Comdisco Chapter 11 case closed; stock, CDR distributions announced

By Caroline Salls

Pittsburgh, July 13 – Comdisco Holding Co., Inc. and Comdisco, Inc. obtained a final decree and order on Tuesday from the U.S. Bankruptcy Court for the Northern District of Illinois that closes the Chapter 11 case of Comdisco, Inc., according to a news release.

In addition, the company said the order authorizes it to complete outstanding administrative tasks, approves the proposed manner of disposing of and disbursing remaining assets, confirms the exculpation of plan implementation parties, terminates the services of the claims and noticing agent and disbursing agent and retains jurisdiction to enforce or interpret the court’s own orders pertaining to the Chapter 11 cases.

In addition, Comdisco said its board of directors declared a final cash dividend of $4.5642 per share of common stock, totaling $18.39 million, to be paid on Aug. 5 to common stockholders of record as of July 25.

The company said it has roughly 4 million shares of common stock outstanding.

Comdisco intends to treat this distribution for income tax purposes as the final payment in a series of liquidating distributions in complete liquidation of the company, according to the release.

The board also approved a final cash distribution of $0.07707 per contingent distribution right (CDR), totaling $11.13 million, to be paid on Aug. 5 to CDR holders of record as of July 25.

Comdisco said it has 144.4 million contingent distribution rights outstanding.

Computershare will serve as paying agent for the final cash distribution and the final CDR distribution.

According to the release, the final distribution does not include common stock and CDRs held by the Comdisco Litigation Trust or any CDRs held by the company. After the final distribution, the outstanding shares of common stock and the outstanding CDRs will be cancelled and deemed null, void and worthless.

The company said it expects to terminate its 12(g) registration with the Securities and Exchange Commission no later than Aug. 11. After that, Comdisco will no longer be a public company and not be required to file future periodic reports with the SEC.

Comdisco said the plan entitles holders of its CDRs to share at increasing percentages in proceeds realized from its assets after the minimum percentage recovery threshold was achieved in May 2003.

The sharing percentage is currently at 37%, which is the maximum sharing percentage, and the final CDR distribution includes a $370,000 CDR payment, based on the likely anticipated future distribution to the general unsecured creditors reported by the litigation trustee of trust assets.

Comdisco emerged from Chapter 11 bankruptcy on Aug. 12, 2002. Comdisco Holding is a Rosemont, Ill., company formed to sell the assets of its predecessor Comdisco, Inc. and distribute the proceeds.

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