================================================================================
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1996
Commission file number: 0-25780
PRESIDIO CAPITAL CORP.
(Exact name of registrant as specified in its charter)
British Virgin Islands N/A
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
c/o Hemisphere Management (Cayman) Limited
Zephyr House, Mary Street, Grand Cayman,
Cayman Islands, British West Indies N/A
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (441) 295-9166
Former name, former address and former fiscal year,
if changed since last report N/A
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 and 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.
Yes [ X ] No [ ]
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date:
As of August 2, 1996, there were 8,766,569 Class A Common Shares,
U.S. $0.01 par value, outstanding.
================================================================================
<PAGE>
PRESIDIO CAPITAL CORP. AND SUBSIDIARIES
TABLE OF CONTENTS
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Statements of Net Assets in Liquidation as of June 30,
1996 (unaudited) and December 31, 1995 (audited)
Consolidated Statements of Changes in Net Assets in Liquidation for the
Three and Six Month Periods Ended June 30, 1996 and 1995 (unaudited)
Notes to Consolidated Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition
and Liquidation Activities
Part II -OTHER INFORMATION
Item 1. Legal Proceedings
Item 6. Exhibits and Reports on Form 8-K
SIGNATURES
<PAGE>
PRESIDIO CAPITAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF NET ASSETS IN LIQUIDATION
(Expressed in thousands of United States dollars)
<TABLE>
<CAPTION>
June 30, December 31,
1996 1995
--------- ----------
<S> <C> <C>
Assets:
Cash and cash equivalents (including restricted
cash of $23,827 and $21,603) ...................... $101,561 $120,613
Investments .......................................... 29,698 32,769
Contract rights ...................................... 36,187 235,681
Notes and other receivables (net of non-recourse
indebtedness of $-- and $17,599) ................. 97,943 76,193
Other assets ......................................... 5,098 5,519
-------- --------
Total assets ................... $270,487 $470,775
======== ========
Liabilities:
Debt ................................................. $ 900 $ 4,895
Dividends payable .................................... -- 10,014
Estimated costs of liquidation ....................... 55,698 64,638
Estimated tax liability .............................. 4,902 6,000
-------- --------
Total liabilities .............. 61,500 85,547
-------- --------
Net Assets in Liquidation ...... $208,987 $385,228
======== ========
</TABLE>
See notes to consolidated financial statements.
<PAGE>
PRESIDIO CAPITAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS IN LIQUIDATION
(UNAUDITED)
(Expressed in thousands of United States dollars)
<TABLE>
<CAPTION>
Three Month Period Six Month Period
Ended June 30, Ended June 30,
1996 1995 1996 1995
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Net Assets in Liquidation,
beginning of period ........ $ 335,132 $ 410,157 $ 385,228 $ 399,396
Dividends paid / accrued ... (140,191) (74,986) (192,763) (74,986)
Increase from revaluation of
assets and liabilities .. 11,619 6,322 13,077 14,607
Interest income ............ 2,427 1,981 3,445 4,457
--------- --------- --------- ---------
Net Assets in Liquidation,
end of period .............. $ 208,987 $ 343,474 $ 208,987 $ 343,474
========= ========= ========= =========
</TABLE>
See notes to consolidated financial statements.
<PAGE>
PRESIDIO CAPITAL CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Presidio Capital Corp. ("Presidio" and, collectively with its subsidiaries, the
"Company") was organized on August 29, 1994, in the British Virgin Islands under
the International Business Companies Act (Cap. 291), to purchase, directly or
through its subsidiaries, substantially all of the assets of Integrated
Resources, Inc. ("Integrated") for the purpose of liquidation and distribution
of capital to shareholders. The Company was formed in accordance with the Sixth
Amended Plan of Reorganization Submitted by the Official Committee of
Subordinated Bondholders and the Steinhardt Group, (the "Plan") confirmed by the
United States Bankruptcy Court for the Southern District of New York by order
dated August 8, 1994. The Plan was consummated on November 3, 1994 (the
"Consummation Date").
Reference is made to the notes to the consolidated financial statements for the
year ended December 31, 1995, included in the Company's Annual Report on Form
10-K ( the "Form 10-K") for information with regard to the organization,
significant accounting policies and disclosures made pursuant to the rules and
regulations of the Securities and Exchange Commission.
