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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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