UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
------------------
FORM 10-Q
------------------
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
--- SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1998
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
--- SECURITIES EXCHANGE ACT OF 1934
For the transition period from___to___
-----------------
Commission File No. 2-91762
-----------------
POLARIS AIRCRAFT INCOME FUND I
State of Organization: California
IRS Employer Identification No. 94-2938977
201 High Ridge Road, Stamford, Connecticut 06927
Telephone - (203) 357-3776
Indicate by check mark whether the registrant: (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months, and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
--- ---
This document consists of 16 pages.
<PAGE>
POLARIS AIRCRAFT INCOME FUND I
FORM 10-Q - For the Quarterly Period Ended September 30, 1998
INDEX
Part I. Financial Information Page
Item 1. Financial Statements
a) Balance Sheets - September 30, 1998 and
December 31, 1997.......................................... 3
b) Statements of Operations - Three and Nine Months
Ended September 30, 1998 and 1997.......................... 4
c) Statements of Changes in Partners' Capital
(Deficit) - Year Ended December 31, 1997
and Nine Months Ended September 30, 1998................... 5
d) Statements of Cash Flows - Nine Months
Ended September 30, 1998 and 1997.......................... 6
e) Notes to Financial Statements.............................. 7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations......... 10
Part II. Other Information
Item 1. Legal Proceedings..................................... 14
Item 6. Exhibits and Reports on Form 8-K...................... 14
Signature ...................................................... 15
2
<PAGE>
Part 1. Financial Information
-----------------------------
Item 1. Financial Statements
POLARIS AIRCRAFT INCOME FUND I
BALANCE SHEETS
(Unaudited)
September 30, December 31,
1998 1997
---- ----
ASSETS:
CASH AND CASH EQUIVALENTS $5,910,072 $6,466,511
RENT AND OTHER RECEIVABLES, net of
allowance for credit losses of
$30,365 in 1998 and 1997 1,224 --
AIRCRAFT ENGINES, net of accumulated depreciation
of $71,250 in 1998 and $60,000 in 1997 888,750 900,000
---------- ----------
$6,800,046 $7,366,511
========== ==========
LIABILITIES AND PARTNERS' CAPITAL:
PAYABLE TO AFFILIATES $ 30,065 $ 42,286
ACCOUNTS PAYABLE AND ACCRUED
LIABILITIES 437,674 446,822
LESSEE SECURITY DEPOSITS 45,000 95,000
MAINTENANCE RESERVES 1,727,022 1,466,687
---------- ----------
Total Liabilities 2,239,761 2,050,795
---------- ----------
PARTNERS' CAPITAL:
General Partner 249,765 392,302
Limited Partners, 168,729 units
issued and outstanding 4,310,520 4,923,414
---------- ----------
Total Partners' Capital 4,560,285 5,315,716
---------- ----------
$6,800,046 $7,366,511
========== ==========
The accompanying notes are an integral part of these statements.
3
<PAGE>
POLARIS AIRCRAFT INCOME FUND I
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------- -------------
1998 1997 1998 1997
---- ---- ---- ----
REVENUES:
Rent from operating leases $ 90,000 $ 90,000 $ 270,000 $ 270,000
Interest 78,682 85,841 224,119 418,994
Gain on sale of aircraft -- -- -- 1,832,673
Gain on sale of aircraft
inventory 98,145 86,382 162,454 222,602
Lessee settlement and other -- 690,946 231,072 691,726
---------- ---------- ---------- ----------
Total Revenues 266,827 953,169 887,645 3,435,995
---------- ---------- ---------- ----------
EXPENSES:
Depreciation 3,750 3,750 11,250 11,250
Management fees to general
partner 4,500 4,500 13,500 13,500
Provision for credit losses -- 30,365 -- 30,365
Operating -- 49,502 3,514 208,843
Administration and other 26,833 44,629 114,999 129,760
---------- ---------- ---------- ----------
Total Expenses 35,083 132,746 143,263 393,718
---------- ---------- ---------- ----------
NET INCOME $ 231,744 $ 820,423 $ 744,382 $3,042,277
========== ========== ========== ==========
NET INCOME ALLOCATED
TO THE GENERAL PARTNER $ 2,318 $ 619,786 $ 7,444 $ 776,974
========== ========== ========== ==========
NET INCOME ALLOCATED
TO LIMITED PARTNERS $ 229,426 $ 200,637 $ 736,938 $2,265,303
========== ========== ========== ==========
NET INCOME PER LIMITED
PARTNERSHIP UNIT $ 1.36 $ 1.19 $ 4.37 $ 13.43
========== ========== ========== ==========
The accompanying notes are an integral part of these statements.
