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Technology / AI and automation

CONTINENTAL INFORMATION SYSTEMS DEFAULTS ON INTEREST PAYMENT

The number two US player in the computer leasing market, Continental Information Systems Corp, Syracuse, New York, which has already cut its workforce by 300 people, 25%, to conserve cash, is in even deeper trouble after it defaulted on a $3.8m interest payment on a loan from Prudential Insurance Co of America. The payment was due January 1, and the 10-day grace period has now elapsed. In an effort to retrieve its position, Continental has entered preliminary discussions to sell either the company or of some of its business units. It is said to have approached both the biggest US computer leaser, Comdisco Inc, and Econocom International NV of Paris, but none of the parties is commenting. Continental says the talks also involve the possibility of additional equity investment in the company, and senior managers have outlined a proposal for the immediate restructuring without going in to Chapter XI bankruptcy proceedings. Chief financial officer Thomas Prinzing has resigned that position but will continue as senior vice-president devoting all his time to the restructuring plan. Richard Oliker resigned as a non-executive director, since he is also a trustee of Norstar Bank, a lender to the company, and he wish ed to avoid any conflict of inter est that might arise. Eric Will has been named executive vice-pres ident John Bartolo, who held that post and was also chief operating officer, resigned on January 6 to pursue other interests. Saleable assets on the Continental books in clude a sound Canadian subsidiary and some old Boeing Co 727 aircraft that are in service with airlines.

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CBR Staff Writer

CBR Online legacy content.