<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report: May 26, 1998
------------
(Date of earliest event reported)
HELLER FUNDING CORPORATION
---------------------------
HELLER EQUIPMENT ASSET RECEIVABLES TRUST 1997-1
-----------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware
--------
(State or other jurisdiction of incorporation)
333-30207 36-4165546
--------- ----------
(Commission File Number) (IRS Employer Identification Number)
500 West Monroe Street, Chicago, Illinois 60661
- ----------------------------------------- -----
(Address of principal executive offices) (Zip Code)
(312) 441-7246
--------------
(Registrant's telephone number, including area code)
<PAGE>
Item 5. Other Events
- ------- ------------
Attached, for the Distribution Date of May 26, 1998, is the Monthly Report,
filed as Exhibit 99.
Item 7. Financial Statements and Exhibits
- ------- ---------------------------------
(c) Exhibits
99 Heller Funding Corporation - Monthly Report for the Distribution Date of
May 26, 1998.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
Dated: June 9, 1998
------------
HELLER FUNDING CORPORATION
By: /s/ Julia S. Landes
----------------------------------
Julia S. Landes
Title: Vice President
<PAGE>
EXHIBIT INDEX
Exhibit
Number Document Description
- ------ --------------------
99 Heller Funding Corporation - Monthly Report for the Distribution Date
of May 26, 1998.
<PAGE>
EXHIBIT 99
Heller Equipment Asset Receivables Trust 1997-1
- --------------------------------------------------------------------------------
Heller Financial Inc.- Servicer
Monthly Report - Restricting Events
5/26/98
Restricting Events
<TABLE>
<S> <C>
A) Average Cumulative Net Loss Ratio
(a) The Average Cumulative Net Loss Ratio exceeds 1.0% (yes/no) no
Initial ADCB 273,826,503.00
</TABLE>
<TABLE>
<CAPTION>
ADCB of
Cumulative
ADCB of Defaulted
Cumulative Contracts Cumulative
Defaulted Cumulative net of Net Loss
Contracts Recoveries Recoveries Ratio
------------ ---------- ---------- --------------
<S> <C> <C> <C> <C>
2 months prior 662,179.25 272,007.15 390,172.10 0.14%
1 month prior 1,058,063.90 314,604.74 743,459.16 0.27%
Current 1,097,554.12 314,604.74 782,949.38 0.29%
---------- ---------- -----
Average 939,265.76 300,405.54 638,860.21 0.23%
Annualized maximum Cumulative Net Loss Ratio 1.00%
Average Cumulative Net Loss Ratio 0.23%
</TABLE>
Cumulative Net Loss Ratio means, for any date of determination,
the fraction (expressed as a percentage) determined by
dividing (i) the ADCB of all Contracts in the Trust which have
become Defaulted Contracts since the Initial Cutoff Date, net
of aggregate Recoveries received by the Trust during such same
period, by (ii) the ADCB of all Contracts in the Contract Pool
as of the Initial Cutoff Date.