4
<PAGE>
POLARIS AIRCRAFT INCOME FUND I
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
(Unaudited)
Year Ended December 31, 1997 and
Nine Months Ended September 30, 1998
------------------------------------
General Limited
Partner Partners Total
------- -------- -----
Balance, December 31, 1996 $ (624,341) $ 11,047,769 $ 10,423,428
Net income 1,846,228 1,341,903 3,188,131
Cash distributions to partners (829,585) (7,466,258) (8,295,843)
------------ ------------ ------------
Balance, December 31, 1997 392,302 4,923,414 5,315,716
Net income 7,444 736,938 744,382
Cash distributions to partners (149,981) (1,349,832) (1,499,813)
------------ ------------ ------------
Balance, September 30, 1998 $ 249,765 $ 4,310,520 $ 4,560,285
============ ============ ============
The accompanying notes are an integral part of these statements.
5
<PAGE>
POLARIS AIRCRAFT INCOME FUND I
STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended September 30,
-------------------------------
1998 1997
---- ----
OPERATING ACTIVITIES:
Net income $ 744,382 $ 3,042,277
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation 11,250 11,250
Gain on sale of aircraft inventory (162,454) (222,602)
Gain on sale of aircraft -- (1,832,673)
Changes in operating assets and
liabilities:
Decrease (increase) in rent and other
receivables (1,224) 18,816
Increase (decrease) in payable to
affiliates (12,221) 60,041
Decrease in accounts payable
and accrued liabilities (9,148) (123,255)
Increase in deferred income -- 21,290
Increase (decrease) in lessee security
deposits (50,000) 24,075
Increase in maintenance reserves 260,335 176,815
------------ ------------
Net cash provided by operating
activities 780,920 1,176,034
------------ ------------
INVESTING ACTIVITIES:
Proceeds from sale of aircraft -- 2,620,000
Principal payments on note receivable -- 418,145
Net proceeds from sale of aircraft inventory 162,454 222,602
------------ ------------
Net cash provided by investing
activities 162,454 3,260,747
------------ ------------
FINANCING ACTIVITIES:
Cash distributions to partners (1,499,813) (8,295,843)
------------ ------------
Net cash used in financing activities (1,499,813) (8,295,843)
------------ ------------
CHANGES IN CASH AND CASH
EQUIVALENTS (556,439) (3,859,062)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 6,466,511 10,065,652
------------ ------------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 5,910,072 $ 6,206,590
============ ============
The accompanying notes are an integral part of these statements.
6
<PAGE>
POLARIS AIRCRAFT INCOME FUND I
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. Accounting Principles and Policies
In the opinion of management, the financial statements presented herein include
all adjustments, consisting only of normal recurring items, necessary to
summarize fairly Polaris Aircraft Income Fund I's (the Partnership's) financial
position and results of operations. The financial statements have been prepared
in accordance with the instructions of the Quarterly Report to the Securities
and Exchange Commission (SEC) Form 10-Q and do not include all of the
information and note disclosures required by generally accepted accounting
principles (GAAP). These statements should be read in conjunction with the
financial statements and notes thereto for the years ended December 31, 1997,
1996, and 1995 included in the Partnership's 1997 Annual Report to the SEC on
Form 10-K.
2. Related Parties
Under the Limited Partnership Agreement, the Partnership paid or agreed to pay
the following amounts for the current quarter to the general partner, Polaris
Investment Management Corporation, in connection with services rendered or
payments made on behalf of the Partnership:
Payments for
Three Months Ended Payable at
September 30, 1998 September 30, 1998
------------------ ------------------
Aircraft Management Fees $ 4,500 $ 1,518
Out-of-Pocket Administrative Expense
Reimbursement 43,123 28,547
Out-of-Pocket Operating and
Remarketing Expense Reimbursement 645 --
------- -------
$48,268 $30,065
======= =======
3. Claims Related to Lessee Defaults
Jet Fleet Bankruptcy - As previously reported, in September 1992, Jet Fleet,
former lessee of one of the Partnership's aircraft, defaulted on its obligations
under the lease for the Partnership's aircraft by failing to pay reserve
payments and to maintain required insurance. The Partnership repossessed its
Aircraft on September 28, 1992. Thereafter, Jet Fleet filed for bankruptcy
protection in the United States Bankruptcy Court for the Northern District of
Texas, Dallas Division. On April 13, 1993, the Partnership filed a proof of
claim in the Jet Fleet bankruptcy to recover its damages. The bankrupt estate
was subsequently determined to be insolvent. The bankruptcy proceeding of Jet
Fleet Corporation was closed on August 6, 1997, and the bankruptcy proceeding of
Jet Fleet International Airlines, Inc. was closed on February 10, 1998.
