Form 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
|X| Quarterly Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934.
For the quarterly period ended June 30, 2001
|_| Transition Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934.
For the transition period from _______ to _______
Commission File Number 0-24175
ATEL Capital Equipment Fund VII, L.P.
(Exact name of registrant as specified in its charter)
California 94-3248318
---------- ----------
(State or other jurisdiction of (I. R. S. Employer
incorporation or organization) Identification No.)
235 Pine Street, 6th Floor, San Francisco, California 94104
(Address of principal executive offices)
Registrant's telephone number, including area code: (415) 989-8800
Indicate by a check mark whether the registrant (1) has filed all reports
required to be filed by section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes |X|
No |_|
DOCUMENTS INCORPORATED BY REFERENCE
None
1
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements.
2
ATEL CAPITAL EQUIPMENT FUND VII, L.P.
BALANCE SHEETS
JUNE 30, 2001 AND DECEMBER 31, 2000
(Unaudited)
ASSETS
2001 2000
---- ----
Cash and cash equivalents $ 880,383 $ 1,321,417
Accounts receivable, net of allowance for
doubtful accounts of none in 2001 and
$724,906 in 2000 4,757,855 6,222,311
Other assets 70,013 90,011
Investments in leases 139,126,707 149,967,007
------------------ ------------------
Total assets $144,834,958 $ 157,600,746
================== ==================
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt $38,763,000 $ 44,877,000
Non-recourse debt 12,245,704 15,452,741
Line of credit 3,500,000 -
Accounts payable:
General Partner 783,711 605,684
Other 561,220 703,761
Accrued interest payable 323,731 533,858
Unearned operating lease income 927,110 1,264,094
------------------ ------------------
Total liabilities 57,104,476 63,437,138
Partners' capital:
General Partner (1,514,601) (1,514,601)
Limited Partners 89,245,083 95,678,209
------------------ ------------------
Total partners' capital 87,730,482 94,163,608
------------------ ------------------
Total liabilities and partners' capital $144,834,958 $ 157,600,746
================== ==================
See accompanying notes.
3
ATEL CAPITAL EQUIPMENT FUND VII, L.P.
STATEMENT OF OPERATIONS
SIX AND THREE MONTH PERIODS ENDED
JUNE 30, 2001 AND 2000
(Unaudited)
Six Months Three Months
Ended June 30, Ended June 30,
-------------- --------------
2001 2000 2001 2000
---- ---- ---- ----
Revenues:
Leasing activities:
Operating leases $16,333,829 $20,792,446 $ 8,040,945 $ 10,814,256
Direct financing 543,677 610,067 264,834 412,149
Leveraged leases - 195,693 - -
(Loss) gain on sales of assets (351,040) 250,312 (270,078) (436,239)
Interest 36,770 36,938 14,378 23,730
Other 5,167 36,997 2,593 31,462
----------------- ----------------- ------------------ ------------------
16,568,403 21,922,453 8,052,672 10,845,358
Expenses:
Depreciation and amortization 10,771,879 13,252,126 5,179,501 8,747,938
Interest expense 2,159,511 2,826,516 1,049,036 1,392,121
Equipment and incentive management fees to
General Partner 689,171 878,788 362,185 337,944
Cost reimbursements to General Partner 492,543 304,605 297,166 180,755
Railcar maintenance 425,191 230,476 188,344 104,744
Other 340,215 220,198 151,016 108,930
Professional fees 103,909 76,944 49,619 57,528
----------------- ----------------- ------------------ ------------------
14,982,419 17,789,653 7,276,867 10,929,960
----------------- ----------------- ------------------ ------------------
Net income (loss) $ 1,585,984 $ 4,132,800 $ 775,805 $ (84,602)
================= ================= ================== ==================
Net income (loss):
General Partner $ 518,964 $ 604,645 $ 303,981 $ 303,981
Limited Partners 1,067,020 3,528,155 471,824 (388,583)
----------------- ----------------- ------------------ ------------------
$ 1,585,984 $ 4,132,800 $ 775,805 $ (84,602)
================= ================= ================== ==================
Net income (loss) per Limited Partnership Unit $0.07 $0.24 $0.03 ($0.03)
Weighted average number of Units outstanding 14,996,050 14,996,050 14,996,050 14,996,050
See accompanying notes.
4
ATEL CAPITAL EQUIPMENT FUND VII, L.P.
