Press Release
March 7, 2001
SCOTTSDALE, AZ -- The FINOVA Group Inc. (NYSE: FNV) announced March 5 that its board of directors has elected board
member G. Robert ``Bull'' Durham as Chairman and has elected General Counsel William J. Hallinan to the additional
positions of President and Chief Executive Officer. FINOVA also announced that Matthew M. Breyne has resigned as
the company's President and Chief Executive Officer. John W. Teets has retired as Chairman, but will remain on
the board of which he has been a member since March 1992.
``We are entering a new era for FINOVA,'' said Mr. Durham. ``The board of directors, Berkadia, FINOVA's management
and employees are committed to completing the reorganization process with a successful outcome for all. All of
us at FINOVA thank Matt Breyne for his many years of dedicated service and leadership. We also thank John Teets
for his efforts in helping to bring together exceptionally strong financial partners for FINOVA and look forward
to working with him as a continuing board member.''
Mr. Durham has been a member of FINOVA's board since its spin-off from The DIAL Corporation in March 1992. He formerly
served as Chairman, President and Chief Executive Officer of Walter Industries and Phelps Dodge Corporation.
Mr. Hallinan has served FINOVA as Senior Vice President, General Counsel and Secretary since 1992. He formerly
served as Vice President, Associate General Counsel of FINOVA's former parent company, The Dial Corporation.
On February 27, 2001, The FINOVA Group Inc., Berkshire Hathaway Inc. and Leucadia National Corporation announced
that they had entered into an agreement to provide FINOVA with a $6 billion loan in connection with a restructuring
of all outstanding bank debt and publicly traded debt securities of FINOVA Capital Corporation. The restructuring
will be accomplished pursuant to bankruptcy proceedings under Chapter 11 of the United States Bankruptcy Code.
The FINOVA Group Inc., through its principal operating subsidiary, FINOVA Capital Corporation, is a financial services
company focused on providing a broad range of capital solutions primarily to midsize business. FINOVA is headquartered
in Scottsdale, Ariz., with business development offices throughout the U.S. and London, U.K., and Toronto, Canada.
For more information, visit the company's website at www.finova.com.
This news release contains forward-looking statements such as predictions or forecasts. FINOVA assumes no obligation
to update those statements to reflect actual results, changes in assumptions or other factors. The forward-looking
statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results
to differ materially from those projected. Those factors include FINOVA's ability to address its financing requirements
in light of its existing debt obligations and market conditions; pending and potential litigation related to charges
to earnings; the results of efforts to implement FINOVA's business strategy, including the ability to complete
a debt restructuring and the transaction noted above; the ability to attract and retain key personnel and customers;
conditions that adversely impact FINOVA's borrowers and their ability to meet their obligations to FINOVA; actual
results in connection with continuing or discontinued operations; the adequacy of FINOVA's loan loss reserves and
other risks detailed in FINOVA's SEC reports, including page 15 of FINOVA's 10-K for 1999.
SOURCE: The FINOVA Group Inc.