from a year ago to $458,000.

 

Ventura County's housing market enjoyed the biggest gains, with mid- range prices rising 24 percent from a year ago to $317,000. Other robust markets included Riverside County, where a mid-priced home appreciated by 15 percent to $202,000, and San Diego County, where the median home priced climbed 12.5 percent to $297,000.

 

No matter how it's measured, the housing market has overcome the economic malaise that has bumped people onto the unemployment line during the past year and left the California government grappling with its biggest budget deficit since World War II.

 

The reported values could go even higher later this week when the California Association of Realtors releases its April survey. That industry group typically generates slightly higher sale prices because it bases its statistics exclusively on single-family homes and doesn't include all recorded transactions.

 

"It is very euphoric housing market right now," said Leslie Appleton- Young, the chief economist for the California Association of Realtors. "That's exciting, but there should be some caution here too."

 

About 29 percent of California households could afford a mid-priced home in March, down from 34 percent a year ago, the realtors' group said.

 

While a continuing rise in home prices would be good news for owners, more increases threaten to make the market less affordable to prospective buyers where demand already outstrips supply.

 

"At some point, the lack of affordability in the market becomes an Achilles' heel that could cripple the economy," Appleton-Young said.

 

Despite the recent run-up in prices, new homeowners aren't digging as deeply into their pockets to pay the monthly mortgage because interest rates have dropped dramatically during the economic slowdown.

 

Although they have risen slightly from the lows reached late last year, 30-year mortgage rates remain well below 7 percent. The rates enable buyers to qualify for larger loans, translating into higher prices that require lower mortgage payments than in the market's previous peak.

 

The mortgage for a Bay Area home bought in April required a monthly payment of $2,045, up 4 percent from a year ago – but still well below the peak monthly payment of $2,124 in May 2000, DataQuick said.

 

Southern California home buyers who got a mortgage in April locked into monthly payments of $1,313, a 13 percent increase from a year ago. The mortgage payments for a mid-priced Southern California home peaked at $1,360 in April 1989, DataQuick said.

 

The stock market slump of the past two years also has helped boost the housing market.

 

"If you have any kind of cash sitting around, the California real estate market is probably about as good a thing as you can find right now," said DataQuick analyst John Karevoll.

 

 

 

 

On The Net:

 

www.dataquick.com

 

www.car.org

 

------------------------------------------------------------------------------------------------------------

 

 

 

 

---------------------------------------------------------------------------------------------------- 

 

To reach Leasing News, please e-mail kitmenkin@leasingnews.org or use the

contact form at www.leasingnews.org   Fax messages are often difficult to read.

Telephone calls result in “telephone tag” and often take longer to respond due

to time differences and limited time.  E-mail is always best.

 

Leasing News is sent ONLY to people who have requested it.  We do not Spam.

You register using our website www.leasingnews.org or contacting 

kitmenkin@leasingnews.org. . Our subscriber list is NOT made available to

the third parties. Subscription and Removal Assistance can

be accessed through out contact site at www.leasingnews.org or you may

directly contact kitmenkin@leaisngnes.org with you name as you registered it

along with you-mail address ( our list is kept by the name registered, not

by company or e-mail address. We have great difficulty in finding your

e-mail address without your name. If you have signed up and are not

receiving Leasing News, your carrier may be blocking the "mass mail".  You

may notify your carrier or send an  e-mail to us for verification, if

needed.  Online version of this publication is at

http://www.leasingnews.org.

 

Policy Statement

 

Policy Statement---Nothing is sent out that is not "fair." Always unbiased

reporting. Fairness always. If it is questionable, we will ask the writer's

permission to quote them. We will print information without attribution, but

feel as long as we do not name the person who sent it, we can use the

information. Any information we think is suspicious, we try to have if

substantiated first by at least two reliable people. We will not purposely

send out "negative" news. We prefer

"positive" news. We have no "axe" to grind or are not paid or seek or accept

any remuneration for product or promotion. We do not Spam anyone. To be

added to the mailing list, you must request it. We do not send anything

about our company or personal e-mail or jokes to the leasing news list. We

do not share our mailing list with anyone. We try not to send more than one

report a day, if at that, unless an "alert." We follow Internet

Netiquette at all times. Our sole purpose is to provide communication to

improve our profession. We reserve the right to deny sending the newsletter

when requested. We reserve the right to edit or delete an opinion that is

not in good taste or is outright derogatory.

Leasingnews.org

 


Virus Info Center
 
Top Stories


www.leasingnews.org
Leasing News, Inc.
346 Mathew Street,
Santa Clara,
California 95050
Voice: 408-727-7477 Fax: 800-727-3851
kitmenkin@leasingnews.org