UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
Quarterly Report Under Section 13
or 15 (d) of the Securities
Exchange Act of 1934
----------------------------------
For the Quarter Ended
June 30, 1996 Commission File Number 0-21276
- --------------------- --------------------------------
DATRONIC FINANCE INCOME FUND I, L.P.
------------------------------------
(Exact name of Registrant as specified in its charter)
Delaware 36-3744792
- ------------------- -------------------------------
State or other IRS Employer Identification
jurisdiction of Number
incorporation or
organization
1300 E. Woodfield Road, Suite 312 Schaumburg, Illinois 60173
- --------------------------------- -------------------------------
Address of principal City, State, Zip Code
executive offices
Registrant's telephone number: (847) 240-6200
-------------------------------
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
(or for such shorter period that the Registrant was required
to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
(1) Yes x No
--- ---
(2) Yes x No
--- ---
<PAGE>
DATRONIC FINANCE INCOME FUND I, L.P.
------------------------------------
FORM 10-Q
---------
FOR THE QUARTER ENDED JUNE 30, 1996
-----------------------------------
PART I - FINANCIAL INFORMATION
Item 1.
- -------
Index to Financial Statements
Balance Sheets
June 30, 1996 (unaudited)
December 31, 1995
Statements of Revenue and Expenses (unaudited)
For the three months ended June 30, 1996
For the three months ended June 30, 1995
For the six months ended June 30, 1996
For the six months ended June 30, 1995
Statements of Changes in Partners' Equity
For the six months ended June 30, 1996
(unaudited)
Statements of Cash Flows (unaudited)
For the six months ended June 30, 1996
For the six months ended June 30, 1995
Notes to Financial Statements (unaudited)
Item 2.
- -------
Management's Discussion and Analysis of
Financial Condition and Results of Operations
PART II - OTHER INFORMATION
Items 1-6.
- ----------
<PAGE>
DATRONIC FINANCE INCOME FUND I, L.P.
------------------------------------
BALANCE SHEETS
--------------
June 30, 1996 - Unaudited
-------------------------
Liquidating Continuing
Limited Limited
Partners Partners Total
---------- ------------ ----------
ASSETS
- ------
Cash and cash equivalents $480,724 $1,689,553 $2,170,277
Net investment in direct
financing leases 35,813 4,243,035 4,278,848
Diverted and other assets,
net 154,191 1,012,162 1,166,353
Organization costs, net of
accumulated amortization 1,996 13,107 15,103
Acquisition costs, net of
accumulated amortization 5,915 38,826 44,741
-------- ---------- ----------
$678,639 $6,996,683 $7,675,322
======== ========== ==========
LIABILITIES AND PARTNERS' EQUITY
- --------------------------------
Accounts payable and
accrued expenses $ 3,357 $ 32,161 $ 35,518
Lessee rental deposits 34,695 285,404 320,099
Due to management company 41 331 372
-------- ---------- ----------
Total liabilities 38,093 317,896 355,989
Total partners' equity 640,546 6,678,787 7,319,333
-------- ---------- ----------
$678,639 $6,996,683 $7,675,322
======== ========== ==========
[FN]
See accompanying notes to financial statements.
<PAGE>
DATRONIC FINANCE INCOME FUND I, L.P.
------------------------------------
BALANCE SHEETS
--------------
December 31, 1995
-----------------
Liquidating Continuing
Limited Limited
Partners Partners Total
---------- ------------ ----------
ASSETS
- ------
Cash and cash equivalents $469,897 $1,079,361 $1,549,258
Net investment in direct
financing leases 72,639 5,699,235 5,771,874
Diverted and other assets,
net 154,191 1,012,162 1,166,353
Restricted cash 44,363 291,209 335,572
Organization costs, net of
accumulated amortization 5,990 39,319 45,309
Acquisition costs, net of
accumulated amortization 17,744 116,479 134,223
-------- ---------- ----------
$764,824 $8,237,765 $9,002,589
======== ========== ==========
LIABILITIES AND PARTNERS' EQUITY
- --------------------------------
Accounts payable and
accrued expenses $ 7,934 $ 63,322 $ 71,256
Lessee rental deposits 40,486 338,107 378,593
Due to management company 37 243 280
-------- ---------- ----------
Total liabilities 48,457 401,672 450,129
Total partners' equity 716,367 7,836,093 8,552,460
-------- ---------- ----------
$764,824 $8,237,765 $9,002,589
======== ========== ==========
[FN]
See accompanying notes to financial statements.