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
SIX MONTH PERIOD ENDED
JUNE 30, 2001
(Unaudited)
Limited Partners General
Units Amount Partner Total
Balance December 31, 2000 14,996,050 $95,678,209 $(1,514,601) $ 94,163,608
Distributions to partners (7,500,146) (518,964) (8,019,110)
Net income 1,067,020 518,964 1,585,984
----------------- ----------------- ------------------ ------------------
Balance June 30, 2001 14,996,050 $89,245,083 $(1,514,601) $ 87,730,482
================= ================= ================== ==================
See accompanying notes.
5
STATEMENTS OF CASH FLOWS
SIX AND THREE MONTH PERIODS ENDED
JUNE 30, 2001 AND 2000
(Unaudited)
Six Months Three Months
Ended June 30, Ended June 30,
-------------- --------------
Operating activities: 2001 2000 2001 2000
---- ---- ---- ----
Net income (loss) $ 1,585,984 $ 4,132,800 $ 775,805 $ (84,602)
Adjustments to reconcile net income (loss) to
cash provided by operating activities:
Leveraged lease income - (195,693) - -
Depreciation 10,771,879 13,252,126 5,179,501 8,747,938
Loss (gain) on sales of assets 351,040 (250,312) 270,078 436,239
Changes in operating assets and liabilities:
Accounts receivable 1,464,456 (1,786,166) 115,429 (1,904,644)
Other assets 19,998 19,998 9,999 9,999
Accounts payable, General Partner 178,027 (635,720) 508,731 323,165
Accounts payable, other (142,541) 843,510 47,104 547,244
Accrued interest expense (210,127) (283,267) (140,400) (135,180)
Unearned lease income (336,984) (109,551) (293,713) (86,406)
----------------- ----------------- ------------------ ------------------
Net cash provided by operations 13,681,732 14,987,725 6,472,534 7,853,753
----------------- ----------------- ------------------ ------------------
Investing activities:
Purchases of equipment on operating leases (1,950,111) - - -
Reduction in net investment in direct financing
leases 1,355,342 2,586,114 889,208 1,561,713
Proceeds from sales of assets 821,864 4,368,359 374,513 824,680
Purchases of equipment on direct financing
leases (492,988) - (41,066) -
Payment of initial direct costs to General Partner (16,726) - - -
----------------- ----------------- ------------------ ------------------
Net cash (used in) provided by investing
activities (282,619) 6,954,473 1,222,655 2,386,393
================= ================= ================== ==================
6
ATEL CAPITAL EQUIPMENT FUND VII, L.P.
STATEMENTS OF CASH FLOWS
(Continued)
SIX AND THREE MONTH PERIODS ENDED
JUNE 30, 2001 AND 2000
(Unaudited)
Six Months Three Months
Ended June 30, Ended June 30,
-------------- --------------
2001 2000 2001 2000
---- ---- ---- ----
Financing activities:
Distributions to partners (8,019,110) (8,102,696) (4,054,171) (4,053,075)
Repayments of long-term debt (8,114,000) (11,807,000) (3,174,000) (4,003,000)
Proceeds of long-term debt 2,000,000 11,700,000 2,000,000 -
Borrowings under line of credit 5,500,000 - 1,000,000 -
Repayments of borrowings under line of credit (2,000,000) (9,100,000) (2,000,000) -
Repayments of non-recourse debt (3,207,037) (3,117,957) (1,645,135) (1,721,145)
----------------- ----------------- ------------------ ------------------
Net cash used in financing activities (13,840,147) (20,427,653) (7,873,306) (9,777,220)
----------------- ----------------- ------------------ ------------------
Net (decrease) increase in cash and cash
equivalents (441,034) 1,514,545 (178,117) 462,926
Cash and cash equivalents at beginning of
period 1,321,417 1,674,372 1,058,500 2,725,991
----------------- ----------------- ------------------ ------------------
Cash and cash equivalents at end of period $ 880,383 $ 3,188,917 $ 880,383 $ 3,188,917
================= ================= ================== ==================
Supplemental disclosures of cash flow information:
Cash paid during the period for interest $ 2,369,638 $ 3,109,783 $ 1,189,436 $ 1,527,301
================= ================= ================== ==================
See accompanying notes.