<TABLE>
<S> <C>
B) A Servicer Event has occurred and is continuing (yes/no) no
C) An Event of Default has occurred and is continuing (yes/no) no
(a) failure pay on each Distribution Date the full
amount of interest on any Note (yes/no) no
(b) failure to pay the then outstanding principal amount
of any Note, if any, on its related Maturity Date (yes/no) no
Based on A, B and C, a Restricting Event has occurred and is continuing (yes/no) no
</TABLE>
<PAGE>
Heller Equipment Asset Receivables Trust 1997-1
- --------------------------------------------------------------------------------
Heller Financial Inc.- Servicer
Monthly Report - Limitations
5/26/98
<TABLE>
<CAPTION>
Obligor Event Trigger Determination
- -----------------------------------
<S>
The current period is less than 16 months after the Closing Date (January <C>
4, 1999) (yes / n/a) Yes
If the current period is less than 16 months after the closing date, one of
the top five Obligors, as of the no Cut-Off Date, is a Defaulted Contract
in this period (yes / no / n/a) no
The Obligor Event has been cured (yes, if any of following is yes / no, if
each of following is no / n/a if not applicable) n/a
a) the Defaulted Contract has been replaced with an eligible Substitute
Contract n/a
b) a Recovery has been received with respect to the Defaulted Contract
and no further Recoveries are expected n/a
c) a Successor Servicer has been appointed n/a
An Obligor Event has occurred and is continuing n/a
10% Substitution Limit Calculation
- ----------------------------------
ADCB as of the Cut-off Date: 273,826,503.00
Cumulative DCB of Substitute Contracts replacing Defaulted Contracts and
Adjusted Contracts 0.00
Percentage of Substiture Contracts replacing Defaulted Contracts and
Adjusted Contracts 0.00%
Percentage of Substitute Contracts replacing Defaulted Contracts and
Adjusted Contracts exceeds 10% (yes/no) no
5% Skipped Payment Limit Calculation
- ------------------------------------
The percent of contracts with Skipped Payment modifications 0.00%
The DCB exceeds 5% of the initial ADCB (yes/no) no
Any Skipped Payments have been deferred later than 12 months prior to the
Class B Maturity Date n/a
Concentration Amounts (only applicable at the Cutoff Date or in the event of a
- --------------------------------------------------------------------------------
substitution)
- -------------
(i) The ADCB of all End-User Contracts with Obligors that are
governmental entities or municipalities exceeds 1.13% of the 0.00%
ADCB of the Contract Pool no
(ii) The ADCB of all End-User Contracts which finance, lease or are
related to Software exceeds 3.88% of the ADCB of the Contract 2.03%
Pool no
(iii) The ADCB of all End-User Contracts with Obligors who comprise
the three largest Obligors (measured by ADCB as of the date of 4.32%
determination) exceeds 5.09% of the ADCB of the Contract Pool no
(iv) The ADCB of all End-User Contracts with Obligors who comprise
the 20 largest Obligors (measured by ADCB as of the date of 19.38%
determination) exceeds 24.79% of the ADCB of the Contract Pool no
(v) The ADCB of the End-User Contracts related to a single Vendor,
or representing a Vendor Loan of such Vendor or affiliate 18.17%
thereof exceeds 23.01% of the ADCB of the Contract Pool no
(vi) The ADCB of all End-User Contracts with Obligors thereof located
in a single State of the United States exceeds 17.73% of the 13.31%
ADCB of the Contract Pool no
</TABLE>
<PAGE>
Heller Equipment Asset Receivables Trust 1997-1
- --------------------------------------------------------------------------------
Heller Financial Inc.-Servicer
Monthly Report-Accounts
5/26/98
<TABLE>
<CAPTION>
Collection Reserve
Account Fund
------------ ------------
<S> <C> <C>
Beginning Account Balance 0.00 2,738,265.00
Investment Earnings 68,900.82 14,403.02
Collection Account
- ------------------
Scheduled Payments, net of Excluded Amounts and
less Servicer Advances plus Payaheads 7,356,209.41
Add: Prepayment Amounts 1,371,036.88
Add: Recoveries 0.00
Add: Investment Earnings 68,900.82 14,403.02
Add: Late Charges 7,837.19
Add: Expired Lease Proceeds 0.00