<PAGE>
DATRONIC FINANCE INCOME FUND I, L.P.
------------------------------------
STATEMENTS OF REVENUE AND EXPENSES
----------------------------------
For the three months ended June 30, 1996
----------------------------------------
(Unaudited)
Liquidating Continuing
Limited Limited
Partners Partners Total
---------- ------------ ----------
Revenue:
Lease income (loss) $ (3,860) $ 124,360 $ 120,500
Interest income 7,635 70,568 78,203
-------- --------- ----------
3,775 194,928 198,703
-------- --------- ----------
Expenses:
Amortization of
organization and
equipment acquisition
costs 7,912 51,933 59,845
Management fees-New Era 19,236 173,265 192,501
General Partner's
expense reimbursement 1,966 12,909 14,875
Professional fees 6,133 43,097 49,230
Other operating expenses 59 2,956 3,015
Provision for lease losses - 75,000 75,000
-------- --------- ----------
35,306 359,160 394,466
-------- --------- ----------
Net loss $(31,531) $(164,232) $ (195,763)
======== ========= ==========
Net loss -
General Partner $ (315) $ (1,642) $ (1,957)
======== ========= ==========
Net loss -
Limited Partners $(31,216) $(162,590) $ (193,806)
======== ========= ==========
Net loss per Limited
Partnership Unit $(4.05) $(3.22)
====== ======
Weighted average number
of Limited Partnership
Units outstanding 7,699 50,535
====== ======
[FN]
See accompanying notes to financial statements.
<PAGE>
DATRONIC FINANCE INCOME FUND I, L.P.
------------------------------------
STATEMENTS OF REVENUE AND EXPENSES
----------------------------------
For the three months ended June 30, 1995
----------------------------------------
(Unaudited)
Liquidating Continuing
Limited Limited
Partners Partners Total
---------- ------------ ----------
Revenue:
Lease income $ 5,676 $ 250,550 $ 256,226
Interest income 821 8,405 9,226
--------- --------- ---------
6,497 258,955 265,452
--------- --------- ---------
Expenses:
Amortization of
organization and
equipment acquisition
costs 7,911 51,934 59,845
Management fees-New Era 18,107 245,444 263,551
General Partner's
expense reimbursement 4,624 30,353 34,977
Professional fees 10,697 78,702 89,399
Other operating expenses 290 10,635 10,925
--------- --------- ---------
41,629 417,068 458,697
--------- --------- ---------
Net loss $ (35,132) $(158,113) $(193,245)
========= ========= =========
Net loss -
General Partner $ (351) $ (1,581) $ (1,932)
========= ========= =========
Net loss -
Limited Partners $ (34,781) $(156,532) $(191,313)
========= ========= =========
Net loss per Limited
Partnership Unit $(4.52) $(3.10)
======= =======
Weighted average number
of Limited Partnership
Units outstanding 7,699 50,535
======= =======
[FN]
See accompanying notes to financial statements.
<PAGE>
DATRONIC FINANCE INCOME FUND I, L.P.
------------------------------------
STATEMENTS OF REVENUE AND EXPENSES
----------------------------------
For the six months ended June 30, 1996
--------------------------------------
(Unaudited)
Liquidating Continuing
Limited Limited
Partners Partners Total
---------- ------------ ----------
Revenue:
Lease income (loss) $ (1,644) $ 306,293 $ 304,649
Interest income 7,919 81,578 89,497
-------- --------- ----------
6,275 387,871 394,146
-------- --------- ----------
Expenses:
Amortization of
organization and
equipment acquisition
costs 15,823 103,865 119,688
Management fees-New Era 39,505 366,816 406,321
General Partner's
expense reimbursement 8,809 57,827 66,636
Professional fees 16,245 113,228 129,473
Other operating expenses 1,714 15,043 16,757
Provision for lease losses - 125,000 125,000
-------- --------- ----------
82,096 781,779 863,875
-------- --------- ----------
Net loss $(75,821) $(393,908) $ (469,729)
======== ========= ==========
Net loss -
General Partner $ (758) $ (3,939) $ (4,697)
======== ========= ==========
Net loss -
Limited Partners $(75,063) $(389,969) $ (465,032)
======== ========= ==========
Net loss per Limited
Partnership Unit $(9.75) $(7.72)
====== ======
Weighted average number
of Limited Partnership
Units outstanding 7,699 50,535
====== ======
[FN]
See accompanying notes to financial statements.
