1. New
Opportunities Emerge in Wind Power as Electricity Generation Soars
to Record Levels
Once just a fad to
some critics in the 1970s, wind power generation has become a real
moneymaker with great potential for financiers and developers
worldwide. Wind power refers to the generation of electricity by
windmills. The windmills rise as high as 400 feet over land or sea.
They consist of turbines that generate electricity by the force of
wind turning blades that look like propellers. See:
Wind power generates income, by James R. Healey,
USA Today, August 26, 2002
Worldwide Application of Wind Power
In the last two weeks, the United Nations has held its World Summit
on Sustainable Development in Johannesburg, South Africa. The
Summit's chief, Nitin Desai, reportedly said that renewable energy,
especially wind power, can help rescue "two-billion-plus people
outside the modern energy net." See: Second Wind for Wind Power,
The Wall Street Journal (S.W. Ed.), August 27, 2002; Section
A:10 (Col. 3).
Although Desai may have been referring to Africa's need for wind
power, plans exist in Canada, Denmark, Japan, Britain, India, Spain
and the United States to build windmills to meet local energy needs.
For example, developers want to build up to 600MW of renewable
energy on the island of Tasmania after obtaining approvals to
interconnect with the nearby mainland power grid of Australia. See:
Global Power Report, August 15, 2002, page 6 (The McGraw-Hill
Companies, Inc.). The UK's Department of Trade and Industry has
promoted a plan to install 6,000 plus high-output turbines off of
the shores of Britain's seaside resort town of Skegness. See: Sea
of Change, by Alex Markels, Wired Magazine, April 19,
2002 (http://www.wired.com).
India and Brazil both plan significant developments. India aims to
install around 13,000 megawatts (MW) eventually and provide a
"cocktail of incentives for the wind-power industry, from tax
credits to financing," to help encourage development and moderate
price supports. See: The Wall Street Journal (S.W. Ed.),
August 27, 2002; Section A:10 (Col. 3).
Record-Breaking Growth in 2001
The new plans follow the rapid growth of wind power developments in
the last few years. Wind power now furnishes at least 24,000MW of
power globally, sufficient power for about six million homes. In
2001, developers installed a total of 1,695MW of new wind turbines
to supply the needs of 475,000 average American households. Texas
alone built wind plants with over 915MW of power in 2001. Although
2002 has slowed a bit, developers have expressed renewed interest in
windpower.
Feast or Fancy?
Is wind power just a passing fancy, again? Is the 2001 record a
feast of development driven by the then expiring tax credits for
renewable energy resources? According to Dan Reicher, a former U.S.
Assistant Secretary of Energy and Executive Vice President of
Northern Power Systems, "Renewable energy (such as wind power) is
here to stay….Unlike some of the failed experiments from the late
'70s, we now have technologies that are reliable and
cost-effective." See: Getting serious about motley fuels - Change
is afoot in the world of electricity generation, Red Herring
Magazine, by Lee Bruno, July 17, 2002. In short, wind power is
neither feast nor fancy. It is a useful power source with vast
potential.
Advantages and Challenges
Wind power generation presents a number of advantages and challenges
for developers, lessors and lenders. Consider the following items in
evaluating any potential project (not in any order of priority):
*Advantages of Wind Power
- Favorable Laws. Governments
worldwide offer wind power favorable regulatory treatment, tax
benefits and subsidies. For example, Congress is now considering
legislation that would extend for three years a credit available
for producing electricity from wind (see Section 1901 of
H.R. 4, as
adopted by the Senate). Current law provides favorable tax
treatment and other incentives for other forms of renewable energy
as well in
related
legislation. The tax credit portion of new legislation has
been valued at 1.8 cents per kilowatt-hour for 10 years, which is
about half the useful life of a new wind turbine. The incentive
reduces the cost of wind power to about 4 cents per kilowatt-hour.
By comparison, power generated from natural gas-fired power plants
costs 3 cents per kilowatt-hour. See:
Wind power generates income.
- Reliable
Technology. Wind turbines and related machinery have become
more technologically reliable, productive and efficient. By one
report, rotors that span the length of a Boeing 747 aircraft can
generate 120 times more electricity than 1981 vintage units at
only 20 times the cost. This ratio means that the cost to produce
wind power since 1981 has dropped 80 percent.
- Competitive
Cost. As a result of improved technology, price supports, tax
benefits and favorable regulatory treatment, electricity from wind
power can be produced at a competitive cost.
