Comdisco filed a proposed joint plan of reorganization in late April with the federal bankruptcy court for the Northern District of Illinois.
The Rosemont, Ill., computer services company said its plan calls for Comdisco to operate with three units and continue to sell or run-off all of its asset portfolios, a process which the company expects will take up to three years to complete.
The company has been selling assets since filing for Chapter 11 bankruptcy protection last July. Comdisco's international operations aren't included in the Chapter 11 reorganization.
Comdisco filed its plan with the Securities and Exchange Commission in connection with a form 8-K filing, and the company will mail the plan to creditors and voting shareholders following bankruptcy court approval.
The company said a hearing on the disclosure statement is scheduled for May 31, and a confirmation hearing is scheduled for July 30.
Comdisco said all of its businesses, including those that filed for Chapter 11, are conducting normal operations.
In April, Comdisco agreed to sell some of its domestic health care leasing assets to GE Capital's Healthcare Financial Services unit for $165 million and the assumption of debt. GE capital is a unit of General Electric Co.
Comdisco expects to cut about 180 positions, or 20 percent of its staff, as part of its restructuring.
Comdisco's plan proposes that its general unsecured creditors receive their prorata share of an initial cash distribution, which the company plans to fund by current cash on hand from asset sales and cash flow from operations, less amounts necessary to establish a cash reserve for other payments and operations.
Comdisco expects to make an initial cash distribution of about $2 billion, if its plan is approved, while it expects the ultimate recovery to unsecured creditors will be about 87 percent of their claims, subject to provisions.
Copyright © 2002 The Associated Press. All rights reserved. The information contained in the AP News report may not be published, broadcast, rewritten or redistributed without the prior written authority of The Associated Press.
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