Investors Frequently Asked Questions
How should the cost basis
be allocated across the different notes included in the
distributions to bondholders and other Class C4
creditors?
Because
each person’s tax situation is different, Comdisco is
not providing any tax guidance on how to treat the
distributions. Please consult your tax advisor to
determine what is appropriate for your personal
situation.
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How
should the cost basis be calculated for the contingent
distribution rights that were given in exchange for the
old common shares of Comdisco, Inc., which have been
cancelled?
Because
each person’s tax situation is different, Comdisco is
not providing any tax guidance on how to treat the
contingent distribution rights. Please consult your tax
advisor to determine what is appropriate for your
personal situation.
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Where is the Comdisco Holding
Company common stock traded and under what
symbol?
The common stock of Comdisco Holding Company is
traded on the OTC Bulletin Board and The Pink Sheets
under the symbol CDCO.
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How
many shares of Comdisco Holding Company common stock are
outstanding?
As
reported in our 10k for fiscal year ended September 30,
2003, there are 4,197,100 shares outstanding (basic and
diluted) of the common stock of Comdisco Holding
Company.
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What happened to the old
Comdisco common stock?
As outlined in the Plan of Reorganization, the
old common stock of Comdisco, Inc. has been cancelled as
of the Effective Date, which was August 12, 2002, and is
no longer traded.
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Did former common
shareholders of Comdisco, Inc. receive common shares of
Comdisco Holding Company in exchange for their old
common shares?
No. As outlined in the Plan of Reorganization,
the old common stock was cancelled and was not exchanged
for new common stock. Former common shareholders of
Comdisco, Inc. who tendered their stock certificates to
Mellon Investors Services by August 12, 2003, were
eligible to receive contingent distribution rights that
entitle the holder to share in the net proceeds realized
from the runoff or sale of the company’s assets. The
manner of sharing of the net proceeds is described in
the Rights Agent Agreement relating to the Contingent
Distribution Rights, which is available for download on
the home page of the company's website.
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What did the former
common shareholders receive from the company to
represent this potential future
recovery?
As discussed above, Comdisco issued rights to
former shareholders of Comdisco, Inc.. Details of these
rights are fully described in the Rights Agent Agreement
relating to the Contingent Distribution Rights available
for download on the home page of the company’s web site.
Former common shareholders were required to submit their
old common stock certificates to Mellon Investor
Services in exchange for the rights by August 12,
2003.
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Did former common
shareholders receive one right for every share of old
common stock?
Yes. The company issued one right for each share
of old common stock held by former common shareholders
of Comdisco, Inc.
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Who should former common
shareholders contact if they have not received
information on exchanging old shares of Comdisco,
Inc.?
Former shareholders of Comdisco, Inc. who did not
exchange their shares by August 12, 2003, are no longer
eligible to do so.
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When was the deadline for
former common shareholders to exchange their old shares
for rights?
As outlined in the Plan of Reorganization, former
common shareholders of Comdisco, Inc. had until August
12, 2003 to exchange their old common shares for
rights.
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Where are the rights traded
and under what symbol?
The rights are traded on the OTC Bulletin Board
and the Pink Sheets under the symbol CDCOR.
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Where can I go to find out more
information about the rights?
Refer to the Rights Agent Agreement relating to
the Contingent Distribution Rights which is available
for download on the home page of the company’s
website.
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What is the CUSIP number
for the new common stock?
The CUSIP number of the common stock of Comdisco
Holding Company is: 200334 10 0. The ISIN number is
US2003341003. The issue description is: Common
stock.
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What is the CUSIP
number for the rights issued to former common
shareholders?
The CUSIP number of the contingent distribution
rights is: 200334 11 8. The ISIN number is:
US2003341185. The issue description is Contingent
Distribution Right
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I
am a CDR holder and I recently received Forms 1099-B and
1099-INT reporting the distributions that I received on
my CDRs during the year ended December 31, 2003. Why did
I receive Forms 1099-B and1099-INT for my CDR
distributions?
As
discussed more fully in Section IX.C.1.b of the
Disclosure Statement (a copy of which is available for
download on our website), Comdisco has taken the
position that “closed transaction” treatment applies to
the exchange of old Comdisco common stock for CDRs and
that the CDRs constitute rights to payments under a
contract. The Internal Revenue Service is not bound by
this position. You received Forms 1099-B and 1099-INT
because Comdisco believes that a portion of the
distributions you received on your CDRs must be treated
as interest income under section 483 of the Internal
Revenue Code (reportable on Form 1099-INT). Comdisco
believes that the remaining portion should be treated as
a payment under a contract for the sale or exchange of
your old Comdisco common stock (reportable on Form
1099-B). Comdisco reported approximately 97 percent of
the 2003 CDR distributions on Form 1099-B and
approximately 3 percent on Form 1099-INT. All CDR
holders are urged to refer to Section IX.C.1.b of the
Disclosure Statement for further information regarding
the United States federal income tax treatment of the
CDRs and to seek assistance from their own tax
professionals regarding any issues in connection
therewith.
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