The Register® — Biting the hand that feeds IT

Xerox mortgages leases for $435m

Debt relief

Free whitepaper – Dell PowerEdge servers 2009 - Memory

Xerox, the deeply troubled everything-to-do-with-documents firm, has raised a $435m loan from GE Capital, part of the world's most untroubled company, backed by its UK equipment leases. The secured loan is repayable over 18 months and the two companies are talking about GE maybe taking over Xerox's lease financing in Europe.

Xerox says it now has a cash balance of $1.8 billion. Equipment financing is hugely profitable - but it has to be backed by a lot of cash - something Xerox does not have (it's in the red to the tune of $18bn).

By getting out of this financial service (the move was signalled in October when the full extent of the company's financial plight was first revealed), Xerox will remove $11bn of debt from its balance sheet. This will get it out of a pickle today, but it will ensure that it won't get so much jam tomorrow. But at least there maybe a tomorrow. ®

Related stories

Xerox poo poos bankruptcy claims
Debt-ridden Xerox promises 'aggressive turnaround'

Free whitepaper – Blade learning lab and technical community

Don’t Miss

DustbinDirty, dirty PCs: The X-rated picture guide

Ventblockers Horror beyond human imagination

SC09Top 500 supers - rise of the Linux quad-cores

SC09 Jaguar munches Roadrunner

Ubuntu teaser Early adopters bloodied by Ubuntu's Karmic Koala

Smooth Windows upgrade it ain't

Sign up, sign up for The Register IT security newsletter

Narrowcasting for the email classes