7
<PAGE>
Distributions from the bankrupt estate have not been made to the unsecured
creditors, and the Partnership is not likely to receive any distributions on its
Proof of Claim.
The Partnership had been holding deposits and maintenance reserves pending the
outcome of the Jet Fleet bankruptcy proceedings. Consequently, the Partnership
recognized, during the quarter ended March 31, 1998, revenue of $92,610 that had
been held as deposits and maintenance reserves, which is included in lessee
settlement and other income.
Braniff, Inc. (Braniff) Bankruptcy - As previously reported, in September 1989,
Braniff filed a petition under Chapter 11 of the Federal Bankruptcy Code in the
United States Bankruptcy Court for the Middle District of Florida, Orlando
Division. On September 26, 1990 the Partnership filed a proof of claim to
recover unpaid rent and other damages, and on November 27, 1990, the Partnership
filed a proof of administrative claim to recover damages for detention of
aircraft, non-compliance with court orders and post-petition use of engines as
well as liquidated damages. On July 27, 1992, the Bankruptcy Court approved a
stipulation embodying a settlement among the Partnership, the Braniff creditor
committees and Braniff in which it was agreed that the Partnership would be
allowed an administrative claim in the bankruptcy proceeding of approximately
$2,076,923. As the final disposition of the Partnership's claim in the
Bankruptcy proceedings, the Partnership was permitted by the Bankruptcy Court to
exchange a portion of its unsecured claim for Braniff's right (commonly referred
to as a "Stage 2 Base Level right") under the FAA noise regulations to operate
nine Stage 2 aircraft and has been allowed a net remaining unsecured claim of
$6,923,077 in the proceedings.
Braniff's bankrupt estate has made a payment in the amount of $200,000 in
respect of the unsecured claims of the Partnership and other affiliates of
Polaris Investment Management Corporation. Of this amount, $138,462 was
allocated to the Partnership, based on its pro rata share of the total claims,
and recognized as revenue during the quarter ended March 31, 1998, which is
included in lessee settlement and other income.
4. Sale of Aircraft Inventory to Soundair, Inc.
The Partnership sold its remaining inventory of aircraft parts from the four
disassembled aircraft, to Soundair, Inc. The remaining inventory, with a net
carrying value of $-0-, was sold effective February 1, 1998 for $100,000, less
amounts previously received for sales as of that date. The net purchase price of
$98,145 was paid in September 1998.
5. Partners' Capital
The Partnership Agreement (the Agreement) stipulates different methods by which
revenue, income and loss from operations and gain or loss on the sale of
aircraft are to be allocated to the general partner and the limited partners.
Such allocations are made using income or loss calculated under GAAP for book
purposes, which varies from income or loss calculated for tax purposes.
Cash available for distributions, including the proceeds from the sale of
aircraft, is distributed 10% to the general partner and 90% to the limited
partners.
8
<PAGE>
The different methods of allocating items of income, loss and cash available for
distribution combined with the calculation of items of income and loss for book
and tax purposes result in book basis capital accounts that may vary
significantly from tax basis capital accounts. The ultimate liquidation and
distribution of remaining cash will be based on the tax basis capital accounts
following liquidation, in accordance with the Agreement.
6. Subsequent Event
In November, 1998, the Partnership entered into an agreement to sell one of its
two engines held in inventory for net proceeds of $290,000 to Quantum Aviation
Limited. It is anticipated that the second engine will also be sold to Quantum
during the fourth quarter of 1998. The two engines had a net book value of $-0-
at September 30, 1998.
9
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
At September 30, 1998, Polaris Aircraft Income Fund I (the Partnership) owned
three engines out of its original portfolio of eleven aircraft. The three
engines are leased to Royal Aviation Inc. and Royal Cargo, Inc. (Royal
Aviation).
