Xerox Corporation announced yesterday that it had received loans from GE Capital and signed new agreements with lenders outside of the US. This follows the company’s announcement in October 2000 that it would transfer the financing on the equipment it leases to third parties as part of its restructure to reduce debt.
A third round of financing has been received from GE Capital, with the latest $266 million received bringing the total amount loaned to the company from GE to $1.47 billion in the US. Xerox also said it had received $291 million in financing from GE Capital to cover lease receivables in Canada, following its announcement in November that GE Capital would provide it with $800 million in return for leases in Canada and the UK.
In Italy, Xerox has signed a preliminary agreement with an unnamed financial institution to transfer its existing lease portfolio. The company needs regulatory approval for the arrangement and expects to complete it in April.
With the recent funding from GE Capital, Xerox says its cash balance has increased to around $4.8 billion from $4.5 billion at the end of January.
28-Mar-2002
