IN THE MARKETPLACE

Key Equipment Finance of Superior, CO has named Philip G. Schultz senior vice president of global business development and strategic planning. He will lead the organization's merger and acquisition activities and help guide strategic planning processes and new program development. Schultz fills the position formerly held by Paul Frechette who was promoted to president and chief operating officer, commercial leasing services, Key Equipment Finance. Previously, Schultz served as senior vice president for Key Equipment Finance's government finance and Canadian business operations.

GreatAmerica Leasing Corporation of Cedar Rapids, IA has appointed David Pohlman as senior vice president of growth strategies. He will be responsible for an overall expansion strategy, which will include broadening the field sales force presence, redefining existing marketing tools and implementing plans to increase intimacy with customers in the niche markets GreatAmerica serves. Pohlman's career has been focused on the small ticket leasing industry and he served most recently as senior vice president and general manager of vendor services at US Bancorp.

Swift Transportation Co. Inc. of Phoenix, AZ has announced it has completed its acquisition of certain assets of Merit Distribution Services Inc. for $76 million, including $26 million for additional revenue equipment and other assets not originally anticipated. Merit's fleet consists of 825 tractors, including 140 owner operators, and 1,400 trailers of which 455 tractors and 1,100 trailers are leased. Merit's primary business consists of a series of dedicated regional trucking fleets that serve Wal-Mart's grocery distribution centers and retail outlets.

Fitch Ratings of New York announced that it has placed all DVI, Inc. sponsored medical equipment and healthcare receivable asset-backed transactions on Rating Watch Negative. This action reflects the potential for increased operational and performance risk as a result of the same factors that contributed to Fitch's downgrade of DVI's senior unsecured rating to 'CCC' from 'B+'. Fitch stated that it is concerned that reduced financial flexibility resulting from the resignation of DVI's outside auditors and the Securities and Exchange Commission's subsequent rejection of DVI's most recent quarterly financial statements could ultimately pressure ABS collateral performance. While heavily discounted in Fitch's analysis, DVI's ability to continue to support the medical equipment securitizations through substitutions and servicer advances may be challenged, adding to the potential for performance volatility. Further, DVI's announcement that it has hired UBS Securities LLC to assist in conducting a review of the strategic alternatives available could also result in additional operational volatility. Fitch's action affects 60 classes ($1.8 billion) of nine DVI medical equipment transactions and five classes ($50.3 million) of two DVI Business Credit healthcare receivable transactions.

Air Canada of Montreal has announced that it has reached a tentative agreement with General Electric Capital Aviation Services (GECAS) on the restructuring of all GECAS financed and managed aircraft as well as on new exit and aircraft financing totaling approximately CDN $1.8 billion. The restructuring of the leases involves a combination of lease rate reductions, lease payment deferrals, early lease terminations and the cancellation of future aircraft delivery commitments. As part of the tentative agreement, GECAS has agreed to extend to Air Canada as debt financing for emergence from bankruptcy a secured loan of US $425 million to be secured by a fixed and floating charge over the unencumbered assets of Air Canada. This will largely constitute the same collateral pool against which its current DIP financing is secured. This new loan would come into effect upon Air Canada's exit from bankruptcy and would be used for general corporate purposes to improve the company's cash position. The loan would also form an important portion of the company's previously announced exit debt and equity financing requirements of approximately CDN $1.35 billion.

Fulbright & Jaworski LLP of New York has announced the expansion of its public finance and asset finance practices with the addition of five attorneys who were previously with the New York office of O'Melveny & Myers LLP. Among these five attorneys is Stan Ladner who will join the firm as a partner. He concentrates his practice on public finance matters, leasing transactions and financial products. Ladner was the former head of O'Melveny's New York office's leasing practice and has substantial experience in leasing, both domestic and cross-border, with an emphasis on transportation and utility transactions. He also has substantial experience in the use and development of financial products, including caps, collars, float contracts, swaps, forward delivery arrangements, guaranteed investment arrangements, indexed notes, municipal call rights, options and repurchase agreements.

