The board of bankrupt US leasing company Continental Information Systems Corp, Syracuse, New York has approved a proposal for the sale of substantially all the assets to former ITT Corp chairman Harold Geneen’s CIS Acquisition Corp, a company formed for the purpose. The attraction to the board is that Geneen intends to keep the present management of the company, which is currently operating under Chapter 11 bankruptcy protection, intact. The proposed price is $420m, subject to adjustment, and $75m is to be paid in cash, $345m in unsecured promissory notes that will be hard to value. Continental said the proceeds may not be sufficient to satisfy the claims of all creditors in full and, consequently stockholder participation in the proceeds of the sale is uncertain. Its unsecured creditors have claims totalling some $400m against the firm.