Remarketing Update
The Partnership sold its remaining inventory of aircraft parts from the four
disassembled aircraft, to Soundair, Inc. The remaining inventory, with a net
carrying value of $-0-, was sold effective February 1, 1998 for $100,000, less
amounts previously received for sales as of that date. The net purchase price of
$98,145 was paid in September 1998.
In November, 1998, the Partnership entered into an agreement to sell one of its
two engines held in inventory for net proceeds of $290,000 to Quantum Aviation
Limited. It is anticipated that the second engine will also be sold to Quantum
during the fourth quarter of 1998. The two engines had a net book value of $-0-
at September 30, 1998.
Partnership Operations
The Partnership recorded net income of $231,744, or $1.36 per limited
partnership unit, for the three months ended September 30, 1998, compared to net
income of $820,423, or $1.19 per limited partnership unit, for the same period
in 1997. The Partnership recorded net income of $744,382, or $4.37 per limited
partnership unit, for the nine months ended September 30, 1998, compared to net
income of $3,042,277 or $13.43 per unit for the same period in 1997.
The decrease in operating results during the three and nine months ended
September 30, 1998, as compared to the same periods in 1997, is primarily the
result of gains on the sale of aircraft and a settlement payment received from
Nations Air in 1997 as discussed below. The variance in net income per limited
partnership unit will differ from the variance of total net income from period
to period due to the methods by which income or loss from operations and gain or
loss on the sale of aircraft are allocated in accordance with the partnership
agreement.
During the first quarter of 1997, the Partnership sold two Boeing 737-200s and
two spare engines formerly leased to Viscount to Solair, Inc. for cash proceeds
of $1,620,000. In addition, the Partnership retained certain maintenance
reserves and deposits received from the former lessee of these aircraft
aggregating approximately $968,000 that had been held by the Partnership to
offset potential future maintenance expenses for these aircraft. As a result,
the Partnership recognized a net gain of $781,504 on the sale of these aircraft
during the first quarter of 1997.
During the second quarter of 1997, the Partnership sold one Boeing 737-200
formerly leased to Viscount and subleased to Nations Air Express, Inc. for
$1,000,000. In addition, the Partnership retained certain maintenance reserves
and deposits received from the former lessee of this aircraft aggregating
approximately $1,081,000 that had been held by the Partnership to offset
potential future maintenance expenses for this aircraft. As a result, the
Partnership recognized a net gain of $1,051,169 on the sale of this aircraft
during the second quarter of 1997. During the three months ended September 30,
1997, the Partnership received a payment of $690,946 as its share of a
settlement payment from Nations Air, before legal expenses.
10
<PAGE>
During the quarter ended September 30, 1997, the Partnership recorded an
allowance for credit losses of $30,365 for the outstanding receivables from
CanAir through August 21, 1997, after applying CanAir's security deposit of
$20,925 towards the outstanding receivables due.
Interest income decreased during the three and nine months ended September 30,
1998, as compared to the same periods in 1997, primarily due to a decrease in
the cash reserves as discussed in the liquidity section.
Operating expenses decreased during the three and nine months ended September
30, 1998, as compared to the same periods in 1997, due to a decrease in legal
expenses during the three months and nine months ended September 30, 1998.
During the nine months ended September 30, 1997, the Partnership recognized
legal expenses of approximately $177,000 related to the Nations Air Express,
Inc. default and the Viscount default and Chapter 11 bankruptcy filing. During
the nine months ended September 30, 1998, the Partnership recognized legal
expenses of only $3,514 related to the Braniff bankruptcy.
Administrative expenses decreased during the three and nine months ended
September 30, 1998, as compared to the same periods in 1997, primarily due to a
decrease in consulting and trustee fees during the three months and nine months
ended September 30, 1998.
Claims Related to Lessee Defaults
Braniff, Inc. (Braniff) Bankruptcy - As more fully discussed in Note 3,
Braniff's bankrupt estate has made a payment in the amount of $200,000 in
respect of the unsecured claims of the Partnership and other affiliates of
Polaris Investment Management Corporation. Of this amount, $138,462 was
allocated to the Partnership, based on its pro rata share of the total claims,
and recognized as revenue during the nine months ended September 30, 1998.
Jet Fleet Bankruptcy - As more fully discussed in Note 3, the bankruptcy
proceeding of Jet Fleet Corporation was closed on August 6, 1997, and the
bankruptcy proceeding of Jet Fleet International Airlines, Inc. was closed on
February 10, 1998. Distributions from the bankrupt estate have not been made to
the unsecured creditors, and the Partnership is not likely to receive any
distributions on its Proof of Claim.