<PAGE>
DATRONIC FINANCE INCOME FUND I, L.P.
------------------------------------
STATEMENTS OF REVENUE AND EXPENSES
----------------------------------
For the six months ended June 30, 1995
--------------------------------------
(Unaudited)
Liquidating Continuing
Limited Limited
Partners Partners Total
---------- ------------ ----------
Revenue:
Lease income $ 14,148 $ 522,478 $ 536,626
Interest income 1,489 18,627 20,116
-------- --------- ---------
15,637 541,105 556,742
-------- --------- ---------
Expenses:
Amortization of
organization and
equipment acquisition
costs 15,822 103,867 119,689
Management fees-New Era 39,598 464,603 504,201
General Partner's
expense reimbursement 7,155 46,968 54,123
Professional fees 19,375 138,663 158,038
Other operating expenses 734 17,732 18,466
Credit for lease losses (19,494) (127,964) (147,458)
-------- --------- ---------
63,190 643,869 707,059
-------- --------- ---------
Net loss $ (47,553) $(102,764) $(150,317)
========= ========= =========
Net loss -
General Partner $ (476) $ (1,028) $ (1,504)
========= ========= =========
Net loss -
Limited Partners $ (47,077) $(101,736) $(148,813)
========= ========= =========
Net loss per Limited
Partnership Unit $(6.11) $ (2.01)
====== =======
Weighted average number
of Limited Partnership
Units outstanding 7,699 50,535
====== =======
[FN]
See accompanying notes to financial statements.
<PAGE>
<TABLE>
DATRONIC FINANCE INCOME FUND I, L.P.
------------------------------------
STATEMENTS OF CHANGES IN PARTNERS' EQUITY
-----------------------------------------
(Unaudited)
<CAPTION>
Liquidating Continuing
General Limited Limited Total
Partner's Partners' Partners' Partners'
Equity Equity Equity Equity
----------- ----------- ----------- ----------
<S> <C> <C> <C>
Balance, December 31, 1995 $(225,857)* $733,761 $ 8,044,556 $8,552,460
Distributions to partners
(Note 3) (7,433) - (755,965) (763,398)
Net loss (4,697) (75,063) (389,969) (469,729)
Allocation of General
Partner's equity 237,987 (18,152) (219,835) -
---------- -------- ----------- ----------
Balance, June 30, 1996 $ - $640,546 $6,678,787 $7,319,333
========== ======== =========== ==========
<FN>
* Balance as previously reported was $0 due to allocation of $17,394 and $208,463 to Liquidating and Continuing Limited
Partners' Equity, respectively.
<FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
DATRONIC FINANCE INCOME FUND I, L.P.
------------------------------------
STATEMENTS OF CASH FLOWS
------------------------
For the six months ended June 30, 1996
--------------------------------------
(Unaudited)
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
----------- ----------- -----------
<S> <C> <C> <C>
Cash flows from operating activities:
Net loss $ (75,821) $ (393,908) $ (469,729)
Adjustments to reconcile net loss
to net cash used in operating
activities:
Amortization expense 15,823 103,865 119,688
Provision for lease losses - 125,000 125,000
Changes in assets and liabilities:
Accounts payable and accrued
expenses (4,577) (31,161) (35,738)
Lessee rental deposits (5,791) (52,703) (58,494)
Due to management company 4 88 92
---------- ----------- ----------
(70,362) (248,819) (319,181)
---------- ----------- ----------
Cash flows from investing activities:
Principal collections on leases 36,826 1,331,200 1,368,026
Release of restricted cash 44,363 291,209 335,572
---------- ----------- ----------
81,189 1,622,409 1,703,598
---------- ----------- ----------
Cash flows from financing activities:
Distributions to Limited Partners (a) - (755,965) (755,965)
Distributions to General Partner - (7,433) (7,433)
---------- ----------- ----------
- (763,398) (763,398)
---------- ----------- ----------
Net increase in cash and
cash equivalents 10,827 610,192 621,019
Cash and cash equivalents:
Beginning of year 469,897 1,079,361 1,549,258
---------- ----------- ----------
End of second quarter $480,724 $1,689,553 $2,170,277
========== =========== ==========
<FN>
(a) Distributions during the period were $0 per unit for Liquidating Limited Partners and $14.96 per
unit for Continuing Limited Partners (see Note 3).
<FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
DATRONIC FINANCE INCOME FUND I, L.P.
