The following story illustrates how GE Capital Asset Services and Trading (ASAT), based in Sydney,
Australia, turned a bankruptcy into a money maker while helping customers of Equipment Financial
Services and GE Plastics.
Here’s how the story unfolded:
- A customer of GE Plastics filed for bankruptcy in Australia.
- Another customer, Jenoa Plastics, wanted to buy the
assets of the bankrupt company: intellectual property,
tooling and 20 percent of the manufacturing equip-ment.
But they had difficulty securing the A$1.8
million financing.
- GE Plastics, a raw material supplier to both the bank-rupt
company and Jenoa, called for help from ASAT,
the part of Equipment Financial Services that pro-vides
equipment management and asset remarketing
services in the Asia-Pacific region.
- ASAT advised Jenoa that ALL the assets of the
bankrupt company, including 100 percent of the
equipment, the plant, tooling and stock could be
purchased for the same A$1.8 million.5. Jenoa successfully negotiated all the assets at
that price.
- ASAT purchased the total assets from the bankruptcy
administrator and sold to Jenoa the assets it originally
wanted for only A$1.5 million. EFS funded Jenoa’s
purchase.
- ASAT auctioned the 80 percent of the equipment
that Jenoa did not want.
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The result: GE Plastics served and delighted a customer,
Jenoa Plastics. Jenoa Plastics saved A$300,000 on its
original purchase offer and has improved its growth
potential with its new assets. EFS booked a A$1.5 million
deal to a new customer and restructured all of its debt.
And ASAT generated net income of A$850,000 on a
A$300,000 investment, in just five weeks.
“It was a remarkable achievement for all involved,” said
John Leftwich, ASAT’s general manager. “Using the
respective skills within the GE organization created a
win for both GE and its customers.”
