In The Marketplace

Morgan Stanley of New York has announced that it is selling its aircraft leasing business to European private-equity firm Terra Firma for $2.5 billion in cash. Morgan Stanley, which had recorded a $1 billion charge last year in writing down the value of the unit, disclosed that it will reduce that amount by between $500 million and $550 million. Although the unit had revenue of $1.7 billion in the fourth quarter and $5.2 billion for 2005, it did not fit into the company's business strategy. Terra Firma, based in London, owns East Surrey Holdings, a major gas supplier in Northern Ireland, Waste Recycling Group and Odeon Cinemas. The deal is being funded by equity and debt provided by J.P. Morgan Chase & Co.

Travelers Financial Group of Vancouver, British Columbia, has named Roberto Cortese as senior vice president and chief operating officer for Travelers Financial Corporation, the group's equipment leasing member company. In this newly created position, he will be responsible for all operational, strategic, marketing and tactical programs for the asset-based equipment leasing business of Travelers Financial Corporation. Cortese previously served as vice president and general manager for sales, marketing and asset management for De Lage Landen Financial Services Canada.

AIG Commercial Equipment Finance, Inc. of Plano, TX, has named Michael C. Zaman as vice president-capital markets. He will be responsible for the acquisition and syndication of middle market loan and lease transactions sourced from a wide variety of intermediaries including banks and bank leasing companies, independent and captive finance companies, attorneys, sponsors and brokers. Most recently Zaman was director of global lease finance for UBS Investment Bank.

Cobra Capital wins major initial victory in its trademark infringement suit against LaSalle: The District Court for the Northern District of Illinois has denied the motion of defendant, LaSalle Bank Corporation and its affiliates to dismiss a trademark infringement case filed by Cobra Capital, a small finance and equipment leasing company. The court didn't simply deny the defendant's motion to dismiss, however; the judge also ordered LaSalle to pay Cobra Capital's attorneys' fees, finding that the defendant had wasted the time of both the court and plaintiff's counsel. “Under the circumstances,” the court stated, “at least after being warned, not to have withdrawn its motion is a violation of Fed. R. Civ. P. 11.” Cobra Capital LLC v. LaSalle Bank Corporation, LaSalle Bank N.A., and LaSalle National Leasing Corporation, No. 1:05-cv-02419 (Dec. 6, 2005).

Cobra Capital, a small Oak Brook, IL based company which competes in similar markets as LaSalle and its affiliates filed a trademark infringement lawsuit alleging that LaSalle infringed on Cobra Capital's registered trademark, “Making impossible possible” with LaSalle's subsequent use of a nearly identical new global tagline, “Making more possible.” The complaint alleges that Cobra Capital's trademark was awarded to its founder, Dale R. Kluga by the U.S. Patent and Trademark Office, almost 2 years before LaSalle released its global tagline. Kluga and his partner, Dexter Tong, are both former ABN LaSalle employees as Kluga was senior vice president and founder of LaSalle Bank's leasing company before leaving to start his first finance company 9 years earlier in 1996. Tong was formerly senior vice president and assistant treasurer of ABN AMRO, Inc. until 2001 when he received his final equity payout from ABN AMRO's acquisition of The Chicago Corporation.

LeaseSmart, Inc. of Toronto has announced plans to expand into heavy equipment and construction financing. The commercial loan company will now be offering heavy equipment financing to clients for capital equipment, hardware and in some cases software. The company noted that because many business owners currently don't realize “soft costs” (items such as training, installation and consultation) can be leased, LeaseSmart will also be offering this service.

Morgan Stanley of New York has announced that it is selling its aircraft leasing business to European private-equity firm Terra Firma for $2.5 billion in cash. Morgan Stanley, which had recorded a $1 billion charge last year in writing down the value of the unit, disclosed that it will reduce that amount by between $500 million and $550 million. Although the unit had revenue of $1.7 billion in the fourth quarter and $5.2 billion for 2005, it did not fit into the company's business strategy. Terra Firma, based in London, owns East Surrey Holdings, a major gas supplier in Northern Ireland, Waste Recycling Group and Odeon Cinemas. The deal is being funded by equity and debt provided by J.P. Morgan Chase & Co.

Travelers Financial Group of Vancouver, British Columbia, has named Roberto Cortese as senior vice president and chief operating officer for Travelers Financial Corporation, the group's equipment leasing member company. In this newly created position, he will be responsible for all operational, strategic, marketing and tactical programs for the asset-based equipment leasing business of Travelers Financial Corporation. Cortese previously served as vice president and general manager for sales, marketing and asset management for De Lage Landen Financial Services Canada.

AIG Commercial Equipment Finance, Inc. of Plano, TX, has named Michael C. Zaman as vice president-capital markets. He will be responsible for the acquisition and syndication of middle market loan and lease transactions sourced from a wide variety of intermediaries including banks and bank leasing companies, independent and captive finance companies, attorneys, sponsors and brokers. Most recently Zaman was director of global lease finance for UBS Investment Bank.