The Partnership had been holding deposits and maintenance reserves pending the
outcome of the Jet Fleet bankruptcy proceedings. Consequently, the Partnership
recognized, during the nine months ended September 30, 1998, revenue of $92,610
that had been held as deposits and maintenance reserves.
Liquidity and Cash Distributions
Liquidity - The Partnership receives maintenance reserve payments from Royal
Aviation that may be reimbursed to the lessee or applied against certain costs
incurred by the Partnership for maintenance work performed on the Partnership's
aircraft or engines, as specified in the leases. Maintenance reserve balances
remaining at the termination of the lease, if any, may be used by the
Partnership to offset future maintenance expenses or recognized as revenue. The
net maintenance reserves balances aggregate $1,727,022 as of September 30, 1998.
The Partnership received payments of approximately $98,000 and $162,000 during
the three months and nine months ended September 30, 1998, respectively,
11
<PAGE>
compared to payments of approximately $86,000 and $223,000 during the three and
nine months ended September 30, 1997, respectively, from the sale of parts from
the four disassembled aircraft. As stated above, the remaining parts were sold
in September 1998.
Polaris Investment Management Corporation, the general partner, has determined
that the Partnership maintain cash reserves as a prudent measure to insure that
the Partnership has available funds in the event that the engines presently on
lease to Royal Aviation require remarketing and for other contingencies,
including expenses of the Partnership. The Partnership's cash reserves will be
monitored and may be revised from time to time as further information becomes
available in the future.
Cash Distributions - There were no cash distributions to limited partners for
the three months ended September 30, 1998. Cash distributions to limited
partners for the three months ended September 30, 1997 were $6,116,427, or
$36.25 per limited partnership unit. Cash distributions were $1,349,832, or
$8.00 per limited partnership unit and $7,466,258, or $44.25 per unit, for the
nine months ended September 30, 1998 and 1997, respectively. The timing and
amount of future cash distributions to partners are not yet known and will
depend upon the Partnership's future cash requirements, including the receipt of
rental payments from Royal Aviation.
Impact of the Year 2000 Issue
The inability of business processes to continue to function correctly after the
beginning of the Year 2000 could have serious adverse effects on companies and
entities throughout the world. As discussed in prior filings with the Securities
and Exchange Commission, the General Partner has engaged GE Capital Aviation
Services, Inc. ("GECAS") to provide certain management services to the
Partnership. Both the General Partner and GECAS are wholly-owned subsidiaries
(either direct or indirect) of General Electric Capital Corporation ("GECC").
All of the Partnership's operational functions are handled either by the General
Partner and GECAS or by third parties (as discussed in the following
paragraphs), and the Partnership has no information systems of its own.
GECC and GECAS have undertaken a global effort to identify and mitigate Year
2000 issues in their information systems, products and services, facilities and
suppliers as well as to assess the extent to which Year 2000 issues will impact
their customers. Each business has a Year 2000 leader who oversees a
multi-functional remediation project team responsible for applying a Six Sigma
quality approach in four phases: (1) define/measure -- identify and inventory
possible sources of Year 2000 issues; (2) analyze -- determine the nature and
extent of Year 2000 issues and develop project plans to address those issues;
(3) improve -- execute project plans and perform a majority of the testing; and
(4) control -- complete testing, continue monitoring readiness and complete
necessary contingency plans. The progress of this program is monitored at each
business, and company-wide reviews with senior management are conducted monthly.
GECC and GECAS management plan to have completed the first three phases of the
program for a substantial majority of mission-critical systems by the end of
1998 and to have nearly all significant information systems, products and
services, facilities and suppliers in the control phase of the program by
mid-1999.
As noted elsewhere, the Partnership has sold all of its aircraft-related assets
other than three aircraft engines. These remaining engines are on lease with
Royal Aviation, Inc. and Royal Cargo, Inc., and under the terms of the leases,
12
<PAGE>
the lessees have the obligation to repair and maintain the engines. GECAS is
requesting information from the lessees about the status of their Year 2000
program.
Aside from maintenance and other matters relating to the Partnership's
aircraft-related assets discussed above, the principal third-party vendors to
the Partnership are those providing the Partnership with services such as
accounting, auditing, banking and investor services. GECAS intends to apply the
same standards in determining the Year 2000 capabilities of the Partnership's
third-party vendors as GECAS will apply with respect to its outside vendors
pursuant to its internal Year 2000 program.
