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notes 2a-2i, referred to as the balloon notes) aggregating
$19,990,51213 (the balloon notes, documenting the balloon loan), and
(ii) a junior recourse note in the amount of $87,429,31914 (the term
note, documenting the term loan). The bank loan, the balloon loan,
and the term loan all were tied to the equipment lease.
B. The Equipment Lease
Immediately after purchasing the equipment, Andantech leased
such equipment to Comdisco pursuant to the equipment lease; this
was a net lease. The equipment consisted of 40 IBM mainframe
computers and associated ancillary equipment. There were nine
different models–-four were IBM 9121s and five were IBM 9021s (the
IBM 9021s were larger and more powerful than the IBM 9121s). The
equipment lease separated the equipment into nine categories (A
through I) by model type. Equipment in categories A through D
included the IBM 9121s and equipment in categories E through I
included the IBM 9021s. The term of the equipment lease varied
from 41 to 47 months, depending upon the category of equipment.
During the term of the lease, Comdisco could, at its expense,
add or install upgrades on the equipment. Any upgrade did not
13 Interest accrued on the principal at 9 percent per
annum, compounded monthly. Accrued interest was payable at
maturity.
14 Principal and interest were payable in monthly
installments equal to the monthly rent due from Comdisco before
the early termination date under the lease. Interest was payable
on the principal at 5 percent per annum, compounded monthly,
subject to any increase in rent as provided in the lease.
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