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) September 30, 1996
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(September 13, 1996)
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Datronic Equipment Income Fund XX, L.P.
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(Exact name of Registrant as specified in its charter)
Delaware 0-21260 36-3763539
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(State of Other (Commission (IRS Employer
Jurisdiction of file number) Identification
Incorporation) Number)
1300 E. Woodfield Road, Suite 312 Schaumburg, Illinois 60173
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(Address of principal executive offices) (City, State, Zip Code)
Registrant's telephone number, including area code (847)240-6200
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(Former name or former address, if changed since last report)
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ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS.
As previously disclosed, Computer Rental Corp. of America (CRCA)
sold substantially all of its assets for $700,000 to New CRCA, a
newly-formed company owned by an executive of Lease Resolution
Corporation (LRC), the general partner of the Partnership (see Note
14 to the Partnership's 1995 Form 10-K. Subsequently in 1996, New
CRCA received an offer from PCR International, Inc. (PCR) to
purchase substantially the same assets sold to New CRCA in the
aforementioned transaction for an amount substantially in excess of
the purchase price paid by New CRCA. In order to ensure that the
Partnerships received maximum benefit from the sale of CRCA, CRCA
repurchased the assets sold to New CRCA for $659,659, the original
purchase price plus tax liabilities accrued by New CRCA less
payments made on the original promissory note. The repurchase
price was paid in the form of cash ($116,000) and the cancellation
of the unpaid promissory note given by New CRCA ($543,659).
On September 13, 1996, CRCA sold all of the assets repurchased from
New CRCA (excluding cash) to a subsidiary of PCR (PCR Sub) for
approximately $6.2 million. The purchase price was paid in the
form of a senior note of $1,500,000, a subordinated note of
approximately $4,200,000, and the assumption of approximately
$500,000 of liabilities. Both notes bear interest at 9%.
Principal and interest are payable monthly in the aggregate amount
of approximately $118,000 commencing November 1, 1996. All
principal payments are to be applied to the senior note. The
unpaid principal balances aggregating $4.8 million are due November
1, 1997. The senior note is secured by a priority security
interest in the assets of PCR Sub. The subordinated note is secured
by a security interest in the assets of PCR Sub which is
subordinate to a $14 million security interest of another PCR
creditor.
CRCA will utilize existing cash balances of approximately $750,000
and amounts received on the notes to liquidate all liabilities not
assumed by PCR Sub including expenses associated with the sale and
subject to Court approval, settlement of claims of the former
stockholders of CRCA under the indemnity provisions of the bylaws
of CRCA for $150,000. Remaining funds will be allocated 35% to the
Partnership and 65% to Fund XVIII in accordance with their
respective interests in the Master Lease with CRCA (see Note 14 in
the Partnership's 1995 Form 10-K). The Partnership will record
recoveries on the Master Lease with CRCA as the cash is received.
CRCA paid LRC $289,263 for CRCA related expenses previously
incurred by LRC and charged to the Partnership and Fund XVIII as
General Partner expenses. The amounts repaid to LRC by CRCA has
been allocated to the Partnership and Fund XVIII in the manner in
which those expenses were originally charged. Accordingly LRC paid
$101,242 to the Partnership and $188,021 to Fund XVIII in September
1996.
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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 30th day of
September 1996.
DATRONIC EQUIPMENT INCOME FUND XX, L.P.
Registrant
By: Donald D. Torisky
DONALD D. TORISKY
Chairman and Chief Executive Officer
Lease Resolution Corporation
General Partner of
Datronic Equipment Income Fund XX, L.P.