7
ATEL CAPITAL EQUIPMENT FUND VII, L.P.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2001
(Unaudited)
1. Summary of significant accounting policies:
Interim financial statements:
The unaudited interim financial statements reflect all adjustments which are, in
the opinion of the general partners, necessary to a fair statement of financial
position and results of operations for the interim periods presented. All such
adjustments are of a normal recurring nature. These unaudited interim financial
statements should be read in conjunction with the most recent report on Form
10K.
2. Organization and partnership matters:
ATEL Capital Equipment Fund VII, L.P. (the Fund), was formed under the laws of
the State of California on July 17 , 1996, for the purpose of acquiring
equipment to engage in equipment leasing and sales activities.
The Partnership does not make a provision for income taxes since all income and
losses will be allocated to the Partners for inclusion in their individual tax
returns.
3. Investment in leases:
The Partnership's investment in leases consists of the following:
Depreciation
Balance Expense or Reclassi- Balance
December 31, Amortization fications or June 30,
2000 Additions of Leases Dispositions 2001
---- --------- --------- - ------------- ----
Net investment in operating
leases $131,717,168 $ 1,950,111 $ (10,675,239) $(2,896,543) $ 120,095,497
Net investment in direct
financing leases 17,087,466 492,988 (1,355,342) - 16,225,112
Assets held for sale or lease 1,233,078 - - 1,723,639 2,956,717
Reserve for losses (504,227) - - - (504,227)
Initial direct costs, net of
accumulated amortization 433,522 16,726 (96,640) - 353,608
------------------- ----------------- ----------------- ------------------ ------------------
$149,967,007 $ 2,459,825 $ (12,127,221) $(1,172,904) $ 139,126,707
=================== ================= ================= ================== ==================
8
ATEL CAPITAL EQUIPMENT FUND VII, L.P.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2001
(Unaudited)
3. Investment in leases (continued):
Property on operating leases consists of the following:
Balance Dispositions & Balance
December 31, Reclassifications June 30,
-----------------
2000 1st Quarter 2nd Quarter 2001
---- ----------- ----------- ----
Transportation $101,664,857 $ (5,900,528) $ 528,590 $ 96,292,919
Marine vessels / barges 27,276,479 (628,843) 382,500 27,030,136
Construction 23,002,563 - - 23,002,563
Manufacturing 11,801,318 (624,620) (330,230) 10,846,468
Mining 8,536,249 (1,604,082) 2,080,798 9,012,965
Office automation 9,880,540 476,716 (3,371,693) 6,985,563
Other 5,108,831 954,955 (271,005) 5,792,781
Materials handling 5,559,474 - - 5,559,474
Communications 4,387,819 - - 4,387,819
----------------- ----------------- ------------------ ------------------
197,218,130 (7,326,402) (981,040) 188,910,688
Less accumulated depreciation (65,500,962) 399,606 (3,713,835) (68,815,191)
----------------- ----------------- ------------------ ------------------
$131,717,168 $ (6,926,796) $(4,694,875) $ 120,095,497
================= ================= ================== ==================
All of the property on leases was acquired in 1997, 1998, 1999 and 2001.
At June 30, 2001, the aggregate amounts of future minimum lease payments are as
follows:
Direct
Year ending Operating Financing
December 31, Leases Leases Total
------------ ------ ------ -----
2001 $12,885,649 $ 1,634,232 $14,519,881
2002 21,287,512 2,738,351 24,025,863
2003 12,805,697 2,345,686 15,151,383
2004 8,434,407 2,280,095 10,714,502
2005 5,837,657 2,235,644 8,073,301
Thereafter 2,126,026 1,701,567 3,827,593
----------------- ----------------- ------------------
$63,376,948 $12,935,575 $76,312,523
================= ================= ==================
9
ATEL CAPITAL EQUIPMENT FUND VII, L.P.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2001
(Unaudited)
4. Non-recourse debt:
Notes payable to financial institutions are due in varying monthly and quarterly
installments of principal and interest. The notes are secured by assignments of
lease payments and pledges of the assets which were purchased with the proceeds
of the particular notes. Interest rates on the notes vary from 7.40% to 8.828%.
