SCOTTSDALE, Ariz.--(BUSINESS WIRE)--The FINOVA Group Inc. (FNVG.OB) (the “Company”) announced today that, in accordance with an order of the United States Bankruptcy Court for the District of Delaware, issued on December 4, 2006, on November 17, 2009 the Company filed a Certificate of Dissolution with the Secretary of State of the State of Delaware and has accordingly dissolved. At the close of business on November 17, 2009, the Company closed its stock transfer books and ceased recording transfers of shares of its common stock.
The Company has substantially completed the liquidation of its assets and paid all its remaining unrestricted cash ($57.8 million), less certain reserves ($2 million), to Wilmington Trust Company, the Collateral Trustee (the “Collateral Trustee”) for its 7.5% Senior Secured Notes, which matured on November 15, 2009 (the “Senior Notes”). The Senior Notes currently have a total outstanding principal and unpaid interest balance of approximately $1.5 billion.
Holders of the Company’s common stock will not receive any liquidating distributions. Holders of the Company’s common stock may have certain rights, however, to receive distributions related to principal payments on the Senior Notes, depending upon the results of litigation with respect thereto as disclosed in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2009. As disclosed in such Form 10-Q, on October 21, 2009, the United States Court of Appeals for the Third Circuit entered a judgment and issued an opinion denying the equity committee’s appeal, affirming the rulings of the United States Bankruptcy Court for the District of Delaware and the United States District Court for the District of Delaware that the stockholders of the Company were not entitled to distributions under the Indenture governing the Company's 7.5% Senior Secured Notes. The equity committee may seek to have the appeal considered by the United States Supreme Court by filing a petition for writ of certiorari by January 19, 2010, or later in certain circumstances.
In connection with the Company’s dissolution, the Company transferred the approximately $81.2 million of restricted cash that was being held in reserve to the Collateral Trustee, pending resolution of the litigation regarding distributions to FINOVA’s stockholders. If it is finally determined that the stockholders are not entitled to such funds, the Collateral Trustee will transfer the $81.2 million to The Bank of New York, in its capacity as Indenture Trustee for the Senior Notes for distribution to the holders of the Senior Notes. A press release will be issued on behalf of the Company announcing the results when this litigation is ultimately resolved.
After November 30, 2009, all correspondence and communications with the Company should be directed to 20235 N. Cave Creek Road, Suite 104, Box 601, Phoenix, Arizona 85024.