The interim financial data is unaudited; however, in the opinion of management,
the Company's interim financial data for the three and six month periods ended
June 30, 1996 includes all adjustments (consisting only of normal recurring
adjustments) necessary for a fair presentation of the results of the interim
period. These consolidated interim financial statements and notes thereto should
be read in conjunction with the consolidated financial statements and notes to
consolidated financial statements included in the Form 10-K.
Liquidation Basis
The Company's financial statements are prepared on the liquidation basis of
accounting. The liquidation basis of accounting is appropriate when liquidation
appears imminent and the Company is no longer viewed as a going concern. Under
this method of accounting, assets are stated at their estimated net realizable
values and liabilities are stated at their anticipated settlement amounts. The
valuations presented in these financial statements are presented in U.S. dollars
under U.S. generally accepted accounting principles.
The valuation of assets and liabilities requires many estimates and assumptions.
The actual value of any liquidating distributions will depend upon a variety of
factors including, among others, the actual market prices of any assets that may
be distributed in kind, the proceeds from the sale of any of the Company's
assets and the timing of distributions. The valuations presented in the
accompanying Statements of Net Assets in Liquidation represent estimates at the
dates shown, based on current facts and circumstances, of the estimated net
realizable value of assets and estimated costs of implementation of the Plan.
The net values ultimately realized and costs actually incurred could be higher
or lower than the amounts recorded.
NOTE 2 - CONTRACT RIGHTS
During the quarter ended June 30, 1996, approximately $9.4 million, which was
withheld from the Contract Rights Securitization net proceeds as reserves for
certain representations and warrantees made by the Company, were returned to the
Company.
<PAGE>
Of the remaining Contract Rights, one tenant purchased their leased property
from the Company during the quarter ended June 30, 1996, as permitted under the
terms of their lease for $1.7 million.
NOTE 3 - DIVIDENDS
On April 12, 1996 and May 31, 1996, dividends of $32.5 million and $140 million,
or $3.25 per share and $14.00 per share, respectively, were paid to all
shareholders of record as of April 3, 1996 and May 20, 1996, respectively.
Additionally, on July 30, 1996 the Company declared a dividend of $35 million,
or $3.50 per share paid on August 9, 1996 and payable to all shareholders of
record as of August 2, 1996.
NOTE 4 - REVALUATION OF ASSETS AND LIABILITIES
The increase in Net Assets in Liquidation resulting from revaluation of assets
and liabilities for the three and six month periods ended June 30, 1996 and 1995
is as follows:
<TABLE>
<CAPTION>
(000's)
Three Month Period Six Month Period
Ended June 30, Ended June 30,
1996 1995 1996 1995
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Increase in estimated net
realizable value of assets .... $ 7,386 $ 4,882 $ 8,844 $ 5,338
Decrease (increase) in
estimated costs of liquidation 238 43 238 (2,018)
Return of overpayments and
bankruptcy settlements ........ 3,995 1,397 3,995 10,287
Decrease in estimated tax
liability ..................... -- -- -- 1,000
-------- -------- -------- --------
$ 11,619 $ 6,322 $ 13,077 $ 14,607
======== ======== ======== ========
</TABLE>
<PAGE>
During the quarter ended June 30, 1996, the Company continued to review the
status of resolved and unresolved claims against Integrated. Through various
settlements reached between the Company, one of its wholly owned indirect
subsidiaries and various lenders, all claims relating to $4 million of capital
contribution obligations of the subsidiary which were guaranteed by Integrated
have been dismissed. It was concluded that the claims made on behalf of the
guarantees have been fully satisfied under the terms of the Plan. As such, Net
Assets in Liquidation have been increased by approximately $4 million.
In 1990, Integrated sold the majority of its core financial services businesses
(including its insurance subsidiary Integrated Resources Life Co. ("Life")) to
Broad, Inc. In connection with the sale, certain cash in Life was restricted by
order of the Iowa Insurance Commissioner from being distributed to Integrated.
Approval for distribution was contingent, in part, upon the resolution of
various contingent liabilities, including contingent claims relating to state
guarantee funds for failed insurance companies. The right to this remaining
receivable from Life was transferred to an indirect wholly owned subsidiary of
Presidio, in connection with Presidio's purchase of Integrated's estate in
November 1994. On July 1, 1996, the Iowa Insurance Commissioner concluded that
all contingent liabilities had been satisfied, and approved the transfer of all
remaining cash from Life to the Company. As a result, the Company received
approximately $13.4 million on July 2, 1996. Since the Company previously
estimated that approximately $7.5 million would be realized upon satisfaction of
all liabilities, Net Assets in Liquidation was increased by $5.9 million at June
30, 1996.
