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GE CAPITAL AGREES TO PURCHASE AIRCRAFT FROM GPA FOR $1.35 BILLION

 STAMFORD, Conn., May 12 /PRNewswire/ -- GE Capital and GPA Group plc today announced that GE Capital has agreed to purchase, for approximately $1.35 billion, 45 Stage III aircraft leased to a variety of international carriers. The transaction is conditioned on GPA's bank lenders and shareholders providing the company with additional funding which would be partially convertible to equity. Except for the leases on the aircraft, GE Capital will not assume any of GPA's liabilities or obligations.
 As part of the aircraft purchase transaction, GE Capital will receive an option to acquire 60 to 80 percent of the shares of GPA over the next four years for an undisclosed price. The exact option percentage will be based on additional funding to be provided by existing GPA shareholders. GE Capital has also agreed to assist in future GPA aircraft securitizations.
 Both companies also said that they were discussing the formation of an aircraft management company which would be a GE Capital subsidiary. No agreement has yet been reached. This matter is expected to be resolved within the next several days.
 Denis J. Nayden, executive vice president of GE Capital, said, "GE Capital has been an active participant in the aircraft industry for more than 25 years. In this transaction, we are acquiring, at an attractive price, modern Stage III aircraft. All of the aircraft are less than three years old and they will be leased when we receive them. This transaction is strategic for GE Capital because it substantially expands our presence in the global leasing business."
 GE Capital, headquartered in Stamford, Conn., a wholly-owned subsidiary of General Electric Company (NYSE: GE), is a diversified financial services company with assets exceeding $92 billion. Commercial aircraft, including this transaction, represents less than eight percent of total assets. GE Capital's activities include specialty insurance, consumer services, specialized financing, equipment management and mid-market financing. GE is a diversified manufacturing, technology and services company with operations worldwide.
 -0- 5/12/93
 /CONTACT: Patricia D. Yoder of GE Capital, office 203-357-3965, or home 203-629-0986/
 (GE)


CO: GE Capital Corporation; GPA Group plc ST: Connecticut IN: AIR SU: TNM

LD -- NY110 -- 7824 05/12/93 18:26 EDT
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Publication:PR Newswire
Date:May 12, 1993
Words:361
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