- No Harmful
Emissions. Wind power machines do not produce harmful
environmental emissions like hydrocarbon power plants.
- Flexible
Siting. Developers can install small scale,
decentralized systems in developing countries and rural areas, as
well as on seashores and in windy seas.
*Challenges to Wind Power
- Regulatory
Support Expires. Government subsidies create boom and bust
cycles in developing renewable resources when tax and other
benefits often expire after short periods of availability.
- Environmental
Concerns Exist. Windmills do create environmental concerns.
They kill birds (by striking them), affect fisheries (in water
installations) and create noise (a flapping sound as the propeller
turns).
- Animosity with
Hydrocarbon Forces. The hydrocarbon guys don't care much for
renewables resulting in animosity and competition. As an
illustration, the United States, Saudi Arabia and wealthy nations
voted to weaken proposals for rapid development of renewable
resources at the Sustainable Development Conference referred to
above. See: U.S., others oppose plan to expand renewable energy
sources, Dallas Morning News, August 28, 2002, Page 10A (Col.
1).
-
Availability/Predictability. Wind power faces obstacles of
nature: A windmill can't produce power when the wind doesn't blow
(that is, when the wind falls under eight miles per hour).
Consequently, the power, which you can't store like grain in a
silo, may not be available when needed on a predictable basis.
- Expensive to
Build. Wind machines are relatively expensive to build (around
$1 million per megawatt) as contrasted with natural gas-fired
power plants ($550,00 to $750,000 per megawatt). Likewise, because
wind plants appear in remote places, developers often confront
substantial governmental approvals and cost for transmission
lines. See:
Wind power generates income.
*Tip: Wind power has
generally advanced to the point that it is now technologically
reliable and commercially financeable. In a very recent transaction
in which I participated, a well-known energy developer successfully
closed a project financing of a wind farm in Texas consisting of
over 110 windmills. The project passed the financial, regulatory,
legal, structuring and other requirements to satisfy the lender to
provide a substantial amount of debt relative to the value of the
wind farm. If you want to develop or finance a wind power project,
closely evaluate the cost-effectiveness of the technology, the cash
flows from operations, the quality of the credit of the power
purchaser (accept strong credits only) and the regulatory aspects.
You can use project financing if the project alone can pay for the
financing and operational costs. When in doubt, as an investor or
lender, you may need to ask for an increase in cash reserves or
credit support from the developers or other parties.
I have much more research and information to share with you.
Since space limits this article, please feel free to call me at
(214) 758-1545 to discuss this subject and potential opportunities
for you.
Thanks go to my partner,
Carolyn McIntosh,
an environmental lawyer who works with me on various regulatory and
approval issues arising from power projects. Carolyn provided
research and ideas for this article. Thanks also to Dave Spalding at
Sea Energy Generation, Inc.
1204ds@gte.net, an up and coming wind power developer for
providing research and personal market insights for this article.
[Top]
2. Airline
Woes Have Harmful Ripple Effects on Airports and Their Tenants
In mid-August, US
Airways filed for bankruptcy and in the same period UAL Corp. warned
that it may be next. See: UAL Warns of Chapter 11 Filing,
The Wall Street Journal (S.W. Ed.), August 15, 2002; Section A:3
(Col. 1). In the July issue of BLN, I suggested that the major
network airlines would pay a high price for the success of the
discount carriers such as Jet Blue and Southwest. See:
Discount Air Carriers Take
Off. But the price that airlines pay will also adversely affect
airports and their revenues. Tenants at the airports have suffered
due to a decline in traffic and increased security. Airports have
had to prepare to address defaults and bankruptcies by their tenants
and some airlines. As a result, ratings of airport bonds may even be
at risk. All of these challenges create some vulnerability for
airports.
In general, according to
Standard & Poor's,
airports are not at as much risk as the airlines because the
airports can raise fees. However, tenants do not have the same
protection as the airport to which they pay rent. See: Some
airports vulnerable in airline bankruptcies, The Wall Street
Journal (S.W. Ed.), August 14, 2002; Section A:13 (Col. 2).
In an ironic twist, one industry consultant suggests that airline
bankruptcies may be positive for airports. Dan Ochse, at the firm of
Leigh Fisher Associates in San Mateo, California, said that "If you
don't have healthy airlines, it's very difficult to implement
improvements at airports." Chapter 11 filings will help the airlines
reorganize and emerge in better condition. See: Some airports
vulnerable in airline bankruptcies, above. According to Michael
E. Levine, a former airline executive and law professor at Yale
University, the network airlines must restructure to survive. See:
Another Airline Nose-dives. Who's Next, by Linda Prospero and
Karen Pierog, Reuters, August 15, 2002.
