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SEC Filings

424B1
DITECH HOLDING CORP filed this Form 424B1 on 09/16/1997
Entire Document
 
<PAGE>   118
 
                 HANOVER CAPITAL PARTNERS LTD. AND SUBSIDIARIES
 
           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
                YEARS ENDED DECEMBER 31, 1996, 1995 AND 1994 AND
          FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996 (UNAUDITED)
 
     Amounts due from officers as of June 30, 1997 and December 31, 1996 include
$161,298 from the Company's President which will be repaid in three annual
amounts of $53,766 each August 1, beginning August 1, 1997.
 
     Notes payable to related parties at June 30, 1997, December 31, 1996 and
1995 consist of the following:
 

<TABLE>
<CAPTION>
                                                                         1996          1995
                                                          1997         --------     -----------
                                                       -----------
                                                       (UNAUDITED)
    <S>                                                <C>             <C>          <C>
    Note payable to officer..........................    $    --       $ 42,559      $       --
    Notes payable to ABH-I, LLC......................     40,745         90,459              --
                                                         -------       --------      ----------
    Notes payable to related parties.................    $40,745       $133,018      $       --
                                                         =======       ========      ==========
</TABLE>

 
     On January 1, 1996, HCP and its stockholders entered into an Exchange
Agreement (see Note 9) whereby HCP redeemed 40.836 shares of Class A common
stock from one of its stockholders in exchange for cash ($66,000) and a term
note in the amount of $42,559. The note was payable in full, with interest at
the prime rate plus 2.0% on December 31, 1996. The note and interest were paid
in full in January 1997.
 
     Notes payable to ABH-I LLC at June 30, 1997 and December 31, 1996 consisted
of three (3) promissory notes totaling $40,745 and $90,459, respectively. In
lieu of making certain capital contributions to ABH-I LLC, HCP executed
promissory notes. The capital contributions to ABH-I LLC were used to purchase
various mortgage pools. HCP is obligated to repay the promissory notes from time
to time on the date that HCP receives distributions from ABH-I LLC relating to
the specific mortgage pools. Any unpaid balance of the promissory note and any
accrued interest is due and payable on the date the "Last Specified Asset" (as
defined in the promissory note) is sold, transferred or disposed of. All of the
promissory notes bear interest at the prime rate (8.50% at June 30, 1997 and
8.25% at December 31, 1996).
 
     During 1995, the Company paid the remaining principal and interest balance,
in full, due on notes payable to certain officers of the Company. Such notes
were due on demand and bore interest at the rate of 1% in excess of the prime
rate from September 30, 1992 to the date of payment.
 
7.  PROPERTY AND EQUIPMENT
 
     Property and equipment at June 30, 1997, December 31, 1996 and 1995
consists of the following:
 

<TABLE>
<CAPTION>
                                                             1997         1996        1995
                                                          -----------   ---------   ---------
                                                          (UNAUDITED)
    <S>                                                   <C>           <C>         <C>
    Office machinery and equipment......................   $  405,471   $ 388,123   $ 265,136
    Furniture and fixtures..............................      111,246     111,246     106,501
    Leasehold improvements..............................       68,553      68,553      68,553
                                                           ----------   ---------   ---------
                                                              585,270     567,922     440,190
    Less accumulated depreciation and amortization......     (311,096)   (251,865)   (138,973)
                                                           ----------   ---------   ---------
    Property and equipment -- net.......................   $  274,174   $ 316,057   $ 301,217
                                                           ==========   =========   =========
</TABLE>

 
     Depreciation expense for the six months ended June 30, 1997 and for the
years ended December 31, 1996, 1995 and 1994 was $59,231, $113,885, $87,913 and
$84,023, respectively.
 
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