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| 8-K - ICON INCOME FUND EIGHT /DE | body.htm |
Exhibit 99.1
ICON Capital
Corp 150 Grossman
Drive Braintree, MA
02184
April 12,
2010
Re: ICON
Income Fund Eight A L.P. (“Fund Eight A”) Liquidating Trust (the
“Trust”)
Dear
Investor:
As you
know, at the end of 2009, the material asset remaining in Fund Eight A’s
portfolio was its investment in a joint venture that leased telecommunications
equipment to Global Crossing Telecommunications, Inc. (“Global
Crossing”). On February 13, 2009, Fund Eight A monetized its Global
Crossing investment and, on March 1, 2009, distributed proceeds from its Global
Crossing investment to investors. Accordingly, as of March 16, 2009,
Fund Eight A transferred all of its remaining assets and liabilities to the
Trust and each investor in Fund Eight A received a pro rata interest in the
Trust in exchange for its interest in Fund Eight A. At the time of
the transfer, Fund Eight A’s sole non-cash asset was a 0.8% interest in an
investment in North Sea (Connecticut) Limited Partnership (“North Sea”), an
entity that owned a 100% interest in a mobile offshore drilling rig that was
subject to a lease with and is the subject of a litigation against Rowan
Companies, Inc. (“Rowan”).
The
Trust’s interest in North Sea entitles the Trust to receive proceeds from
the litigation with
Rowan regarding the Rowan Halifax mobile offshore jack-up drilling rig, if and
when received. On March 7, 2007, the Texas State Court issued a final
judgment and order that, among other things, ordered Rowan to pay North Sea the
approximately $60 million plus interest thereon that North Sea claimed as its
damages, as well as $500,000 in attorneys’ fees. The Trust's portion
of the net proceeds, after deducting all costs and expenses incurred in
connection with the litigation, cannot be calculated until the litigation is
resolved. Later that year, Rowan appealed the Texas State Court's
judgment to the Texas Court of Appeals. On March 31, 2009, by a two to one
decision of the appellate panel, the Court of Appeals rendered its decision to
reverse the Texas State Court’s decision. On February 4, 2010, the
Texas Court of Appeals denied North Sea’s motions for rehearing and
reconsideration. We and the other North Sea partners strongly
disagree with the decision of the appellate panel and continue to believe that
our interpretation of the charter agreement with Rowan and the Texas State
Court’s decision are both correct. To that end, North Sea filed a
petition to review the Court of Appeals decision in the Texas Supreme Court on
March 22, 2010.
We and
the other North Sea partners are working vigorously to have the Court of
Appeals’ decision reconsidered and, if necessary, overturned as soon as
practicable. While it is not possible at this stage to determine the likelihood
of the outcome of the litigation, we and the other North Sea partners believe
that the Texas State Court’s decision is correct and we are working with the
other North Sea partners to vigorously pursue its claims and defend the court’s
decision. Although the court initially ruled in North Sea’s favor, the final
outcome of any appeal is uncertain. The appeals process may span several more
years, during which time the Trust expects to incur additional expenses and
legal fees. If the Texas State Court’s decision is ultimately reversed on
appeal, the matter could be remanded to the Texas State Court and could proceed
to trial, which would further delay a resolution of the dispute. A trial would
require the Trust and the other North Sea partners to devote significant
resources, including substantial time and money, to the pursuit of North Sea’s
claims. There is no certainty that a trial will result in a favorable
verdict. As we have previously disclosed to you, Fund Eight A was
adversely affected by several events, including the loss on three significantly
leveraged investments and the tragic events of September 11, 2001. Nevertheless,
as of December 31, 2009, investors that joined the Fund at its outset in October
1998 have received $126.11 in cash distributions for every $100 invested as
other investments made by the fund were able to offset some of these adverse
events. While it is still our hope and expectation that the Rowan litigation
will ultimately be resolved in favor North Sea, the eventual total return for
Fund Eight A’s investors will likely not be impacted by the result either
way.
We will
continue to update you on the status of the Rowan litigation as it progresses to
a final resolution. Should you have any questions please call our Investor
Relations Department at (800) 343-3736.