It appears inevitable that turbulence will be felt on the ground
for some time to come. Airport tenants will undoubtedly feel these
forces and have to adjust or perish. The network carriers such as
American, United, Northwest, Continental, Delta and US Airways have
an even more staggering task ahead. Airports will buffeted by the
winds of change, but perhaps healthier airports, like stronger
airlines, will emerge because of it.
*Tip: Airports should
actively assess the potential for tenant and airline defaults, and
hire competent bankruptcy counsel to make appropriate claims or
plans to participate in any tenant or airline bankruptcy. For
assistance in this area, you may contact my partner,
Clifton Jessup, the
head of our Bankruptcy Group, or me at (214) 758-1545.
[Top]
3. Corporate
Ethics Hit Prime Time: How to Write and Use a Code of Ethics in Your
Business
Since the early
1970s, businesses have learned that they can "do well by doing
good." Community involvement, environmental activism and pro bono
efforts have evidenced the best of corporate responsibility. Such
behavior seemed like good business. Now, however, in the shadow of
the Enron debacle, companies in America have been called on to do
better by writing and enforcing codes of ethics. The Securities and
Exchange Commission (SEC), among others, will expect more honesty
and integrity from public (and other) companies. Grave consequences
may be imposed on those who cheat the system.
In July's BLN I wrote an article titled
"Will the Bad
Acts in Corporate America Ever Stop?" Perhaps I am an unceasing
optimist, but I think the worst of the corporate mischief is over
for now. In this challenging economy we should redouble our efforts
to rebuild confidence in our businesses and increase shareholder
value as well as profits.
*Tip: As a lender or a lessor,
perhaps your due diligence should now include asking whether your
borrowers or lessees have a code of ethics that they actively use
and enforce. Why bother asking about a code of ethics? You may say
that if a business has good numbers, a solid track record and
reliable management, isn't that good enough? Before you answer these
questions, ask this one: Is a negative or indifferent response
really prudent after the experiences we have endured with Enron,
Tyco, Xerox, Global Crossing and others who have been accused of
serious misdeeds? As we have seen, a more critical analysis of even
the largest and apparently the best companies may have become
essential. Insisting upon a review of a code of ethics may help you
make more sound business judgments about the character of your
customer as well as the reliability of their numbers.
Regardless of whether you borrow money or lend it, or seek lease
financing or provide it, you should consider writing or enhancing a
code of ethics for your organization. As a public company under the
jurisdiction of the SEC, the
Sarbanes-Oxley Act of 2002 ("Act") left you no choice. As of
January 26, 2003, each public company must adopt a code of ethics
for its principal financial officers or disclose the reasons why it
has failed to do so.
Here are some steps to take when establishing a code of ethics
for your organization:
- Write an Ethics
Code with High Ideals. Require appropriate corporate leaders
to write and approve a corporate ethics code. Ask the inside and
outside corporate lawyers to review and improve it. Make it clear,
powerful and simple. The code should infuse the organization with
high ideals. It should create clear expectations. For example, the
code could say that employees and leaders alike must perform
diligently with honesty, integrity and trustworthiness in the best
interests of the company and its investors. The code should
inspire ethical, character driven leadership. Frances Hesselbein
articulated this concept of leadership in her new book Hesselbein
on Leadership (Jossey-Bass 2002). See: Good leaders have
ethics, character, by Bruce Rosenstein, USA Today,
August 26, 2002.
- Establish
Minimum Standards of Behavior. Insist on fair and ethical
behavior by and among employees including the ethical handling of
actual or apparent conflicts of interest between personal and
professional relationships. See
Section 406(c)(1) of the Act. Demand respect for and
responsiveness to customers. Do not tolerate lying, cheating or
stealing. Respond with stern and appropriate penalties. Reward
positive behavior that exemplifies the values and standards that
the organization aspires to maintain. Require each financial and
executive officer to provide full, fair, accurate, timely, and
understandable disclosure to shareholders. See
Section 406(c)(2) of the Act.
