================================================================================
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20594
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): August 28, 2000
Commission File Number 1-11011
THE FINOVA GROUP INC.
(Exact Name of Registrant as Specified in Its Charter)
Delaware 86-0695381
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
4800 North Scottsdale Road
Scottsdale, AZ 85251-7623
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, Including Area Code: 480-636-4800
================================================================================
<PAGE>
ITEM 5. OTHER EVENTS
On August 28, 2000 The FINOVA Group Inc., through its subsidiary FINOVA
Capital Corporation (collectively "FINOVA"), completed the sale of
substantially all the assets of its Commercial Services division to GMAC
Commercial Credit LLC, a wholly owned subsidiary of General Motors
Corporation, for approximately $235 million, subject to final
determination. The sale resulted in an after-tax loss from disposition
of $6.9 million, which included a $17.8 million after-tax charge for
unamortized goodwill. FINOVA will account for the division as a
discontinued operation. Therefore, FINOVA has recorded a provision for a
discontinued operation of $9.5 million after-tax for operating losses
estimated to occur during the phase out period from the date of sale
until remaining assets are disposed of and related personnel are
terminated or reassigned.
The Commercial Services division, which operated out of offices in New
York and Los Angeles, provided factoring and accounts receivable
management services to small and midsize businesses, primarily in the
apparel and textile industries. FINOVA decided to exit this business
because the factoring industry has become increasingly price competitive
over the past several years and it required critical mass significantly
greater than FINOVA's operations, and other reasons.
2
<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 thereunto duly authorized.
THE FINOVA GROUP INC.
(Registrant)
Dated: September 28, 2000 By /s/ Bruno A. Marszowski
------------------------------------
Bruno A. Marszowski, Senior Vice
President, Chief Financial Officer
and Controller
Principal Financial Officer/Authorized
Officer
3