The scope of the global Year 2000 effort encompasses many thousands of
applications and computer programs; products and services; facilities and
facilities-related equipment; suppliers; and, customers. The Partnership, like
all business operations, is also dependent on the Year 2000 readiness of
infrastructure suppliers in areas such as utility, communications,
transportation and other services. In this environment, there will likely be
instances of failure that could cause disruptions in business processes or that
could affect customers' ability to repay amounts owed to the Partnership or
vendors' ability to provide services without interruption. The likelihood and
effects of failures in infrastructure systems, over which the Partnership has no
control, cannot be estimated. However, aside from the impact of any such
possible failures or the possibility of a disruption of the Partnership's
lessees' business caused by Year 2000 failures, the General Partner does not
believe that occurrences of Year 2000 failures will have a material adverse
effect on the financial position, results of operations or liquidity of the
Partnership.
To date, the Partnership has not incurred any Year 2000 expenditures nor does it
expect to incur any material costs in the future. However, the activities
involved in the Year 2000 effort necessarily involve estimates and projections
of activities and resources that will be required in the future. These estimates
and projections could change as work progresses.
13
<PAGE>
Part II. Other Information
--------------------------
Item 1. Legal Proceedings
As discussed in Item 3 of Part I of Polaris Aircraft Income Fund I's (the
Partnership) 1997 Annual Report to the Securities and Exchange Commission (SEC)
on Form 10-K (Form 10-K) and in Item 1 of Part II of the Partnership's Quarterly
Report to the SEC on Form 10-Q (Form 10-Q) for the periods ended March 31, 1998
and June 30, 1998, there are a number of pending legal actions or proceedings
involving the Partnership. Except as described below, there have been no
material developments with respect to any such actions or proceedings during the
period covered by this report.
CanAir Cargo Ltd. (CanAir) Order under the Companies' Creditors Arrangement Act
of Canada - The receiver appointed by the Ontario Court of Justice on behalf of
CanAir's creditors has sold one of the remaining five Convair 280 aircraft owned
by CanAir, as well as most of CanAir's other assets, including spare parts and
accounts receivable. Subject to court approval, the proceeds of the sale will be
distributed to CanAir's creditors, including the Partnership, GE Capital
Aviation Services, Inc., as agent for Polaris Holding Company, and General
Electric Capital Leasing Canada, Inc. (collectively, the GECAS Parties).
However, the amount of the sale proceeds that the GECAS Parties will receive has
not yet been determined by the court.
Other Proceedings - Item 10 in Part III of the Partnership's 1997 Form 10-K and
Item 1 in Part II of the Partnership's Form 10-Q for the periods ended March 31,
1998 and June 30, 1998 discuss certain actions which have been filed against
Polaris Investment Management Corporation and others in connection with the sale
of interests in the Partnership and the management of the Partnership. The
Partnership is not a party to these actions. There have been no material
developments with respect to any of the actions described therein during the
period covered by this report.
Item 6. Exhibits and Reports on Form 8-K
a) Exhibits (numbered in accordance with Item 601 of Regulation S-K)
27. Financial Data Schedule (in electronic format only).
b) Reports on Form 8-K
No reports on Form 8-K were filed by the Registrant during the quarter for
which this report is filed.
14
<PAGE>
SIGNATURE
Pursuant to the requirements of section 13 or 15(d) of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
POLARIS AIRCRAFT INCOME FUND I
(Registrant)
By: Polaris Investment
Management Corporation,
General Partner
November 16, 1998 By: /S/Marc A. Meiches
- ---------------------------------- ------------------
Marc A. Meiches
Chief Financial Officer
(principal financial officer and
principal accounting officer of
Polaris Investment Management
Corporation, General Partner of
the Registrant)
15
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<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> SEP-30-1998
<CASH> 5910072
<SECURITIES> 0
<RECEIVABLES> 31589
<ALLOWANCES> 30365
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 960000
<DEPRECIATION> 71250
<TOTAL-ASSETS> 6800046
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 4560285
<TOTAL-LIABILITY-AND-EQUITY> 6800046
<SALES> 0
<TOTAL-REVENUES> 887645
<CGS> 0
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<OTHER-EXPENSES> 143263
<LOSS-PROVISION> 0
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<INCOME-PRETAX> 744382
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