Comdisco Holding to make $15 million of dividend and cash payments

By Caroline Salls

Pittsburgh, Feb. 20 – Comdisco Holding Co., Inc.’s board of directors declared a cash dividend of $2.3455 per common share, totaling $9.45 million, to be paid to common stockholders and a cash distribution of $0.03739 per contingent distribution right, totaling $5.55 million, to be paid to contingent distribution rights holders, according to a news release.

Both payments will be made on March 12 to holders of record as of March 2.

Comdisco said it has roughly 4 million shares of common stock outstanding and 148.4 million contingent distribution rights.

Computershare will act as paying agent for the dividend to common stockholders and the cash payment to contingent distribution rights holders.

The company said it plans to treat the cash dividend distribution for income tax purposes as part of a series of liquidating distributions in complete liquidation of the company.

According to the release, the cash distribution will come from excess cash from the estate of Comdisco, Inc.

The company said its bankruptcy plan allows the holders of contingent distribution rights to share in proceeds realized from Comdisco’s assets after a minimum percentage recovery threshold was achieved in May 2003.

Comdisco said the sharing percentage is 37%, which is the maximum sharing percentage.

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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