The Register® — Biting the hand that feeds IT

Xerox mortgages leases for $435m

Debt relief

Tune into our application security webcast, click here

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'

See what The Register's experts have to say on application security

Don’t Miss

Win a Samsung C6625!

Reg Lucky Draw Windows Mobile handsets up for grabs

Palm_Pre_001_SMIs your cameraphone an oxymoron?

Pic Review iPhone 3G v iPhone 3GS v Palm Pre

Reg black vulture logoReg Mobile and Wireless newsletter is go! go! go!

Site news Email-tasm

Sign up, sign up for The Register IT security newsletter

Narrowcasting for the email classes