NOTE 5 - LITIGATION
On May 6, 1996, the securities litigation expert assigned to evaluate a proposed
settlement in Mark Erwin, Trustee, et. al. v. Resources High Equity, Inc., et.
al. (The "HEP Action"), submitted a report stating that he was unable to
conclude that the revised settlement as proposed is fair, reasonable and
adequate, and recommended that the settlement be revised and restructured in
certain respects. A hearing on the expert's report and preliminary approval of
the revised settlement occurred on May 28, 1996.
At this hearing, the Court ordered the parties to brief certain valuation
issues, the requisite consents required from limited partners to approve the
Exchange and the applicability of exemptions from the California securities law.
Thereafter, in response to the expert's report, the proposed settlement was
further revised to require independent appraisals of all assets of the HEP
Partnerships.
A hearing on the issues the Court had ordered the parties to brief was held on
July 9, 1996. On July 18, 1996, the Court preliminarily approved the proposed,
revised settlement of the HEP Action, and made a preliminary finding that the
proposed revised settlement is fair, adequate and reasonable to the class, and
that a settlement class should be conditionally certified. The Court also set a
hearing for August 19, 1996 to settle the form and method of notice to limited
partners regarding the proposed, revised settlement.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND LIQUIDATION ACTIVITIES
The following section includes a discussion and analysis of financial condition
and liquidation activities of the Company for the three and six periods ended
June 30, 1996.
Liquidity and Capital Resources
The most significant sale to date was achieved on March 28, 1996. The Company
sold 117 of its 123 Contract Rights in a private securitization transaction
yielding net proceeds of approximately $205 million.
The Company's primary objectives are to liquidate its assets in the shortest
time period possible while realizing the maximum values for such assets and
reduction of operating costs. Although the Company considers its assumptions and
estimates as to the values and timing of such liquidations to be reasonable, the
period of time to liquidate the assets and distribute the proceeds of such
assets is subject to significant business, economic and competitive
uncertainties and contingencies, many of which are beyond the Company's control.
Cash available for distributions, defined as cash and cash equivalents less
restricted cash, decreased by $154 million for the quarter ended June 30, 1996,
primarily due to dividends paid of $173 million offset by the return of certain
escrowed reserves maintained on the securitization of the Contract Rights of
$9.4 million, and an increase in operating cash flow in the quarter.
Restricted cash at June 30, 1996 was $23.8 million and is primarily comprised of
reserves for bankruptcy claims of $6.2 million and deposits for escrow accounts
as security for indemnification of certain former officers and directors of
Integrated and the Class A Directors of Presidio of $15.7 million (see A) and B)
below).
A) The indemnity for the former officers and directors of Integrated
("Qualified Indemnity") is collateralized by cash and all the stock and
partnership interests in the Company's non-U.S. subsidiaries under the
Indemnification Agreements (the "Indemnification Agreements"). All
distributions made by the Company are limited by a requirement that the
Company have certain minimum net assets after distribution to discharge
any pending and expected Qualified Indemnity obligations. The balance
in the Qualified Indemnity escrow account at June 30, 1996 was $10.8
million.
Presidio's ability to make distributions to stockholders remains
limited in accordance with the terms of the indemnification obligations
of the former officers and directors of Integrated and its subsidiaries
under the Indemnification Agreements. Presidio has no basis for
believing that any of those indemnification obligations will be
material, and to date, no claim for such indemnification has been made.
However, pursuant to the terms of the Indemnification Agreements,
Presidio is required to notify beneficiaries thereunder of proposed
dividends and certain other proposed transfers of cash made by certain
subsidiaries of Presidio to Presidio, and by Presidio to its
shareholders, and to retain the value of certain collateral granted as
security for such indemnification obligations. Presidio provided notice
to the beneficiaries of the Indemnification Agreements prior to
distribution of all dividends paid and declared during the first and
second quarters ended March 31, 1996 and June 30, 1996, respectively.
