"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.

The company's largest creditors include: Wilmington Trust, which is the trustee of more than $4.4 billion worth of Finova's publicly held debt securities; Bank of New York, which holds $980 million; Bank of America, $295 million; Bank One, $217.5 million; Chase Manhattan Bank, $262.5 million; Bank Nova Scotia, $192.5 million; Barclay's Bank PLC, $125 million; and Dresdner Bank, $157.5 million.

The restructuring plan, offered by a partnership formed by Leucadi National Corp. and investor Warren Buffett's Berkshire Hathaway Inc., is more on the order of an orderly liquidation and not a plan to turn the company around. The partnership, called Berkadia LLC, has offered a $6 billion loan, which would be used to pay off creditors. The remaining $6 billion in debt would be paid off with newly issued 10-year notes that would be subordinated to Berkadia's loan. In exchange for its loan, Berkadia would get 51% of Finova's common stock, control of the board of directors and a 10-year contract to manage the firm.

Any reorganization plan requires approval from the bankruptcy court and at least two-thirds of the company's creditors.

Market analysts expect Finova's creditors to challenge the proposed reorganization plan with one that would provide a greater return on their debt. If a better deal can't be struck, either with Berkadia or another company such as GE Capital, look for the creditors to push for liquidation without the presence of Berkadia.

Finova's slide began a year ago when the company announced a $70 million loan write-down and the departure of founder and company icon Sam Eichenfield. The company has warned that there could be additional losses for the fourth quarter or year-end, which the company has not yet filed but has until March 31 to do so.

Finova offers a variety of lending options to mostly midsize businesses, including mezzanine capital, real estate loans, resort financing and specialty real estate lending.