<PAGE> 1
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 (Date of earliest event reported) October 30, 1997
PaineWebber Preferred Yield Fund, L.P.
(Exact Name of Registrant as Specified in Charter)
Delaware 0-19166 84-1130506
(State or Other Jurisdiction (Commission (IRS Employer
Of Incorporation) File Number) (Identification No.)
7175 West Jefferson Avenue, Suite 4000, Lakewood, CO. 80235
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (303) 980-1000
N/A
(Former Name or Former Address, if Changed Since Last Report)
<PAGE> 2
Item 5 Other Events
In October 1997, the Partnership entered into an agreement with an unaffiliated
third party to sell certain equipment subject to leases with various
unaffiliated lessees for an aggregate sale price of $15,338,420. The equipment,
which included printers, transportation, industrial, communication,
manufacturing and research equipment was originally purchased for purchase
prices aggregating $29,855,031 and had an aggregate net book value of
$16,323,645 at September 30, 1997. The Partnership recognized a writedown of
$1,000,000 at September 30, 1997 to reflect the difference between the sale
price and the depreciated value of the equipment. The sale was consummated and
the sales proceeds were received on October 30, 1997. Of the proceeds received,
$156,476 was utilized to repay related non-recourse debt and the balance, less
any amount required for Partnership operations, will be available for
distribution to partners in January 1998. The equipment sold represented
approximately 47% of the Partnership's remaining equipment on an original cost
basis at September 30, 1997, and represented approximately 70% of the September
1997 monthly rental billings (approximately 82% of the then current rent level
being generated for cash flow purposes (which excludes the amortization of the
prepaid rent associated with a prior financing transaction and rents assigned to
repay previous borrowings). The Managing General Partner of the Partnership is
investigating sales opportunities with respect to the remaining portfolio of
equipment in order to complete the liquidation of the Partnership, which is
anticipated to occur by the end of 1998.
<PAGE> 3
SIGNATURE
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, thereunto duly authorized.
PaineWebber Preferred Yield Fund, L.P. (Registrant)
By: General Equipment Management, Inc.
Administrative General Partner
Dated: November 10, 1997 By: /s/ Joseph P. Ciavarella
---------------------------
Joseph P. Ciavarella
Vice President, Treasurer and
Chief Financial and Accounting Officer
