SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
____________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report: March 22, 1995
CAPITAL ASSOCIATES, INC.
(Exact Name of Registrant as Specified in Charter)
Delaware 0-15525
(State of Incorporation) (Commission File Number)
84-1055327
(IRS Employer Identification No.)
7175 West Jefferson Avenue, Lakewood, Colorado 80235
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (303) 980-1000
<PAGE>
Item 5. Other Events
On March 17, 1995, the Registrant issued the press
release attached hereto as Exhibit 99, which is
incorporated herein by reference. The press release
announced that the Federal District Court in Dallas held
in the Registrant's favor in the MBank litigation. The
press release briefly describes the litigation and the
events that gave rise to it. The press release also
announced that (1) the Registrant is entitled to recover
damages from the cash collateral currently held under the
supervision of the court, (2) the court did not fix the
amount of the Registrant's damages in its decision, (3)
the Registrant is making this calculation, (4) while the
final calculation is not yet available, the Registrant
estimates that its damages (including interest and
attorneys' fees) will exceed $9 million and (5) the
Registrant will finalize its damage calculation as
quickly as possible and seek payment of such damages
immediately thereafter. The press release stated that
the Registrant cannot predict when it will receive such
payment or whether the FDIC will appeal the court's
decision.
Item 7. Financial Statements and Exhibits
(c) Exhibits
99 Press release issued March 17, 1995 by the
Registrant
<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 hereunto duly authorized.
CAPITAL ASSOCIATES, INC.
Registrant
Date: March 22, 1995 By: /s/John E. Christensen
_________________________________
John E. Christensen
Senior Vice President and
Chief Financial Officer
<PAGE>
EXHIBIT INDEX
Item
99 Additional Exhibits
FOR IMMEDIATE RELEASE: March 17, 1995
CONTACT: Dennis J. Lacey, President and CEO
Capital Associates, Inc.
(303) 980-1000
CAPITAL ASSOCIATES REPORTS VICTORY IN THE MBANK CASE
Lakewood, CO --- Capital Associates, Inc. (CAI) (CAPITAL ASSOCIATES
INTERNATIONAL, INC.-NMS NASDAQ), an asset management and financial services
company, announced today that the Dallas Federal District Court held
yesterday in Capital's favor in the MBank litigation.
The MBank litigation commenced in early 1992. The litigation arose out of
the failure of MBank, Dallas, N.A. The Office of the Comptroller of the
Currency placed MBank in receivership, and appointed the FDIC as its receiver,
in March 1989. Later in 1989, the FDIC sought to disaffirm certain lease
obligations owed by MBank to Capital and to recover all of the cash
collateral securing such obligations, as well as certain payments that had been
made to Prudential Insurance Company of America, which had provided financing
for a portion of the lease transaction.
The Court determined, among other things, that Capital is entitled to
recover liquidated damages, calculated according to the terms of the
governing lease documents, from the cash collateral for the lease. As of
February 28, 1995, the amount of such cash collateral, which is being held
under the supervision of the Court, exceeded $19 million.
The Court did not fix the amount of Capital's damages in its decision.
Capital is making this calculation. While the final calculation is not yet
available, Capital estimates that its damages (including interest and attorneys'
fees), as finally determined, will exceed $9 million.
Capital intends to finalize the calculation of its damages as quickly as
possible and to seek payment of such damages immediately thereafter. Capital
cannot predict at this time when it will receive such payment. In addition, the
Company cannot predict whether the FDIC will appeal the Court's decision.
Capital Associates, Inc. is one of the largest independent general
equipment leasing companies in the United States. Established in 1976, CAI has
arranged nearly $3 billion in equipment financing. CAI provides leasing,
financing, portfolio and asset management services for new and used equipment.
###