Smith Debnam Narron Wyche Saintsing & Myers, LLP of Raleigh, NC has announced that Byron L. Saintsing, a partner and head of its Construction and Leasing Practice Group, has become the firm's newest named partner. A partner since 1993, Saintsing leads a practice group whose attorneys concentrate on matters of construction law, commercial and business litigation, representation of equipment lessors and creditor bankruptcy.

Stroock & Stroock & Lavan LLP of New York has announced that Jeffrey Stern has joined the law firm as a partner. He was previously with the firm of Thatcher Proffit & Wood, where he practiced in its structured finance, global finance and Latin American groups. Stern has broad experience in structured finance, with a particular focus on collateralized debt obligations (CDOs), credit default swaps and other synthetic risk-transfer structures, 'exotic' ABS classes, as well as commercial paper conduits. His recent focus has been on CDOs secured by new asset classes and synthetic portfolio securitizations. Stern has also worked extensively in the field of Latin American securitization, with a particular focus on securitization transactions in Mexico.

Key Equipment Finance of Superior, CO has named Philip G. Schultz senior vice president of global business development and strategic planning. He will lead the organization's merger and acquisition activities and help guide strategic planning processes and new program development. Schultz fills the position formerly held by Paul Frechette who was promoted to president and chief operating officer, commercial leasing services, Key Equipment Finance. Previously, Schultz served as senior vice president for Key Equipment Finance's government finance and Canadian business operations.

GreatAmerica Leasing Corporation of Cedar Rapids, IA has appointed David Pohlman as senior vice president of growth strategies. He will be responsible for an overall expansion strategy, which will include broadening the field sales force presence, redefining existing marketing tools and implementing plans to increase intimacy with customers in the niche markets GreatAmerica serves. Pohlman's career has been focused on the small ticket leasing industry and he served most recently as senior vice president and general manager of vendor services at US Bancorp.

Swift Transportation Co. Inc. of Phoenix, AZ has announced it has completed its acquisition of certain assets of Merit Distribution Services Inc. for $76 million, including $26 million for additional revenue equipment and other assets not originally anticipated. Merit's fleet consists of 825 tractors, including 140 owner operators, and 1,400 trailers of which 455 tractors and 1,100 trailers are leased. Merit's primary business consists of a series of dedicated regional trucking fleets that serve Wal-Mart's grocery distribution centers and retail outlets.

Fitch Ratings of New York announced that it has placed all DVI, Inc. sponsored medical equipment and healthcare receivable asset-backed transactions on Rating Watch Negative. This action reflects the potential for increased operational and performance risk as a result of the same factors that contributed to Fitch's downgrade of DVI's senior unsecured rating to 'CCC' from 'B+'. Fitch stated that it is concerned that reduced financial flexibility resulting from the resignation of DVI's outside auditors and the Securities and Exchange Commission's subsequent rejection of DVI's most recent quarterly financial statements could ultimately pressure ABS collateral performance. While heavily discounted in Fitch's analysis, DVI's ability to continue to support the medical equipment securitizations through substitutions and servicer advances may be challenged, adding to the potential for performance volatility. Further, DVI's announcement that it has hired UBS Securities LLC to assist in conducting a review of the strategic alternatives available could also result in additional operational volatility. Fitch's action affects 60 classes ($1.8 billion) of nine DVI medical equipment transactions and five classes ($50.3 million) of two DVI Business Credit healthcare receivable transactions.

Air Canada of Montreal has announced that it has reached a tentative agreement with General Electric Capital Aviation Services (GECAS) on the restructuring of all GECAS financed and managed aircraft as well as on new exit and aircraft financing totaling approximately CDN $1.8 billion. The restructuring of the leases involves a combination of lease rate reductions, lease payment deferrals, early lease terminations and the cancellation of future aircraft delivery commitments. As part of the tentative agreement, GECAS has agreed to extend to Air Canada as debt financing for emergence from bankruptcy a secured loan of US $425 million to be secured by a fixed and floating charge over the unencumbered assets of Air Canada. This will largely constitute the same collateral pool against which its current DIP financing is secured. This new loan would come into effect upon Air Canada's exit from bankruptcy and would be used for general corporate purposes to improve the company's cash position. The loan would also form an important portion of the company's previously announced exit debt and equity financing requirements of approximately CDN $1.35 billion.