IBM is no white knight for lessees of IBM equipment from Atlantic Computer Systems Plc, the British & Commonwealth subsidiary which went into receivership earlier this year (CI No 1,417). So says Geoff Sewell of the European Computer Leasing and Trading Association. IBM has been chosen, for an undisclosed sum, by the Adminstrators at Price Waterhouse as the preferred intermediary for dealing with lessees and lessors of IBM kit from Atlantic. IBM says that its top priority is to serve its customers and that as many Atlantic lessees can neither upgrade or replace their equi`ment because many Atlantic lessors need a third party to step in with financial resources and personnel, it was an obvious move for IBM to negotiate this arrangement with Price Waterhouse. However, IBM will not assume any of Atlantic’s liabilities and that includes the controversial flex and walk options. Each lessee is completely free to deal with anybody he chooses in negotiating his release from Atlantic contracts and will not be placed under any obligation to deal with IBM. Any third party can negotiate a settlement with the head lessor and the Administrator. So what does IBM UK get for its undisclosed sum? Aside from, it hopes, freeing up the market for its hardware, it will now presumably have access to the background of all IBM users that leased equipment from Atlantic. Sewell believes that the preferred intermediary status that IBM has negotiated with Price Waterhouse simply reflects the Administrators’ recognition that they do not know how to handle the renegotiation of the Flexlease programme and remarketing requirements. Sewell is advising Atlantic lessees to take into consideration the fact that IBM is in the business of selling new equipment and, consequently, before they decide to deal with IBM they should consider how easy their current kit is to remarket. It may well prove to be the case that a third party would be better placed for the remarketing service – a second quotation should always be sought for a lease. On the whole, however, Sewell believes this move by IBM is a good thing because it has opened the gates and unlocked a sealed situation, enabling lessees to negotiate with anybody and making them come to terms with the fact that there is no white knight waiting in the wings.