*Tip: The Act requires
lawyers to report evidence of material violations of the securities
laws or breach of the fiduciary duty to a company's general counsel
or chief executive officer. If these officers do not respond
appropriately, the lawyer must go up to the board of directors or
audit board. The rules of ethics for lawyers, including Rule 1.6 of
the ABA Model Rules of Professional Conduct, will have to be changed
to allow lawyers to reveal confidences that previously lawyers had
to protect. See:
Big
Names, Big Topics.
- Appoint an
Ethics Officer. This individual should initiate and enforce
the ethics code. He or she should optimally have already achieved
wide respect in the organization. The Ethics Officer should have
also demonstrated how he or she adheres to the high ideals and
standards of corporate behavior.
- Distribute the
Ethics Code. Distribute the code to all new employees. Update
and redistribute it annually under the signature of the chief
executive officer and chief financial officer with a message about
its importance and content. Be prepared to provide it to anyone,
including lessors or lenders, who may want to do business with the
company.
- Train Employees
on Ethics. Identify qualified individuals in Human Resources
or outside your organization to train employees and infuse them
with a sense of purpose of your code. Involve senior executives
and the Ethics Officer. Include a mechanism for employees to
report red-flag behavior without retribution. Devise a means to
open channels of communications to help employees better
understand and participate in the code.
- Set the Tone
from the Top. Senior executives should lead from their posts
by imparting messages to employees about minimum standards and
high ideals. They should emphasize good ethics means good business
and reinforce an effective reporting system to eliminate
unacceptable behavior.
In the past, ethics codes may have been less important or
prevalent than they have become today. In the current environment, a
clear and powerful code of ethics may help restore confidence and
trust. A visible ethics program may even contribute to the profits
and extend the longevity of your enterprise. It's worth the effort
to implement one regardless of the legal requirements placed upon
you. See: Establishing
a Code of Ethics, Smart Pros Editorial Staff, August 1, 2002.
We look forward to helping you understand and adjust to the
requirements of the Act. For assistance with writing an ethics code,
please contact Greg
Walden at Patton Boggs who has written an extensive book on
ethics. For help with the Act, several people at Patton Boggs can
assist. Call me at (214) 758-1545 for more information.
[Top]
4. As We Pass
the First Anniversary of 9-11, Has Terrorism Insurance Become a
Non-Issue?
When I advise my
clients on terrorism and security risks to protect various assets
and operations, they evaluate the issues seriously and take
appropriate precautions. Their efforts include a close review of war
risk and other insurance coverage. But one writer recently asked:
"Does the market really believe that the risk of terrorism is higher
since Sept. 11?" See: How Big Is the Terrorism Insurance Problem,
The Wall Street Journal (S.W. Ed.), August 14, 2002; Section
A:13 (Col. 2).
A sampling of current situations makes the answer unclear at
best:
- New Legislation
on Terrorism. President Bush wants Congress to pass the
"Terrorism Risk Protection Act of 2002" or similar legislation
(H.R.3210, S. 2600) in the next month or so. According to
President Bush, until the bill passes, many new buildings will not
be built and they will not have terrorism coverage. See: Busy
Week for Oxley, Sarbanes Means Action on Terrorism Insurance
Unlikely, BNA Banking Report, Vol. 79, No. 4, July 22, 2002,
page 142. Nonetheless, the efforts of Congress on the bill stalled
before the summer recess. When they will act remains unknown. You
can figure that our corporate scandals and upcoming elections have
diverted the attention of Congress. Meanwhile, China extended war
risk coverage to its airlines. See: China again extends war and
terrorism risk insurance to airlines, Beijing, Business - AP
World Business, August 25, 2002.
- Commercial
Insurance Markets in Turmoil. The lack of federal legislation
on terrorism insurance has created great concern by the Council of
Insurance Agents and Brokers (CIAB).
The CIAB said in its second quarter report that "deep and
deepening distress of the commercial insurance markets" exists.
Until the terrorism insurance bill is passed, CIAB sees no relief
in sight for the commercial insurance market.
*Warning: Some companies have
used "captive" insurance subsidiaries to reduce insurance premium
costs and protect against risks that insurance companies will not
cover. Captives are insurance units owned by one company, to which
the captive provides "insurance coverage." A captive insurance
company covers first losses of between $5 million and $25 million
before other independent insurance responds to a loss. This strategy
presents the risk that the captive can't perform for corporate
reasons or because the insured parent bets, incorrectly, that the
cost to fund the captive will be less than the cost of paying
insurance premiums to an independent insurance company. Therefore,
if a company offers you coverage by its captive, look closely before
you accept it. See: Risky Game: Companies Scrimp on Insurance
Costs, The Wall Street Journal (S.W. Ed.), August 1,
2002; Section C:1 (Col. 1).
