Comdisco Holding Company, Inc. (OTCQB: CDCO) and (OTCQB: CDCOR)
(“Comdisco”) announced today that its Board of Directors has declared a
cash dividend of $2.3455 per common share, totaling approximately
$9,450,000, to be paid on March 12, 2015 to common stockholders of
record as of March 2, 2015. Comdisco has approximately 4.0 million
shares of common stock outstanding. Computershare will serve as paying
agent for the dividend to common stockholders. Comdisco intends to treat
this distribution for income tax purposes as part of a series of
liquidating distributions in complete liquidation of the company.
Comdisco also announced today that its Board of Directors has approved a
cash distribution of $0.03739 per contingent distribution right,
totaling approximately $5,550,000, to be paid on March 12, 2015 to
contingent distribution rights holders of record as of March 2, 2015.
This distribution relates to distribution of excess cash from the estate
of Comdisco, Inc. Comdisco has approximately 148.4 million contingent
distribution rights outstanding. Computershare will serve as paying
agent for the distribution to contingent distribution rights holders.
Contingent Distribution Rights – Effect on Common Stock
The Plan entitles holders of Comdisco’s contingent distribution rights
to share at increasing percentages in proceeds realized from Comdisco’s
assets after the minimum percentage recovery threshold was achieved in
May, 2003. The sharing percentage is at 37%, which is the maximum
sharing percentage. The amount does not reflect any potential net
recoveries and distributions by the litigation trustee to the general
unsecured creditors. Such additional net recoveries and distributions,
if any, are currently not determinable.
As a result of bankruptcy restructuring transactions, the adoption of
fresh-start reporting, multiple asset sales, and the adoption of
liquidation basis of accounting, Comdisco’s financial results are not
comparable to those of its predecessor company, Comdisco, Inc. Please
refer to Comdisco’s quarterly report on Form 10-Q filed with the
Securities and Exchange Commission (“SEC”) on February 13, 2015 for
complete financial statements and other important disclosures.
Comdisco emerged from Chapter 11 bankruptcy proceedings on August 12,
2002. The purpose of reorganized Comdisco is to sell, collect or
otherwise reduce to money in an orderly manner the remaining assets of
the corporation. Pursuant to the Plan and restrictions contained in its
certificate of incorporation, Comdisco is specifically prohibited from
engaging in any business activities inconsistent with its limited
business purpose. Accordingly, within the next few years, it is
anticipated that Comdisco will have reduced all of its assets to cash
and made distributions of all available cash to holders of its common
stock and contingent distribution rights in the manner and priorities
set forth in the Plan. At that point, the company will cease operations.
The company filed on August 12, 2004 a Certificate of Dissolution with
the Secretary of State of the State of Delaware to formally extinguish
Comdisco Holding Company, Inc.’s corporate existence with the State of
Delaware except for the purpose of completing the wind-down contemplated
by the Plan. Under the Plan, Comdisco was charged with, and has been,
liquidating its assets. While there have been no changes either to the
Plan, or Comdisco’s obligations under it, Comdisco adopted ASU 2013-07, Liquidation
Basis of Accounting as of October 1, 2014 and accordingly,
determined that liquidation was imminent. Therefore, effective October
1, 2014, Comdisco applied the liquidation basis of accounting on a
prospective basis, and, as such, the results of operations under
liquidation basis of accounting are not comparable to the historical
results under a going concern basis.
The foregoing contains forward-looking statements regarding Comdisco.
They reflect the company’s current views with respect to current events
and financial performance, are subject to many risks, uncertainties and
factors relating to the company’s operations and business environment
which may cause the actual results of the company to be materially
different from any future results, express or implied by such
forward-looking statements. The company intends that such
forward-looking statements be subject to the Safe Harbor created by
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. The words and phrases ''expect,''
''estimate,'' and ''anticipate'' and similar expressions identify
forward-looking statements. Certain factors that could cause actual
results to differ materially from these forward-looking statements are
listed from time to time in the company’s SEC reports, including, but
not limited to, the Annual Report on Form 10-K for the fiscal year ended
September 30, 2014 and Form 10-Q for the fiscal quarter ended December
31, 2014. Comdisco disclaims any intention or obligation to update or
revise any forward-looking statements whether as a result of new
information, future events or otherwise.