<PAGE>
B) The Plan also provided for indemnification of the Class A Directors of
Presidio. The indemnification amounts were secured by an initial escrow
deposit which was made on the Consummation Date. Presidio is also
required to make quarterly escrow deposits equal to the greater of (i)
$750,000, or (ii) 1% of any amounts distributed to shareholders of
Presidio, for additional indemnification security. In accordance
therewith, Presidio deposited $1,500,000 in the first two quarters of
1996. The escrowed amounts will not be available for distribution to
shareholders until the indemnification agreement expires. The balance
in the Class A Directors escrow account at June 30, 1996 was $4.9
million.
Presidio believes that cash on hand, revenues generated from interests in
businesses that continue to operate and proceeds from selling businesses and
other assets will be sufficient to support the Company's operations and meet its
obligations. The Company had positive net operating cash flow of $20.8 and $26.3
million for the three and six month periods ended June 30, 1996, respectively.
<PAGE>
Liquidation Activities
The Company's cash and cash equivalents decreased by approximately $153.4 and
$19.0 million for the three and six month period ended June 30, 1996,
respectively, as compared to decreases of $65.9 and $69.0 million for the same
periods of the prior year. The components of the change in cash and cash
equivalents, are as follows:
<TABLE>
<CAPTION>
(Millions)
(unaudited) (unaudited)
Three Month Period Six Month Period
June 30, June 30,
1996 1995 1996 1995
-------- ------- -------- --------
<S> <C> <C> <C> <C>
Cash Inflows
Contract Rights Securitization Proceeds, net ....................... $ -- $ -- $ 205.1 $ --
Operating Cash Inflows ............................................. 22.1 18.0 33.6 37.5
Interest income .................................................... 2.4 2.0 3.4 4.5
-------- ------- -------- --------
Total Cash Inflows ............................................ 24.5 20.0 242.1 42.0
-------- ------- -------- --------
Cash Outflows
Dividends paid ..................................................... 172.7 75.0 202.8 75.0
Loans to Affiliates ................................................ -- -- 31.5 --
Legal and other expenses - Contract Rights ......................... 1.5 -- 16.1 --
Legal, accounting and consulting fees .............................. 1.4 3.7 3.3 5.9
Miscellaneous general and administrative costs ..................... 1.7 3.9 6.8 7.7
Bankruptcy claims paid ............................................. 0.5 3.2 0.5 20.3
Steinhardt Management Co. ..........................................
expense reimbursement ......................................... 0.1 0.1 0.1 2.1
-------- ------- -------- --------
Total Cash Outflows ................................................ 177.9 85.9 261.1 111.0
-------- ------- -------- --------
Increase (Decrease) in cash and cash equivalents ................... (153.4) (65.9) (19.0) (69.0)
Cash and cash equivalents, beginning of period ..................... 255.0 170.8 120.6 173.9
-------- ------- ------- --------
Cash and cash equivalents, end of period ........................... $ 101.6 $ 104.9 $ 101.6 $ 104.9
======== ======== ======== ========
</TABLE>
On April 12, 1996 and May 31, 1996, dividends of $32.5 million and $140 million,
or $3.25 per share and $14.00 per share, respectively were paid to all
shareholders of record as of April 3, 1996 and May 20, 1996, respectively.
Dividends of $30 million, or $3.00 per share, was paid in the first quarter of
1996. Additionally, on July 30, 1996 the Company declared a dividend of $35
million, or $3.50 per share paid on August 9, 1996 and payable to all
shareholders of record as of August 2, 1996.
<PAGE>
Current Operations
Operating cash inflows from period to period are not comparable due to the
timing of liquidation activities.
Interest income increased in the quarter ended June 30, 1996 as compared to the
same period of the prior year due to increased cash balances resulting from
proceeds realized from the securitization of the Contract Rights. Interest
income decreased for the six months ended June 30, 1996 as compared with the
same period of the prior year due to increased distributions made to
shareholders in 1996.
There were payments made during the second quarter in connection with the
resolution of remaining disputed bankruptcy claims of $0.5 million.
Legal, accounting and consulting fees decreased primarily due to less outside
consultants needed in the current period due to continued liquidating activites.
Miscellaneous general and administrative costs decreased for the three and six
month periods ended June 30, 1996 as compared to the same period of the prior
year due to decreased office expenses incurred in 1996.