------------------------------------
STATEMENTS OF CASH FLOWS
------------------------
For the six months ended June 30, 1995
--------------------------------------
(Unaudited)
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
----------- ------------ -------------
<S> <C> <C> <C>
Cash flows from operating activities:
Net loss $ (47,553) $ (102,764) $ (150,317)
Adjustments to reconcile net loss
to net cash used in operating
activities:
Amortization expense 15,822 103,867 119,689
Credit for lease losses (19,494) (127,964) (147,458)
Changes in assets and liabilities:
Accounts payable and accrued
expenses (4,917) (23,816) (28,733)
Lessee rental deposits (749) (14,853) (15,602)
Due to management company 50 38,078 38,128
--------- ------------ ------------
(56,841) (127,452) (184,293)
--------- ------------ ------------
Cash flows from investing activities:
Purchases of lease receivables - (2,745,504) (2,745,504)
Principal collections on leases 115,768 1,999,346 2,115,114
Sale of leases (Note 4) 4,879 1,127,705 1,132,584
Distribution of diverted and other assets 57,031 374,371 431,402
Distribution of Datronic assets 5,300 34,788 40,088
--------- ------------ ------------
182,978 790,706 973,684
--------- ------------ ------------
Cash flows from financing activities:
Distributions to Limited Partners (a) (20,017) (1,574,922) (1,594,939)
Distributions to General Partner (1,767) (32,954) (34,721)
--------- ------------ ------------
(21,784) (1,607,876) (1,629,660)
--------- ------------ ------------
Net increase (decrease) in cash
and cash equivalents 104,353 (944,622) (840,269)
--------- ------------ ------------
Cash and cash equivalents:
Beginning of year 320,268 1,801,421 2,121,689
--------- ------------ ------------
End of second quarter $424,621 $ 856,799 $ 1,281,420
========= ============ ============
<FN>
(a)Distributions during the period were $2.60 per unit for Liquidating Limited Partners and $31.16
per unit for Continuing Limited Partners.
<FN>
See accompanying notes to financial statements.
</TABLE>
PAGE
<PAGE>
DATRONIC FINANCE INCOME FUND I, L.P.
------------------------------------
NOTES TO FINANCIAL STATEMENTS
June 30, 1996
(Unaudited)
NOTE 1 - ORGANIZATION:
- ----------------------
Datronic Finance Income Fund I, L.P., a Delaware Limited
Partnership (the "Partnership"), was formed on November 21, 1990
for the purpose of leasing both high- and low-technology equipment.
Reference is made to Notes 4, 6, 7 and 8 to the Partnership's
financial statements included in the 1995 Form 10-K for a
discussion of the alleged diversion of Partnership assets in 1991
and 1992 and the subsequent litigation and settlement, change in
general partner, new classes of limited partners established and
amendments to the Partnership Agreement which occurred.
NOTE 2 - BASIS OF FINANCIAL STATEMENTS:
- ---------------------------------------
The accompanying financial statements should be read in conjunction
with the Partnership's financial statements included in the 1995
Form 10-K. The financial information furnished herein is unaudited
but in the opinion of Management includes all adjustments necessary
(all of which are normal recurring adjustments) for a fair
presentation of financial condition and results of operations. See
Note 3 to the Partnership's financial statements included in the
1995 Form 10-K.
NOTE 3 - LIMITED PARTNERSHIP DISTRIBUTIONS:
- -------------------------------------------
Distributions to Liquidating Limited Partners were suspended after
payment of the April 1, 1995 distribution and distributions to
Continuing Limited Partners were reduced from 12.5% annually to an
annual rate of 6% effective with the October 1, 1995 distribution.
On October 1, 1996, the Partnership will enter its Liquidating
Phase. Accordingly, the Continuing Limited Partners will receive
their last reduced Target Distribution on September 1, 1996 and
their first Liquidating Distribution on October 1, 1996.
NOTE 4 - LEASE PORTFOLIO SALES:
- -------------------------------
During the six months ended June 30, 1995, the Partnership,
Datronic Equipment Income Fund XVIII, L.P., Datronic Equipment
Income Fund XIX, L.P., and Datronic Equipment Income Fund XX, L.P.
each entered into separate lease purchase agreements with Southern
Pacific Thrift & Loan Association to sell equipment leases at
discount rates ranging from 10.75% to 11.75% which resulted in
aggregate net proceeds of approximately $4.8 million. The
Partnership's proceeds were approximately $1.1 million. Of this
amount, approximately all of the proceeds were allocable to
Continuing Limited Partners and invested in new leases.