Future minimum principal payments of non-recourse debt are as follows:
Year ending
December 31, Principal Interest Total
------------ --------- -------- -----
2001 $ 2,269,779 $ 467,435 $ 2,737,214
2002 5,761,771 799,843 6,561,614
2003 3,261,508 288,853 3,550,361
2004 298,403 67,364 365,767
2005 322,838 42,927 365,765
Thereafter 331,405 25,597 357,002
----------------- ----------------- ------------------
$12,245,704 $ 1,692,019 $13,937,723
================= ================= ==================
5. Long-term debt:
In 1998, the Partnership entered into a $65 million receivables funding program
(the Program) with a receivables financing company that issues commercial paper
rated A1 by Standard and Poors and P1 by Moody's Investor Services. Under the
Program, the receivables financing company receives a general lien against all
of the otherwise unencumbered assets of the Partnership. The Program provides
for borrowing at a variable interest rate (4.4994% at June 30, 2001).
The Program requires the General Partner to enter into various interest rate
swaps with a financial institution (also rated A1/P1) to manage interest rate
exposure associated with variable rate obligations under the Program by
effectively converting the variable rate debt to fixed rates. As of June 30,
2001, the Partnership receives or pays interest on a notional principal of
$38,763,000, based on the difference between nominal rates ranging from 5.55% to
7.58% and the variable rate under the Program. No actual borrowing or lending is
involved. The last of the swaps terminates in 2008. The differential to be paid
or received is accrued as interest rates change and is recognized currently as
an adjustment to interest expense related to the debt.
10
ATEL CAPITAL EQUIPMENT FUND VII, L.P.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2001
(Unaudited)
5. Long-term debt (continued):
Borrowings under the Program are as follows:
Original Balance Rate on
Date Amount June 30, Interest Swap
Borrowed Borrowed 2001 Agreement
-------- -------- ---- ---------
4/1/1998 $ 21,770,000 $ 6,631,000 6.220%
7/1/1998 25,000,000 6,726,000 6.155%
10/1/1998 20,000,000 10,523,000 5.550%
4/16/1999 9,000,000 3,603,000 5.890%
1/26/2000 11,700,000 9,310,000 7.580%
5/25/2001 2,000,000 1,970,000 5.790%
------------------- -----------------
$ 89,470,000 $38,763,000
=================== =================
-
The long-term debt borrowings mature from 2004 through 2008. Future minimum
principal payments of long-term debt are as follows:
Year ending
December 31, Principal Interest Total
------------ --------- -------- -----
2001 $ 5,825,000 $ 1,156,555 $ 6,981,555
2002 11,514,000 1,733,310 13,247,310
2003 7,604,000 1,146,123 8,750,123
2004 5,848,000 723,429 6,571,429
2005 4,374,000 392,050 4,766,050
Thereafter 3,598,000 339,742 3,937,742
------------------- ----------------- -----------------
$ 38,763,000 $ 5,491,209 $44,254,209
=================== ================= =================
6. Related party transactions:
The terms of the Limited Partnership Agreement provide that the General Partner
and/or Affiliates are entitled to receive certain fees for equipment management
and resale and for management of the Partnership.
The Limited Partnership Agreement allows for the reimbursement of costs incurred
by the General Partner in providing administrative services to the Partnership.
Administrative services provided include Partnership accounting, investor
relations, legal counsel and lease and equipment documentation. The General
Partner is not reimbursed for services where it is entitled to receive a
separate fee as compensation for such services, such as acquisition and
management of equipment. Reimbursable costs incurred by the General Partner are
allocated to the Partnership based upon actual time incurred by employees
working on Partnership business and an allocation of rent and other costs based
on utilization studies.
11
ATEL CAPITAL EQUIPMENT FUND VII, L.P.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2001
(Unaudited)
6. Related party transactions (continued):
Substantially all employees of the General Partner record time incurred in
performing administrative services on behalf of all of the Partnerships serviced
by the General Partner. The General Partner believes that the costs reimbursed
are the lower of (i) actual costs incurred on behalf of the Partnership or (ii)
the amount the Partnership would be required to pay independent parties for
comparable administrative services in the same geographic location and are
reimbursable in accordance with the Limited Partnership Agreement.
The General Partner and/or Affiliates earned fees, commissions and
reimbursements, pursuant to the Limited Partnership Agreement during the six
month periods ended June 30, 2001 and 2000 as follows:
2001 2000
---- ----
Incentive management fees (computed as 4% of distributions of cash from
operations, as defined in the Limited Partnership Agreement) and equipment
management fees (computed as 3.5% of gross revenues from operating leases, as
defined in the Limited Partnership Agreement plus 2% of gross revenues from full
payout leases, as defined in the Limited Partnership Agreement). $ 689,171 $ 878,788
Administrative costs reimbursed to General Partner 492,543 304,605
------------------ ------------------
$ 1,181,714 $ 1,183,393
================== ==================
7. Partner's capital:
As of June 30, 2001, 14,996,050 Units ($149,960,500) were issued and
outstanding.
