"It will be business as usual at Finova," says William Hallinan, who is the newly appointed president/CEO. "The company has positive cash flow and $1 billion in cash on hand to continue funding operations throughout the reorganization period."
The stock closed at $2.28 on Wednesday, up 20 cents after the filing. On Thursday, the stock rose nearly 18% or triple its average level of activity, with nearly three million shares changing hands. The stock closed Thursday at $2.68.
The bankruptcy is the seventh largest in US history and the largest in Delaware, where the company, like so many others, is incorporated. Finova's collapse could rippled through the entire lending community as other banks and lenders that had held some of the company's unsecured debt see only a portion of those debts paid off, say market experts.
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