- Stadium Loses
Terrorism Coverage. Tampa Bay Stadium recently lost its
insurance coverage as a result of lingering security risks related
to the September 11 attacks. It may not secure terrorism insurance
once it regains coverage. It is estimated the stadium will face a
30 percent increase in premium costs on securing coverage. See:
Tampa Stadium Loses Its Insurance, Associated Press, August
27, 2002.
- Security
Planning For Cargo. Chubb Insurance Group urges the creation
of a complete security plan for cargo shipments in light of
September 11. Chubb stated that "Not a single company can afford
to become complacent just because 12 months have passed without a
terrorist incident on our soil."
*Tip: Chubb suggested, among
other measures, to:
- perform careful
employee background checks;
- expedite cargo
shipments to minimize the opportunity for intervention by a
terrorist force;
- develop unique
and rapid loading, transfer and unloading plans for all cargo
including chemicals that terrorists can use for biological
weapons; and
- conduct audits
to assure conformance of security procedures to your plan.
See: Chubb Group of Insurance Companies: Companies Urged to
Develop an End-to-End Security Plan, Business Wire, August 29,
2002.
- War Risk
Insurance For Business Aircraft Available. War risk hull
(property) and liability insurance coverage for terrorism and war
risk have once again become generally available in the United
States for business aviation. The insurers terminated the coverage
for many insureds following September 11. AIG Aviation, Inc.,
Global Aerospace (formerly AAU) and USAIG provide this coverage in
the amount of $50 million of primary coverage and up to $250
million dollars of excess coverage (through reinsurance). The cost
since September 11 has significantly increased because the market
did not price (known) terrorist threats before September 11. For
more information, see
War Risk Insurance Update, June 2002, by Stuart C. Hope
(available to NBAA members only).
Comment: We
can each argue about the extent of the security and insurance risks
we face. We can resist efforts to mitigate risks due to the
increased cost of the protection. We may even feel the urge to think
that terrorism won't affect us and requires no action on our part.
Regardless of your views, as these stories suggest, the risk of
terrorism is anything but a non-issue. The business market has not
reached any unified approach to the threat of terrorism, and the
risks have not even been fully defined. You should, therefore,
resist the urge to become complacent because of the relative calm
since 9-11 and consider terrorism and war risk insurance in all
aspects of your business operations.
Feel free to call me at (214) 758-1545 to discuss changes that I
recommend for financing transactions and business operations,
including appropriate insurance programs.
[Top]
5. BLN
Briefs: Updates and Short Takes on Issues of the Moment
Business Aircraft
Activity Expands and Contracts. Citation Shares reported that it
more than doubled its business over the last year
(news). By contrast, Bombardier Aerospace, Inc. dropped its
forecast by 21 percent to reflect "persistent weakness in the U.S.
economy" and a "one-time charge to write down the value of used
business aircraft." See: Bombardier Trims Outlook, Cites Market
Woes, The Wall Street Journal (S.W. Ed.), August 26,
2002; Section A:4 (Col. 1).
*Prediction:
Inventory levels
of business aircraft remain high. More deals for lessors and lenders
will flow from fractional share programs than acquisitions of new
whole aircraft for at least twelve months. See: For Sale: Used
Jet, Low Miles, Nice Interior, The Wall Street Journal
(S.W. Ed.), September 5, 2002; Section D:1 (Col. 2).
New Corporate Law Requires Disclosure of Off-Balance Sheet
Deals. Starting January 26, 2003, public companies will be
required to report "material off-balance sheet" transactions. See
Item 1 in the August BLN in the story:
"New Corporate Law and Order: Will Lessors and Lenders Benefit?"
*Tip:The
Sarbanes-Oxley Act of 2002 (Act) also hooks foreign issuers of
securities in the U.S. market although some exemptions may become
available. See: Europe's CEOs Bite Sarbanes Bullet, The
Wall Street Journal (S.W. Ed.), August 26, 2002; Section A:4
(Col. 1).
SEC Faces Uphill Effort to Attract Audit Board Members.