<PAGE>
PART I
- ------
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
- ----------------------------------------------------------
The following discussion and analysis of liquidity and capital
resources covers material changes in the Partnership's financial
condition from December 31, 1995 through June 30, 1996. The
discussion and analysis of results of operations is for the three
and six month periods ended June 30, 1996 as compared to the
corresponding periods in 1995.
Financial Condition, Liquidity and Capital Resources
- ----------------------------------------------------
During the six months ended June 30, 1996, Partnership assets were
converted to cash in order to pay Partnership operating expenses
and make distributions to the Continuing Limited Partners and
General Partner and to increase cash balances to ensure that
sufficient cash will be available to pursue pending litigation and
liquidate the Partnership in an orderly manner.
Net investment in direct financing leases decreased approximately
$1,493,000 during the six months ended June 30, 1996. This
decrease is primarily attributable to principal collections of
approximately $1,368,000 and a provision for lease losses of
$125,000.
Restricted cash of approximately $336,000 has been included in cash
and cash equivalents due to the removal of claims against such cash
(see Part II, Item 1 - Legal Proceedings). This cash was repaid to
the Partnership with interest in June 1996.
In the aggregate, partners' equity decreased approximately $1.2
million during the six months ended June 30, 1996 due to a net loss
of approximately $470,000 and distributions to partners of
approximately $763,000.
During the six months ended June 30, 1996, the Partnership's
operating activities resulted in an approximate use of $319,000 of
cash. This was due principally to a net loss of approximately
$470,000 and decreases in accounts payable and security deposits of
approximately $94,000 partially offset by non-cash expenses of
approximately $120,000 relating to amortization and a provision of
$125,000 for lease losses. During the period, cash flows from
investing activities aggregated approximately $1,074,000 relating
to principal collections on leases of approximately $1,368,000 and
the availability of restricted cash in the amount of approximately
$336,000. Cash flows used for financing activities of
approximately $763,000, consisted of distributions to Continuing
Limited Partners of approximately $756,000 and the General Partner
of approximately $7,000.
The Partnership's principal sources of liquidity on both a
long-term and short-term basis are receipts from leases and cash on
hand. In addition, the Partnership's sources of liquidity on a
long-term basis are expected to include proceeds from the sale of
diverted and other assets and, possibly, portions of the
Partnership's lease portfolio which may be sold in bulk.
Management believes that its sources of liquidity in the short and
long-term are sufficient to meet its operating cash obligations.
Distributions to the Liquidating Limited Partners were suspended
after payment of the April 1, 1995 distribution. Distributions to
the Continuing Limited Partners were reduced to an annual rate of
6% effective with the October 1, 1995 distribution. On October 1,
1996, the Partnership will enter the Liquidating Phase.
Accordingly, the Continuing Limited Partners will receive their
last reduced Target Distribution on September 1, 1996 and their
first Liquidating Distribution on October 1, 1996. Distributions
to the Liquidating Limited Partners were suspended and
distributions to the Continuing Limited Partners were reduced to
ensure that sufficient cash will be available to pursue recoveries
under pending litigation with the Partnership's former accountants
and others and to liquidate the Partnership in an orderly manner.
The provisions of the Amended Partnership Agreement require the
Partnership to enter its liquidating phase if full Target
Distributions are not met for four consecutive calendar quarters.
In addition, lease reinvestment activity is prohibited during the
liquidating phase and in any period in which full Target
Distributions have not been paid.
The continued operation and eventual liquidation of the Partnership
involves numerous complex issues which have to be resolved. These
issues relate to the timing and realizability of lease-related
assets, diverted and other assets, Datronic assets, litigation and
the liquidation of the other Datronic Partnerships (see Notes 4, 6
and 9 to the financial statement included in the 1995 Form 10-K).
These issues make it difficult to predict the time and costs
necessary to operate and liquidate the Partnership in an orderly
manner. As a result of these uncertainties, it is not possible to
predict the timing and availability of cash for future
distributions to Limited Partners. However, it is likely that the
amount of future distributions, if any, to the Limited Partners
will ultimately be significantly less than the amount of Partner's
Equity reflected in the June 30, 1996 Balance Sheets (see financial
statement included in Item 1).
