Uneven, But Positive Net Results for Leasing Industry at Midyear
September 01, 2003
Consistent with the turbulent and uneven economy as a whole, the up and down results contained in the Equipment Leasing Association's Quarterly Performance Indicators Report (PIR) for the second quarter of 2003 should not come as much of a surprise. In the final analysis, industry members should take solace in the fact that while it has been a fairly wild past 12 months, there has been a net gain in two of the most important indicators: Total Net Portfolio and Total New Business. Certain other indicators, however, produced more mixed results. Specifically, employment in the industry is down while charge-offs are up when compared with the figures from the second quarter of 2002.
A Practical Guide to Software Leasing
September 01, 2003
Although the demand for software financing and leasing continues to grow at a tremendous rate, software financing and leasing remains one of the most challenging and least understood areas of leasing. The focus of this article is on the financing and leasing of 100% software, although there is some discussion of mixed leases of equipment and software. The goal is to provide lessors with a practical guide to the issues arising in a typical software financing or leasing transaction. The emphasis is on direct leases between a lessor and a lessee, as opposed to a vendor finance arrangement where the software licensor is also a party.
In the Marketplace
September 01, 2003
Highlights of the latest equipment leasing news from around the country.
Plan Ahead: Third Circuit Denies Tax Exemption for Asset Sales Made Before Chapter 11 Plan
September 01, 2003
It has been often said that Chapter 11 of the Bankruptcy Code can be summarized as the "Three Rs," precisely "reorganize, restructure, and rehabilitate." In practicality, this includes steps such as "reducing headcount," (firing people, without the euphemism), streamlining operations, reordering debt, and so on. One of the most critical components of such lifesaving steps is the divestiture of assets, in plain English, selling off assets that are either unprofitable and unwanted burdens or those items that can fetch high prices that can add quickly to the cash reserves of a troubled company.
Cases in Court
August 26, 2003
Recent rulings of importance to your practice.
IN THE MARKETPLACE
August 26, 2003
Highlights of the latest equipment leasing news from around the country.
Fraud Claim Released in Settlement Agreement Preserved in Bankruptcy Proceedings
August 26, 2003
Suppose that a lessor has a legitimate fraud claim against its lessee. Also suppose that in an effort to save the costs of litigation, this lessor agrees to settle the matter. The lessee executes a promissory note in favor of the lessor in exchange for a release. Now assume that the lessee not only defaults on its obligation under the promissory note, but also files for bankruptcy. As counsel for the lessor you feel safe assuming that the underlying fraud claim is nondischargeable under Section 523(a)(2)(A) of the Bankruptcy Code, and therefore the lessor's position is fairly strong. Well, in the jurisdiction of the Fourth and Seventh Circuits this assumption was incorrect before a recent ruling by the U.S. Supreme Court finally resolved this issue.
Lessors and Bankruptcy
August 26, 2003
Obtaining the authority to make Critical Vendor payments is becoming more 'critical' than ever in the early stages of a bankruptcy case. Bankruptcy proceedings are supposed to be fair and reasonably predictable. However, the fair and predictable system of who gets what and in what order is becoming a lot less clear due to recent high-profile cases involving Critical Vendor payments.
A Lease, or Not a Lease: That Is the Question
August 26, 2003
At its May 15, 2003 meeting, the Emerging Issues Task Force (EITF) of the Financial Accounting Standards Board (FASB) came to a consensus on Issue No. 01-8, 'When an Arrangement Contains a Lease,' ending almost two years of deliberations on the issue. As the name implies, the purpose of Issue 01-8 is to provide guidance to accountants to assist them in identifying when an arrangement, including one containing multiple elements, is a lease. Determining when an arrangement is (or includes) a lease can be a difficult and judgmental process. Although the guidance in Issue 01-8 will prove helpful to accountants in determining whether a certain population of transactions contains a lease, it will not remove the difficulty or judgment involved in determining whether a lease exists for a large number of structured transactions.
THE LEASING HOTLINE
August 18, 2003
Highlights of the latest commercial leasing cases from around the country.