The Act created an oversight board. Although 200 nominations for
board members have been made, the SEC has encountered a more
difficult task than expected to select candidates who are qualified
and willing to serve. See: SEC Struggles To Fill Positions On
Audit Board, The Wall Street Journal (S.W. Ed.), August
22, 2002; Section C:1 (Col. 5).
*Comment: Watch Harvey Pitt,
the SEC Chairman, as the search goes on. He needs a strong board to
help him regain his stature.
Private-Equity Firms Look for Cheap Deals in Power Business.
Independent and utility power developers have run low on cash, and
look to sell pipelines and power plants to stabilize their
businesses. Private-equity firms such as Texas Pacific Group, the
Blackstone Group and Apollo Advisors LP have come calling to
purchase energy assets for cheap.
*Deal Opportunity: When the
price is right, lessors and lenders may play a role with the equity
guys. But few deals have reached closing so far. See:
Private-Equity Firms Court Energy Industry, The Wall Street
Journal (S.W. Ed.), August 22, 2002; Section C:1 (Col. 5).
[Top]
6. Leasing
101: An Explanation of the "Federal Discount Rate" and the "Federal
Funds Rate"
As briefly described below, the Federal Discount Rate and the
Federal Funds Rate affect deal pricing and our economy.
The "Federal Discount
Rate" means the interest rate at which eligible institutions may
borrow funds directly from the Federal Reserve Bank. This rate is
set every 14 days. Banks restore reserves from these borrowed funds
as the borrowing source of last resort. The Federal Reserve uses
these funds to influence inflation and overall interest rates by
increasing or reducing the amount of money in the federal reserve
system. In general, the more money available, the more likely
inflation may occur. By contrast, the less the money supply, the
greater the borrowing costs and the less inflation we should
experience.
The "Federal Funds Rate" is the interest rate at which banks and
other depository institutions lend money to each other, usually on
an over-night basis. Banks hold a certain percentage of their
customer deposits to satisfy reserve requirements. They try to lend
other amounts without going under these required reserve levels.
Like the Federal Discount Rate, the federal funds rate is used to
control the supply of available funds. These controls, in turn, help
keep inflation down (with higher rates) or allow more funds in the
federal reserve system (with lower rates).
For more information on interest rates including LIBOR and the
Prime Rate, visit
Rate Watch.
[Top]
7. Events and
Speeches; Training Offered
I will be delivering
several speeches and moderating panels this Fall and invite you to
join me for any or all of them.
Leading the Way Through Change: Developing New Approaches to
Off-Balance Sheet Leasing in the Post-Enron Era. Sponsor: The
Equipment Leasing Association. Event:
41st Annual
Convention of the ELA. Dates and Times: Monday, October 14, 2002
at 2:00 p.m. - 3:25 and 3:35 p.m. - 5:00 p.m. at the San Francisco
Marriott Hotel, San Francisco, California.
Global Cross-Border Transactions Leadership. Sponsor: The
Equipment Leasing Association. Event:
41st Annual
Convention of the ELA. Dates and Times: Tuesday, October 15,
2002 at 3:35 p.m.- 5:00 p.m. at the San Francisco Marriott Hotel,
San Francisco, California. I will be discussing how to use EXIM,
OPIC and other government resources to enhance capital investment
and leasing internationally.
Structuring and Pricing Transactions in the Current Market.
Sponsor: Institute of International Research. Event: Conference on
Synthetic Lease Structures and Credit Tenant Leasing Forum. Dates
and Times: Tuesday, October 29, 2002 at 9:15 a.m. -10:00 a.m. in New
York City. For information/registration, contact
IIR USA or call (888) 666-8514
or (646) 336-7030.
How the New (Accounting) Rules Will Affect Lease Financing
Transactions. Sponsor: Infocast. Event: Unwinding,
Restructuring & Consolidating Special Purpose Entities Under the New
FASB Guidelines. Dates and Times: Thursday, November 21, 2002 at
3:30 p.m. - 4:15 p.m. in New York City (location to be announced).
For information/registration, contact
Infocast or call (818)
888-4444.
Training Offered. To help you improve your business and
cope with change involving such topics as synthetic leasing, I offer
private training seminars at your designated location
tailored to your specific needs. My interactive and informative
approach relies, in part, on my book,
Business Leasing for Dummies (BLFD) ®. We can customize a format
for your training needs ranging from a three-hour course to a
two-day course. As a cost savings, we can offer these courses or
even lunch specials for one hour by video teleconferencing at a
fixed cost.
