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 (Date of Earliest Event Reported) January 23, 1997
GATX CORPORATION
(Exact Name of Registrant as Specified in its Charter)
New York
(State or other jurisdiction of incorporation)
1-2328
(Commission file number)
36-1124040
(I.R.S. employer identification
no.)
500 West Monroe Street, Chicago, Illinois 60661-3676
(Address of principal executive offices)
Registrant's telephone number, including area code (312) 621-6200
<PAGE>
Item 5. Other Events.
GATX Capital Corporation, an indirect wholly owned subsidiary of the
Company, today filed a Current Report on Form 8-K, stating the following:
"The Company [GATX Capital Corporation] recently learned that
on December 18, 1996 General Electric Capital Corporation and a
subsidiary (collectively, "GECC") filed a Complaint in the Superior
Court for the County of San Francisco (Case No. 983351) against
GATX/Airlog Company, a California general partnership ("Airlog") of
which a Company subsidiary is a partner, and the Company, among others.
The Complaint asserts causes of action for breach of contract, fraud,
negligent misrepresentation and trespass to personal property arising
out of the modification of three B747 aircraft from passenger to
freighter configuration. These aircraft are among a group of ten
aircraft affected by the issuance of Airworthiness Directive 96-01-03
(the "AD") by the Federal Aviation Administration (the "FAA") in
January 1996. The effect of the AD is to reduce significantly the
amount of freight the affected aircraft may carry. The Complaint seeks
direct and consequential damages which it alleges may be in excess of
$50 to $75 million, a declaration requiring defendants to promptly
repair the aircraft and punitive damages. To the best of the Company's
knowledge, no Summons has been served on any of the Defendants in this
action.
The three aircraft were modified in 1991 by subcontractors
of Airlog with GECC's knowledge and consent pursuant to contracts
between Airlog and GECC. These aircraft are part of a group of ten
aircraft that are subject to the AD and were modified by subcontractors
of Airlog pursuant to a design approved by the FAA. The three aircraft
were flown for more than four years prior to the issuance of the AD.
The Company previously disclosed that Evergreen International
Airlines, Inc. made a claim on the Company with respect to three other
aircraft of the ten affected by the AD. The Company responded to that
claim by bringing an action for a Declaratory Judgment that neither
Airlog nor the Company has any liability to Evergreen as a result of
the issuance of the AD. The remaining four affected aircraft are owned
by three other entities.
Consistent with its ongoing product support, Airlog continues
to pursue, with the apparent cooperation of the operators of the
aircraft, including GECC and Evergreen, solutions to the FAA's concerns
raised in the AD.
While the results of any litigation are impossible to predict
with certainty, the Company believes that GECC's claims are without
merit and that the Company and Airlog have adequate defenses thereto."
<PAGE>
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned, duly authorized.
GATX Corporation
January 23, 1997 By:
/s/ David M. Edwards
David M. Edwards
Vice President Finance and
Chief Financial Officer
<PAGE>
