Comdisco declares dividend, distribution to contingent rights holders

By Carlise Newman

Chicago, Aug. 18 - Comdisco Holding Co. Inc. said it will make a cash payment of $0.0878 per right on its contingent distribution rights, payable on Sept. 8 to contingent distribution rights holders of record on Aug. 28. The cash payment has been computed in accordance with the reorganization plan, and is as a result of the increased recovery to unsecured creditors. The company has 152.8 million contingent distribution rights outstanding.

Its board of directors also declared a cash dividend of $47.60 per share on the outstanding common stock, payable on Sept. 8 to holders of record on Aug. 28. Comdisco Holding Co. has 4.2 million shares of common stock outstanding.

After giving effect to the dividend and the distribution from the company's disputed claims reserve made on Aug. 14, the value of distributions to the company's initially allowed general unsecured creditors is $3.411 billion. The recovery to the creditors has increased to 94%, from the 89% recovery reported in the form 10-Q for the third fiscal quarter ended June 30.

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