Results of Operations
- ---------------------
Lease income decreased approximately $136,000 and $232,000 for the
three and six months ended June 30, 1996 compared to the
corresponding periods in 1995. The decrease is primarily due to a
decline in the lease portfolios and a $45,000 provision recorded in
the second quarter of 1996 to provide for the return of lessee
overpayments previously recorded as lease income.
Interest income increased approximately $69,000 for both the three
and six months ended June 30, 1996 as compared to the corresponding
periods in 1995. The increase is primarily due to the recognition
in the second quarter of 1996 of interest previously earned on
restricted cash balances.
Management fees-New Era represent amounts paid New Era for managing
the Partnership on a day-to-day basis and for acquiring leases for
the Continuing Limited Partners. These fees amounted to
approximately $193,000 and $406,000 for the three and six months
ended June 30, 1996 as compared to $264,000 and $504,000 for the
same periods in 1995. The decreases are attributable to declining
Partnership activity and the cessation of lease acquisitions in
September 1995. See Note 8 to the Partnership's financial
statements included in the 1995 Form 10-K.
The General Partner's expense reimbursement represents the amount
paid to LRC in excess of LRC's 1% share of cash flow available for
distribution. Total amounts paid to LRC are primarily a function
of the amount of time LRC spends on the activities of the
Partnership and the timing of certain LRC expenses. Total amounts
paid to LRC for the three and six months ended June 30, 1996 were
approximately $18,000 and $74,000 ($15,000 and $67,000,
respectively, representing the General Partner's expense
reimbursement and $3,000 and $7,000, respectively, representing
LRC's 1% cash flow available for distribution) as compared to
$51,000 and $89,000 ($35,000 and $54,000, respectively,
representing the General Partner's expense reimbursement and
$16,000 and $35,000, respectively, representing LRC's 1% of cash
flow available for distribution) for the three and six months ended
June 30, 1995. See Note 7 to the Partnership's financial
statements included in the 1995 Form 10-K.
Professional Fees decreased approximately $40,000 and $29,000 for
the three and six months ended June 30, 1996 as compared to the
corresponding periods in 1995 primarily due to decreased audit fees
and legal fees related to collections and Partnership claims
against former accountants and others.
The provision (credit) for lease losses reflects Management's
ongoing assessment of potential losses inherent in the lease
portfolios and, in 1995, actual collections for certain leases in
excess of those anticipated in prior years.
<PAGE>
PART II - OTHER INFORMATION
- ---------------------------
ITEM 1. LEGAL PROCEEDINGS
- --------------------------
Reference is made to Item 3 - Legal Proceedings in the
Partnership's December 31, 1995 Form 10-K for a discussion of
material legal proceedings involving the Partnership.
Reference is made to Part II, Item 1 - Legal Proceedings in the
Partnership's March 31, 1996 Form 10-Q for a discussion of legal
proceedings involving claims against restricted cash and diverted
and other assets.
ITEM 2. CHANGES IN SECURITIES
- ------------------------------
None.
ITEM 3.
- -------
Not applicable.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
- ------------------------------------------------------------
None.
ITEM 5.
- -------
Not applicable.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
- -----------------------------------------
(a) Exhibits
- -------------
See Exhibit Index.
(b) Reports on Form 8-K
- ------------------------
None.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1934, the
Registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized, on the 12th day of
August 1996.
DATRONIC FINANCE INCOME FUND I, L.P.
Registrant
By: DONALD D. TORISKY
Donald D. Torisky
Chairman and Chief Executive Officer
Lease Resolution Corporation
General Partner of
Datronic Finance Income Fund I, L.P.
By: DOUGLAS E. VAN SCOY
Douglas E. Van Scoy
Chief Financial Officer and Director
New Era Funding Corp.
Managing Agent of
Datronic Finance Income Fund I, L.P.
<PAGE>
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
27 Financial Data Schedule, which
is submitted electronically to
the Securities and Exchange
Commission for Information
only and not filed.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the Balance
Sheet and the Statements of Revenue and Expenses and is qualified in its
entirety by reference to such Report on Form 10-Q.
</LEGEND>
<CIK> 0000870255
<NAME>DATRONIC FINANCE INCOME FUND I, L.P.
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 2,170,277
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 7,675,322
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 7,319,333
<TOTAL-LIABILITY-AND-EQUITY> 7,675,322
<SALES> 0
<TOTAL-REVENUES> 394,146
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 16,757
<LOSS-PROVISION> 125,000
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (469,729)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
