Comdisco sees 99% to 103% recovery for unsecured creditors

New York, March 2 - Comdisco Holding Co. Inc. said it now expects the general unsecured creditors of Comdisco Inc. will receive recovery in the range of 99% to 103%.

So far the distribution is $3.9 billion or a recovery of 95.4%, based on a net present value calculation, the company said in a filing with the Securities and Exchange Commission.

General unsecured creditors initially received cash, senior notes, subordinated notes, certain trust assets and new common shares in Comdisco Holding. The senior notes were repaid on Oct. 21, 2002 and the subordinated notes on April 28, 2003. From May to December 2003 Comdisco Holding paid $618 million of dividends.

Comdisco Holding is now estimating that former common stockholders of Comdisco Inc. will receive a further $47 to $164 million, depending on the resolution of disputed claims. In total the payments - which will be made through the contingent distribution rights that were distributed to stockholders - will be between 13 and 32 times the amount estimated in the company's plan of liquidation.

Holders of the contingent distribution rights received $26.5 million between May and December 2003, and the company has already announced a payment of $2.8 million for March 4 for a total of $29.3 million compared to the $6.0 million estimated in the plan.

Comdisco Holding also estimates making a further $62 to $212 million of dividend payments on its common stock.

As of Dec. 31, Comdisco had $166 million of assets plus $131 million of cash. The company now exists only to liquidate its assets.

By June 30, the company estimates the remaining assets to be monetized will be less than $115 million and could be less than $75 million.

As of Feb. 13, a total of $289 million of disputed claims remained.

Comdisco filed for Chapter 11 on July 16, 2001 and emerged on Aug. 12, 2002.

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