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Report: Xerox Receives $435 Million in New Financing

Yi Ping Ho

Troubled Xerox (XRX Quote) will receive $435 million in secured financing from General Capital, a unit of General Electric(GE Quote), according to published reports this morning.

The financing, which Xerox has agreed to repay within 18 months, will reportedly boost the copier maker's near-term cash balance to $1.8 billion.

Yesterday, Xerox denied plans to file for bankruptcy and said it hired private investment bank Blackstone Group as a general financial adviser. Today's reports said Xerox has been negotiating to sell its European financing operations, and the financing will keep the operations going while discussions proceeded.

Xerox shares, which have lost three-quarter of their value in the last 12 months, closed at $5.88 in trading on the New York Stock Exchange Tuesday. In early trading Wednesday just after the open, shares were up 25 cents, or 4.3%, to $6.13.