Add: Servicer Advances 220,819.08
Available Amounts 9,024,803.38 2,752,668.02
- -----------------
Payments on Distribution Date
- ------------------------------
(A) Indenture Trustee Fees (first in funds allocation
during a Restricting Event or an Event of Default) 0.00
(A) Unreimbursed Servicer Advances 0.00
(B) Monthly Servicing Fee, due and accrued, including any
amounts unpaid 78,434.38
(C) Class A-1 Notes interest, due and accrued, including any
amounts unpaid 0.00
(D) Class A-2 Notes interest, due and accrued, including any
amounts unpaid 911,264.94
(E) Class B Notes interest, due and accrued, including any
amounts unpaid 39,726.51
(F) Class C Notes interest, due and accrued, including any
amounts unpaid 27,217.75
(G) Class D Notes interest, due and accrued, including any
amounts unpaid 33,906.33
(H) The Class A-1 Principal Payment Amount 0.00
(I) The Class A-2 Principal Payment Amount 7,176,269.38
(J) The Class B Principal Payment Amount 307,554.40
(K) The Class C Principal Payment Amount 205,036.26
(L) The Class D Principal Payment Amount 245,393.43
(M) Amounts required to meet the Reserve Fund Amount 0.00 0.00
(B)* Monthly Servicing Fee, due and accrued, including any
amounts unpaid 0.00
(applicable only if an Obligor Event has occurred and is
continuing)
(N) Any excess to Certificateholders 0.00
Distributions to Noteholders and Certificateholders 9,024,803.38 14,403.02
Ending balance of accounts 0.00 2,738,265.00
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Heller Equipment Asset Receivables Trust 1997-1
============================================================================================================
Heller Financial Inc. - Servicer
Monthly Report - Schedules
<S> <C> <C> <C>
5/26/98
A Restricting Event has occurred and is continuing (yes/no) no
Trustee Fees (only in the event of a Restricting Event or an Event of
Default) 0.00
Unreimbursed Servicer Advances
- ------------------------------
(i) Current month Unreimbursed Servicer Advances 0.00
(ii) Prior unpaid Unreimbursed Servicer Advances (or arrearage) 0.00
(iii) Total Unreimbursed Servicer Advances due ( (i) + (ii) ) 0.00
(iv) Unreimbursed Servicer Advances distributed 0.00
Unpaid Unreimbursed Servicer Advances (or arrearage) 0.00
Servicing Fee Schedule
- ----------------------
(i) Servicing Fee Percentage 0.50%
(ii) ADCB of Contract Pool as of the 1st day of the Collection Period 188,242,521.67
(iii) Servicing Fee ( ( (i) / 12 ) x (ii) ) 78,434.38
(iv) Servicing Fee accrued but not paid in prior periods 0.00
(v) Total Servicing Fee due, and accrued but not paid in prior periods
( (iii) + (iv) ) 78,434.38
(vi) Monthly Servicing Fee distributed 78,434.38
Servicing Fee accrued but not paid 0.00
Class A-1 Interest Schedule
- ---------------------------
Opening Class A-1 principal balance 0.00
(i) Class A-1 Interest Rate 5.7325%
(ii) Number of days in Accrual Period 0
Monthly Class A-1 Interest Rate ( (i) x ( (ii)/360) ) 0.0000%
Current Class A-1 interest due 0.00
Prior Class A-1 interest arrearage 0.00
Current Period Interest Shortfall 0.00
Class A-1 interest distribution 0.00
Class A-2 Interest Schedule
- ---------------------------
Opening Class A-2 principal balance 171,129,565.32
Class A-2 Interest Rate 6.3900%
Class A-2 Interest Rate x 30/360 0.5325%
Current Class A-2 interest due 911,264.94
Prior Class A-2 interest arrearage 0.00
Period Interest Shortfall
Class A-2 interest distribution 911,264.94
Class B Interest Schedule
- -------------------------
Opening Class B principal balance 7,334,124.15
Class B Interest Rate 6.5000%
Class B Interest Rate x 30/360 0.5417%
Current Class B interest due 39,726.51
Prior Class B interest arrearage 0.00
Current Period Interest Shortfall 0.00
Class B interest distribution 39,726.51
</TABLE>
<PAGE>
Heller Equipment Asset Receivables Trust 1997-1
- --------------------------------------------------------------------------------
Heller Financial Inc.- Servicer
Monthly Report - Schedules Continued
5/26/98
Class C Interest Schedule
Opening Class C principal balance 4,889,416.10
Class C Interest Rate 6.6800%
Class C Interest Rate x 30/360 0.5567%