Contract Rights
In May 1995, Presidio entered into a series of Hedges through the short sales of
ten-year U.S. government Notes maturing in February and March 2005. These Notes
had an aggregate notional value of $225 million, and were designed to reduce the
impact of interest rate fluctuations on the projected proceeds from future
Contract Right transactions. In March 1996 the Company settled its position with
regard to the Hedges realizing a loss of $2.6 million.
In a private securitization transaction completed on March 28, 1996, the Company
sold 117 of the 123 Contract Rights owned directly or indirectly by the Company.
Such securitized transaction, which was unanimously approved by Presidio's Board
of Directors, yielded proceeds before expenses and reserves of approximately
$233 million, approximately $205 million of which has been distributed to
Presidio or one of its subsidiaries.
The securitization certificates that were sold are secured by substantially all
of the payment stream from the primary term of the related Contract Rights. The
certificates sold in the securitization are not backed by the Company. Most of
the remaining payment stream, which is effectively subordinated to the
certificates sold in the securitization, will be used to make payment to the
holder of another certificate, (the "T-Two Holder") 99% of which was sold to a
newly formed company, T-Two Holding, LLC ("the LLC"), an entity owned by certain
affiliates of Presidio (the "Affiliates"). These Affiliates are controlled by
the Chairman of the Board and the President of Presidio. On the Closing Date
Presidio made a $31.5 million recourse loan to the Affiliates; the proceeds of
which were used to purchase the Affiliates interests in the LLC. This loan
accrues interest at 25% per annum, and is reflected in the Company's Notes and
Receivables balance at June 30, 1996. As of June 30, 1996 interest accrued on
the loan is approximately $2.1 million. The LLC will conduct a rights offering
directed to the Company's shareholders as soon as practicable, which the Company
believes may not occur until early 1997, enabling the Company's shareholders to
acquire all of the LLC. The proceeds of such rights offering will be used in
part by the LLC to repurchase the membership interests initially acquired by the
Affiliates, who will in turn, be obligated at that time to repay the $31.5
million Presidio loan plus accrued interest.
<PAGE>
During the quarter ended June 30, 1996, approximately $9.4 million, which was
withheld from the Contract Rights Securitization net proceeds as reserves for
certain representations and warrantees made by the Company, were returned to the
Company.
Of the remaining Contract Rights, one tenant purchased their leased property
from the Company during the quarter ended June 30, 1996, as permitted under the
terms of their lease for $1.7 million.
HEP Action
On May 6, 1996, the securities litigation expert assigned to evaluate a proposed
settlement in Mark Erwin, Trustee, et. al. v. Resources High Equity, Inc., et.
al. (The "HEP Action"), submitted a report stating that he was unable to
conclude that the revised settlement as proposed is fair, reasonable and
adequate, and recommended that the settlement be revised and restructured in
certain respects. A hearing on the expert's report and preliminary approval of
the revised settlement occurred on May 28, 1996.
At this hearing, the Court ordered the parties to brief certain valuation
issues, the requisite consents required from limited partners to approve the
Exchange and the applicability of exemptions from the California securities law.
Thereafter, in response to the expert's report, the proposed settlement was
further revised to require independent appraisals of all assets of the HEP
Partnerships.
A hearing on the issues the Court had ordered the parties to brief was held on
July 9, 1996. On July 18, 1996, the Court preliminarily approved the proposed,
revised settlement of the HEP Action, and made a preliminary finding that the
proposed revised settlement is fair, adequate and reasonable to the class, and
that a settlement class should be conditionally certified. The Court also set a
hearing for August 19, 1996 to settle the form and method of notice to limited
partners regarding the proposed, revised settlement.
Wrap Mortgage
On June 25, 1996 certain direct and indirect wholly owned subsidiaries of the
Company sold a wraparound mortgage position and general partnership interest for
a sales price of approximately $1.7 million. The wraparound mortgage was sold
subject to the buyer assuming the obligation under the underlying first
mortgage.