*Warning: Many of you have
indicated your interest in training. Other have pulled back on
training due to budget constraints. Training makes your staff more
cost-effective and productive, which increases profits and/or
reduces your costs. Don't neglect training in these times of change.
Call me at (214) 758-1545 or e-mail me at
dmayer@pattonboggs.com
to discuss your needs or interests. By training now, you can profit
as the economy recovers!
[Top]
8. Web Sites
and Other Good Stuff
Here are some
informative and useful web sites for business and personal use:
Big Site for General Business Topics. For information
about all kinds of business topics, see a partner site of the
venerable Financial Times. Visit
http://www.business.com for
topics from Financial Services and Healthcare to Industries Goods &
Services and Telecommunications. You can use this kind of
information to write proposals, research business opportunities and
learn some basics in business.
The Latest Bankruptcy News of Our Day. Bankruptcies these
days have impacted many of us personally and in our businesses.
Check out
http://www.BankruptcyData.com for the daily news on bankruptcy
developments, including information on thousands of business
bankruptcy filings from federal bankruptcy districts. This site
touts itself as the premier business bankruptcy resource on the web.
Do You Know How to Cope with Identity Theft? Last year
some 700,000 people had their identities stolen. On average, a
victim spends 175 hours restoring his or her name with credit
bureaus and others. See: How to Strike Back At Identity Theft,
The Wall Street Journal (S.W. Ed.), August 21, 2002;
Section D:1 (Col. 4). For some preventive action to foil the thief,
resources and information to cope with theft, visit the non-profit
site of
http://www.privacyrights.org/identity.htm. Other sites provide
assistance for fees of between $8 and $100 for specific or monthly
services, such as monitoring credit reports, sending fraud alerts
and providing identity theft assistance if this crime affects you.
For more help visit:
http://www.promiseplans.com or
http://www.truecredit.com.
[Top]
A Message From the Publisher,
David G. Mayer
As the founder and
publisher of Business Leasing News (BLN), I am pleased to
announce that BLN's website has been rated by Alexa.com as one of
the most visited leasing web sites in the world! These ratings
spur us on to improve BLN for you.
You may have noticed that Item 5 in this issue is new to
Business Leasing News. As you can see, the section is called "BLN
Briefs: Updates and Short Takes on Issues of the Moment." The title
to the section describes what I am trying to accomplish. In two or
three sentences, I cover more new legal and business developments
affecting your business, update previous BLN stories, and offer you
some strategic viewpoints by way of Tips, Predictions, etc. Feel
free to call about any of these short takes because I generally will
have more information available than I can use to cover the point.
Please let me know if you like this section or prefer the longer,
more thorough stories, instead. E-mail me to let me know if you
would like to see BLN Briefs monthly or periodically as necessary to
cover more important issues.
I have also reduced the story items in BLN to 8 items plus this
message. This change shortens BLN so that you can spend less time
reading BLN, yet gain the value of various stories and information.
You may even want to click on more links because you have less text
to read. I select the links to expand and enhance the information I
provide to you. Some readers archive BLN to refer to the links.
Check them out!
As you may be aware, I spend a substantial part of my legal
practice in business transactions that include buying, selling,
financing and leasing property of all kinds. This property includes
aircraft, energy, facility and technology assets.
Patton Boggs also
negotiates fractional ownership of business aircraft, closes vendor
programs and underlying transactions, handles tax-exempt and federal
leasing deals, completes portfolio acquisitions, assists in
syndications of all sizes, and much more. We also spend a
substantial amount of time working out troubled deals.
Thanks again for reading BLN and for your feedback.
One BLN reader wrote recently: "I want
to thank you so much for …(providing) me with Business Leasing News.
It is just fabulous and so… timely. I was just discussing the 95K
rule today and you made it very clear and concise (in your August
issue)." Another BLN reader wrote:
"Just found your newsletter through Kit Menkin's leasing news today.
I find your newsletter very informative and will recommend my
seminar attendees to read it and go through your site." Keep the
comments and suggestions coming!
I extend a special thank you to my editors at Patton Boggs LLP
for their comments on this edition: Adrian Nicole McCoy, Julie
Rivard, Steve Reagan and Tom Stumpf. I would like to also thank the
technical team at Patton Boggs LLP for their many contributions to
BLN: George Barber and Winston Jackson.
Please forward this e-mail to other people whom you know.
You may, for this
purpose, disregard the Patton Boggs distribution restriction that
appears at the bottom of this email.
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