Current Class C interest due 27,217.75
Prior Class C interest arrearage 0.00
Current Period Interest Shortfall 0.00
Class C interest distribution 27,217.75
Class D Interest Schedule
Opening Class D principal balance 5,332,580.63
Class D Interest Rate 7.6300%
Class D Interest Rate x 30/360 0.6358%
Current Class D interest due 33,906.33
Prior Class D interest arrearage 0.00
Current Period Interest Shortfall 0.00
Class D interest distribution 33,906.33
Class A-1 Principal Schedule
Class A-1 Maturity Date 09/25/98
(i) Opening Class A-1 principal balance 0.00
(ii) ADCB as of last day of second preceding
Collection Period 188,242,521.67
(iii) ADCB as of last day of immediately
preceding Collection Period 180,348,625.36
Expected Class A-1 Payment ((ii) - (iii) ) 7,893,896.31
(iv) Aggregate Expected Class A-1 Payments not
paid on preceding Distribution Date 0.00
Class A-1 Principal Payment Amount
(lesser of (i) or ((ii) -(iii)) + (iv)) 0.00
Class A-1 Principal Payment Amount distribution 0.00
Shortfall 0.00
Class A-1 Principal Balance after current distribution 0.00
Class A-2 Principal Schedule
(i) Opening Class A-2 principal balance 171,129,565.32
(ii) Applicable Class A-2 Percentage 90.91%
(iii) ADCB as of the last day of the Collection
Period less obligations to Class A-1 Notes 180,348,625.36
(iv) Current month targeted Class A-2
principal balance ((ii) * (iii)) 163,953,295.94
(v) (i) - (iv) (zero until Class A-1 has been retired) 7,176,269.38
(vi) Class A-2 Principal Payment Amount
(lesser of (i) or (v) ) 7,176,269.38
Class A-2 Principal Payment Amount distributed 7,176,269.38
Shortfall 0.00
Class A-2 principal balance after current distribution 163,953,295.94
Class B Principal Schedule
(i) Opening Class B principal balance 7,334,124.15
(ii) Applicable Class B Percentage 3.90%
(iii) ADCB as of the last day of the Collection
Period less obligations to Class A-1 Notes 180,348,625.36
(iv) Current month targeted Class B
principal balance ((ii) * (iii)) 7,026,569.75
(v) (i) - (iv) (zero until Class A-1 has been retired) 307,554.40
(vi) Class B Principal Payment Amount
(lesser of (i) or (v)) 307,554.40
Class B Principal Payment Amount distributed 307,554.40
Shortfall 0.00
Class B principal balance after current distribution 7,026,569.75
<PAGE>
Heller Equipment Asset Receivables Trust 1997-1
- --------------------------------------------------------------------------------
Heller Financial Inc.- Servicer
Monthly Report - Schedules Continued
5/26/98
<TABLE>
<CAPTION>
Class C Principal Schedule
- --------------------------
<S> <C> <C>
(i) Opening Class C principal balance 4,889,416.10
(ii) Applicable Class C Percentage 2.60%
(iii) ADCB as of the last day of the Collection Period less obligations
to Class A-1 Notes 180,348,625.36
(iv) Current month targeted Class C principal balance ( (ii) * (iii) ) 4,684,379.84
(v) (i) - (iv) (zero until Class A-1 has been retired) 205,036.26
(vi) Class C Principal Payment Amount (lesser of (i) or (v) ) 205,036.26
Class C Principal Payment Amount distributed 205,036.26
Shortfall 0.00
Class C principal balance after current distribution 4,684,379.84
Class D Principal Schedule
- --------------------------
(i) Opening Class D principal balance 5,332,580.63
(ii) Applicable Class D Percentage 2.60%
(iii) ADCB as of the last day of the Collection Period less obligations
to Class A-1 Notes 180,348,625.36
(iv) Current month targeted Class D principal balance ( (ii) * (iii) ) 4,684,379.84
(v) (i) - (iv) (zero until Class A-1 has been retired) 648,200.79
(vi) Class D Principal Payment Amount (lesser of (i) or (v) ) 648,200.79
Class D Principal Payment Amount distributed 245,393.43
Shortfall 402,807.36
Class D principal balance after current distribution 5,087,187.20
Reserve Fund Schedule
- ---------------------
Prior month Reserve Fund balance 2,738,265.00
Initial ADCB 273,826,503.00
Required Reserve Fund Amount (lesser of (i) initial ADCB * 1.00% or 2,738,265.00
(ii) outstanding principal of the Notes)
Current period draw on Reserve Fund 0.00
Required deposit to Reserve Fund 0.00
Actual deposit to Reserve Fund 0.00
Interest Earned on Reserve Account 14,403.02