First, Distributions of Cash from Operations shall be 88.5% to the Limited
Partners, 7.5% to the General Partner and 4% to the General Partner or its
affiliate designated as the recipient of the Incentive Management Fee, until the
Limited Partners have received Aggregate Distributions in an amount equal to
their Original Invested Capital, as defined, plus a 10% per annum cumulative
(compounded daily) return on their Adjusted Invested Capital, as defined in the
Limited Partnership Agreement.
Second, 85% to the Limited Partners, 7.5% to the General Partner and 7.5% to the
General Partner or its affiliate designated as the recipient of the Incentive
Management Fee.
Available Cash from Sales or Refinancing, as defined in the Limited Partnership
Agreement, shall be distributed as follows:
First, Distributions of Sales or Refinancings shall be 92.5% to the Limited
Partners and 7.5% to the General Partner, until the Limited Partners have
received Aggregate Distributions in an amount equal to their Original Invested
Capital, as defined, plus a 10% per annum cumulative (compounded daily) return
on their Adjusted Invested Capital.
Second, 85% to the Limited Partners, 7.5% to the General Partner and 7.5% to the
General Partner or its affiliate designated as the recipient of the Incentive
Management Fee.
12
ATEL CAPITAL EQUIPMENT FUND VII, L.P.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2001
(Unaudited)
8. Line of credit:
The Partnership participates with the General Partner and certain of its
Affiliates in a $62,000,000 revolving credit agreement with a group of financial
institutions which expires on April 12, 2002. The agreement includes an
acquisition facility and a warehouse facility which are used to provide bridge
financing for assets on leases. Draws on the acquisition facility by any
individual borrower are secured only by that borrower's assets, including
equipment and related leases. Borrowings on the warehouse facility are recourse
jointly to certain of the Affiliates, the Partnership and the General Partner.
The Partnership had $3,500,000 of borrowings under the agreement at June 30,
2001.
The credit agreement includes certain financial covenants applicable to each
borrower. The Partnership was in compliance with its covenants as of June 30,
2001.
9. Commitments:
As of June 30, 2001, the Partnership had no outstanding commitments to purchase
lease equipment.
13
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
Capital Resources and Liquidity
During the first and second quarters of 2001, the Partnership's primary activity
was engaging in equipment leasing activities.
The liquidity of the Partnership will vary in the future, increasing to the
extent cash flows from leases exceed expenses, and decreasing as lease assets
are acquired, as distributions are made to the limited partners and to the
extent expenses exceed cash flows from leases.
As another source of liquidity, the Partnership has contractual obligations with
a diversified group of lessees for fixed lease terms at fixed rental amounts. As
the initial lease terms expire the Partnership will re-lease or sell the
equipment. The future liquidity beyond the contractual minimum rentals will
depend on the General Partner's success in re-leasing or selling the equipment
as it comes off lease.
The Partnership participates with the General Partner and certain of its
affiliates in a $62,000,000 revolving line of credit with a group of financial
institutions. The line of credit expires on April 12, 2002.
The Partnership anticipates reinvesting a portion of lease payments from assets
owned in new leasing transactions. Such reinvestment will occur only after the
payment of all obligations, including debt service (both principal and
interest), the payment of management fees to the General Partner and providing
for cash distributions to the Limited Partners.
The Partnership currently has available adequate reserves to meet contingencies,
but in the event those reserves were found to be inadequate, the Partnership
would likely be in a position to borrow against its current portfolio to meet
such requirements. The General Partner envisions no such requirements for
operating purposes.
No commitments of capital have been or are expected to be made other than for
the acquisition of additional equipment. There were no such commitments as of
June 30, 2001.
If inflation in the general economy becomes significant, it may affect the
Partnership inasmuch as the residual (resale) values and rates on re-leases of
the Partnership's leased assets may increase as the costs of similar assets
increase. However, the Partnership's revenues from existing leases would not
increase, as such rates are generally fixed for the terms of the leases without
adjustment for inflation.
If interest rates increase significantly, the lease rates that the Partnership
can obtain on future leases will be expected to increase as the cost of capital
is a significant factor in the pricing of lease financing. Leases already in
place, for the most part, would not be affected by changes in interest rates.