Limited Partnership Interests
During the quarter ended June 30, 1996, Resources Funding Corp. ("RFC"), a
wholly owned indirect subsidiary of the Company received $1.4 million under the
confirmed Chapter 11 plan of reorganization of Congrecare Coral Oaks Partners
Ltd. ("Investor Partnership"), a limited partnership in which RFC is the
managing partner. This payment was in respect of RFC's unsecured claim against
the Investor Partnership. The claim grew out of an agreement entered into by and
among RFC and the Investor Partnership, among others, dated January 28, 1988
pursuant to which RFC agreed to obtain letters of credit on behalf of the
Investor Partnership for its operating deficit and working capital needs. These
letters of credit were drawn down by the Investor Partnership. RFC was never
reimbursed for the draws under the letters of credit. On February 16, 1996, the
Investor Partnership filed for protection under Chapter 11 of the United States
Bankruptcy Code in order to implement a settlement it had reached with its
primary secured lender. RFC filed a claim in the bankruptcy court proceedings
for the amount drawn down on the letters of credit and the interest thereon as
well as related costs and expenses. The $1.4 million received by RFC represents
the distribution made by the Investor Partnership under its Chapter 11 plan on
account of such claim.
<PAGE>
During the quarter ended June 30, 1996, the Company continued to review the
status of resolved and unresolved claims against Integrated. Through various
settlements reached between the Company and one of its wholly owned indirect
subsidiaries and various lenders, all claims relating to $4 million of capital
contribution obligations of the subsidiary which were guaranteed by Integrated
been dismissed. It was concluded that the claims made on behalf of the
guarantees have been fully satisfied under the terms of the Plan. As such, Net
Assets in Liquidation have been increased by approximately $4 million as a
result of the dismissal of the obligations.
IR Life Co.
In 1990, Integrated sold the majority of its core financial services businesses
(including its insurance subsidiary Integrated Resources Life Co. ("Life")) to
Broad, Inc. In connection with the sale, certain cash in Life was restricted by
order of the Iowa Insurance Commissioner from being distributed to Integrated.
Approval for distribution was contingent, in part, upon the resolution of
various contingent liabilities, including contingent claims relating to state
guarantee funds for failed insurance companies. The right to this remaining
receivable from Life was transferred to an indirect wholly owned subsidiary of
Presidio, in connection with Presidio's purchase of Integrated's estate in
November 1994. On July 1, 1996, the Iowa Insurance Commissioner concluded that
all contingent liabilities had been satisfied, and approved the transfer of all
remaining cash from Life to the Company. As a result, the Company received
approximately $13.4 million on July 2, 1996. Since the Company previously
estimated that approximately $7.5 million would be realized upon satisfaction of
all liabilities, Net Assets in Liquidation was increased by $5.9 million at June
30, 1996.
Other Real Estate
During the quarter ended June 30, 1996, the Company received $2.3 million from
Fillmore Center Project Corporation ("FCPC") in which the Company owned 86% of
the stock. The proceeds, net of legal expenses, represent a portion of a $3
million settlement payment received by FCPC in connection with the foreclosure
of its principal assets.
<PAGE>
PRESIDIO CAPITAL CORP. AND SUBSIDIARIES
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
- ------- -----------------
The following information should be read in conjunction with Item 3. "Legal
Proceedings" of the Company's December 31, 1995 Form 10-K.
Mark Erwin, Trustee, et al v. Resources High Equity, Inc., et al (the "HEP
Action")
- --------------------------------------------------------------------------------
Reference is made to Note 5 of the Consolidated Financial Statements in Part I,
Item 1, Financial Statements.
Item 6. Exhibits and Reports on Form 8-K
- ------- --------------------------------
(a) Not applicable
(b) The Company was not required to file any reports on Form 8-K
during the quarter ended June 30, 1996.
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.
PRESIDIO CAPITAL CORP. (Registrant)
By: /s/ Joseph M. Jacobs
------------------------------------
Joseph M. Jacobs
Chief Executive Officer and President
By: /s/ Jay L. Maymudes
------------------------------------
Jay L. Maymudes
Vice President, Treasurer and Chief
Financial Officer
Date: August 14, 1996
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<LEGEND>
The schedule contains summary information extracted from the financial
statements of the June 30, 1996 Form 10-Q of Presidio Capital Corp. and is
qualified in its entirety by reference to such financial statements.
[/LEGEND]
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 101,561
<SECURITIES> 29,698
<RECEIVABLES> 134,130
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 5,098
<DEPRECIATION> 0
<TOTAL-ASSETS> 270,487
<CURRENT-LIABILITIES> 60,600
<BONDS> 900
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 270,487
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