Deposit to Certificateholder 14,403.02
Ending Reserve Fund balance 2,738,265.00
Ending Reserve Fund balance as a percentage of ADCB 1.52%
Servicing Fee Schedule
- ----------------------
Servicing Fee during an Obligor Event 0.00
Servicing Fee paid 0.00
</TABLE>
<PAGE>
Heller Equipment Asset Receivables Trust 1997-1
- --------------------------------------------------------------------------------
Heller Financial Inc.- Servicer
Monthly Report - Note Factors
5/26/98
<TABLE>
<S> <C>
CUSIP # 423327AA3
Class A-1
---------
Class A-1 principal balance 0.00
Initial Class A-1 principal balance 62,980,096.00
Note factor 0.000000000
CUSIP # 423327AB1
Class A-2
---------
Class A-2 principal balance 163,953,295.94
Initial Class A-2 principal balance 191,678,552.00
Note factor 0.855355460
CUSIP # 423327AC9
Class B
-------
Class B principal balance 7,026,569.75
Initial Class B principal balance 8,214,795.00
Note factor 0.855355459
CUSIP # 423327AD7
Class C
-------
Class C principal balance 4,684,379.84
Initial Class C principal balance 5,476,530.00
Note factor 0.855355460
Class D
---------------
Class D principal balance 5,087,187.20
Initial Class D principal balance 5,476,530.00
Note factor 0.928907027
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Heller Equipment Asset Receivables Trust 1997-1
- -----------------------------------------------------------------------------------------------------------------------
Heller Financial Inc. - Servicer
Monthly Report - Pool Data
5/26/98
ADCB as of the last day of the Collection Period 180,348,625.36
<S> <C>
Loss and Delinquency Data for Period
- ------------------------------------
DCB of Defaulted Contracts as of the last day of the Collection Period 39,490.22
Number of Defaulted Contracts as of the last day of the Collection Period 1
Defaulted Contracts as a percentage of ADCB (annualized) 0.26%
DCB of Adjusted Contracts as of the last day of the Collection Period 0.00
Number of Adjusted Contracts as of the last day of the Collection Period 0
DCB of Prepaid Contracts as of the last day of the Collection Period 1,202,636.66
Number of Prepaid Contracts as of the last day of Collection Period 10
DCB of Substitute Contracts, excluding Warranty Contracts, added to Trust during Collection Period 0.00
Number of Substitute Contracts, excluding Warranty Contracts, added to Trust during Collection Period 0
DCB of Warranty Contracts as of the last day of the Collection Period 0.00
Number of Warranty Contracts as of the last day of the Collection Period 0
DCB of repurchased Contracts as of the last day of the Collection Period 0.00
Number of repurchased Contracts as of the Collection Period 0
DCB of Additional Contracts as of the last day of the Collection Period 0.00
Number of Additional Contracts as of the Collection Period 0
Recoveries collected relating to Defaulted Contracts as of the last day of the Collection Period 0.00
Delinquencies Dollars Percent
-------------- ---------
Current 176,743,668.41 97.41%
31-60 days past due 2,851,463.05 1.57%
61-90 days past due 1,453,633.38 0.80%
Over 90 past due 392,386.62 0.22%
-------------- ------
Total 181,441,151.46 100.00%
31+ days past due 4,697,483.05 2.59%
(i) DCB of cumulative Defaulted Contracts (cumulative gross losses to date) 1,097,554.12
(ii) Cumulative Recoveries realized on Defaulted Contracts 314,604.74
Cumulative net losses to date ( (i) - (ii) ) 782,949.38
</TABLE>
-----------------------------------------------------------
Static Information
Initial ADCB 273,826,503
Discount Rate 6.9239%
Class A-1 Initial Principal Amount 62,980,096
Class A-1 Interest Rate 5.7325%
Class A-2 Initial Principal Amount 191,678,552
Class A-2 Interest Rate 6.3900%
Class B Initial Principal Amount 8,214,795
Class B Interest Rate 6.5000%
Class C Initial Principal Amount 5,476,530
Class C Interest Rate 6.6800%
Class D Initial Principal Amount 5,476,530
Class D Interest Rate 7.6300%
Reserve Fund Initial Deposit 2,738,265
Class A-1 Maturity Date 09/25/98
Classes A-2, B, C, & D Maturity Date 05/25/05
Closing Date 09/04/97
-----------------------------------------------------------