Cash Flows, 2001 vs. 2000:
During the first half of 2001 and 2000, the Partnership's primary sources of
liquidity was rents from assets on operating leases.
Cash from operating activities was almost entirely from operating lease rents in
both 2001 and in 2000 for both the three and six month periods.
Sources of cash from investing activities consisted of proceeds from sales of
assets and direct financing lease rents. Proceeds from sales of lease assets
decreased significantly compared to 2000. In 2001, cash was used in investing
activities to purchase assets on operating and direct financing leases and to
pay initial direct costs to the General Partner.
14
In 2001, cash from financing sources consisted of proceeds of long-term debt and
borrowings under the line of credit. Borrowings in 2000 were used to repay
amounts due on the line of credit. Repayments of long-term debt have changed as
a result of scheduled payments. Distributions to partners did not change
significantly compared to 2000.
Results of operations, 2001 vs. 2000:
Operations in 2001 resulted in a net income of $1,585,984 (six months) and
$775,805 (three months). Operations in 2000 resulted in a net income of
$4,132,800 (six months) and a net loss of $84,602 (three months). The
Partnership's primary source of revenues is from operating leases. This is
expected to remain true in future periods. Operating lease revenues for the six
month periods decreased from $20,792,446 in 2000 to $16,333,829 in 2001. For the
three month periods, they decreased from $10,814,256 in 2000 to $8,040,945 in
2001. The decreases were the result of asset sales in 2000 and in 2001.
Depreciation expense is the single largest expense of the Partnership and is
expected to remain so in future periods. Total debt has decreased from about
$73,800,000 at June 30, 2000 to about $54,510,000 at June 30, 2001. This has
resulted in decreases in interest expense compared to 2000. For the six month
periods, interest decreased by $667,005. For the three month period, the
decrease was $343,085.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.
No material legal proceedings are currently pending against the Partnership or
against any of its assets. The following is a discussion of legal matters
involving the Partnership but which do not represent claims against the
Partnership or its assets.
In January 2000, Applied Magnetics Corporation filed for protection from
creditors under Chapter 11 of the U.S. Bankruptcy Code. The Partnership has
assets with a total net book value of $8,048,095 leased to Applied Magnetics
Corporation. On January 31, 2000, the General Partner was appointed to the
Official Committee of Unsecured Creditors and currently serves as the
Chairperson of the Committee. Procedures were quickly undertaken for the
liquidation of the Partnership's leased equipment, which proceeds resulted in
recoveries of $1,773,798 or 21.7% of original equipment cost. As of November 1,
2000, liquidation of the assets was completed.
The Partnership anticipates additional amounts may be recoverable through the
reorganization of the lessee's business, however, any recoveries above the
amounts received upon liquidation of the Partnership's equipment are highly
uncertain and speculative.
15
Item 2. Changes In Securities.
Inapplicable.
Item 3. Defaults Upon Senior Securities.
Inapplicable.
Item 4. Submission Of Matters To A Vote Of Security Holders.
Inapplicable.
Item 5. Other Information.
Inapplicable.
Item 6. Exhibits And Reports On Form 8-K.
(a)Documents filed as a part of this report
1. Financial Statements
Included in Part I of this report:
Balance Sheets, June 30, 2001 and December 31, 2000.
Statement of changes in partners' capital for the six
months ended June 30, 2001. Statements of operations for
the six and three month periods ended June 30, 2001 and
2000. Statement of cash flows for the six and three month
periods ended June 30, 2001 and 2000. Notes to the
Financial Statements.
2. Financial Statement Schedules
All other schedules for which provision is made in the
applicable accounting regulations of the Securities and
Exchange Commission are not required under the related
instructions or are inapplicable, and therefore have been
omitted.
(b) Report on Form 8-K
None
16
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date:
August 8, 2001
ATEL CAPITAL EQUIPMENT FUND VII, L.P.
(Registrant)
By: ATEL Financial Services, LLC
General Partner of Registrant
By: /s/ DEAN L. CASH
------------------------------------
Dean L. Cash
President and Chief Executive
Officer of General Partner
By: /s/ PARITOSH K. CHOKSI
-------------------------------------
Paritosh K. Choksi
Executive Vice President of
General Partner, Principal
financial officer of registrant
By: /s/ DONALD E. CARPENTER
---------------------------------------
Donald E. Carpenter
Principal accounting
officer of registrant