Form 10-Q

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                  |X|     Quarterly Report Pursuant to Section 13 or 15(d) of
                          the Securities Exchange Act of 1934.
                          For the quarterly period ended September 30, 2000

                  |_|     Transition Report Pursuant to Section 13 or 15(d) of
                          the Securities Exchange Act of 1934.
                          For the transition period from _______ to _______

                         Commission File Number 0-28368

                      ATEL Cash Distribution Fund VI, L.P.
             (Exact name of registrant as specified in its charter)

California                                                            94-3207229
----------                                                            ----------
(State or other jurisdiction of                               (I. R. S. Employer
 incorporation or organization)                              Identification No.)

           235 Pine Street, 6th Floor, San Francisco, California 94104
                    (Address of principal executive offices)

       Registrant's telephone number, including area code: (415) 989-8800



Indicate  by a check  mark  whether  the  registrant  (1) has filed all  reports
required to be filed by section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days.

                                     Yes |X|
                                     No  |_|

                       DOCUMENTS INCORPORATED BY REFERENCE

                                      None

                                       1
<PAGE>

                          Part I. FINANCIAL INFORMATION

Item 1.  Financial Statements.




















                                       2
<PAGE>

                      ATEL CASH DISTRIBUTION FUND VI, L.P.

                                 BALANCE SHEETS

                    SEPTEMBER 30, 2000 AND DECEMBER 31, 1999
                                   (Unaudited)


                                     ASSETS

                                                   2000              1999
                                                   ----              ----
Cash and cash equivalents                         $ 2,979,142         $ 390,463

Accounts receivable                                 6,952,307        10,368,154

Investments in leases                              71,975,673        99,946,381
                                             ----------------- -----------------
Total assets                                     $ 81,907,122      $110,704,998
                                             ================= =================


                        LIABILITIES AND PARTNERS' CAPITAL


Non-recourse debt                                $ 30,253,794      $ 46,490,585

Line of credit                                              -         8,350,000

Accounts payable:
   General Partner                                    144,234         1,076,757
   Equipment purchases                                  5,452             5,452
   Other                                              505,535           593,862

Accrued interest payable                              758,676         1,551,104

Unearned operating lease income                       173,322           429,486
                                             ----------------- -----------------
Total liabilities                                  31,841,013        58,497,246
Partners' capital:
   General Partner                                   (490,099)         (567,944)
   Limited Partners                                50,556,208        52,775,696
                                             ----------------- -----------------
Total partners' capital                            50,066,109        52,207,752
                                             ----------------- -----------------
Total liabilities and partners' capital          $ 81,907,122      $110,704,998
                                             ================= =================




                             See accompanying notes.

                                       3
<PAGE>

                      ATEL CASH DISTRIBUTION FUND VI, L.P.

                            STATEMENTS OF OPERATIONS

                       NINE AND THREE MONTH PERIODS ENDED
                           SEPTEMBER 30, 2000 AND 1999
                                   (Unaudited)




<TABLE>
<CAPTION>
                                                                 Nine Months Ended                  Three Months Ended
                                                                  September 30,                        September 30,
                                                                  -------------                        -------------
                                                              2000              1999               2000              1999
                                                              ----              ----               ----              ----
Revenues:
Leasing activities:
<S>                                                          <C>               <C>                <C>               <C>
   Operating leases                                          $17,263,810       $ 26,218,702       $ 5,634,027       $ 8,163,781
   Direct financing leases                                        74,155             82,736            24,147            26,130
   Gain (loss) on sales of assets                              3,930,585            222,217          (172,840)           64,778
Interest                                                         151,931              5,879            82,822             2,432
Other                                                             20,128             17,367            15,833             4,848
                                                        ----------------- ------------------ ----------------- -----------------
                                                              21,440,609         26,546,901         5,583,989         8,261,969
Expenses:
Depreciation and amortization                                 12,759,010         17,327,722         3,688,859         5,471,107
Interest expense                                               2,484,852          3,710,959           754,695         1,193,081
Equipment and incentive management fees to
   General Partner                                               698,937            886,812           208,409           310,796
Other                                                            612,246            521,470           249,235           171,184
Administrative cost reimbursements to General
   Partner                                                       340,035            278,463           125,108           128,155
Professional fees                                                 81,813             53,660            12,883            14,999
Provision for losses                                                   -            500,000                 -           500,000
                                                        ----------------- ------------------ ----------------- -----------------
                                                              16,976,893         23,279,086         5,039,189         7,789,322
                                                        ----------------- ------------------ ----------------- -----------------
Income before extraordinary item                               4,463,716          3,267,815           544,800           472,647
Extraordinary gain on early extinguishment of
   debt                                                        3,320,774                  -         3,320,774                 -
                                                        ----------------- ------------------ ----------------- -----------------
Net income                                                   $ 7,784,490        $ 3,267,815       $ 3,865,574         $ 472,647
                                                        ================= ================== ================= =================

Net income:
   General Partner                                              $ 77,845           $ 32,678          $ 38,656           $ 4,726
   Limited Partners                                            7,706,645          3,235,137         3,826,918           467,921
                                                        ----------------- ------------------ ----------------- -----------------
                                                             $ 7,784,490        $ 3,267,815       $ 3,865,574         $ 472,647
                                                        ================= ================== ================= =================

Income before extraordinary item per limited
   partnership unit                                               $ 0.35             $ 0.26            $ 0.04            $ 0.04
Extraordinary gain on early extinguishment of
   debt per limited partnership unit                                0.27                  -              0.27                 -
                                                        ----------------- ------------------ ----------------- -----------------
Net income per limited partnership unit                           $ 0.62             $ 0.26            $ 0.31            $ 0.04
                                                        ================= ================== ================= =================

Weighted average number of Units outstanding                  12,500,050         12,500,050        12,500,050        12,500,050
</TABLE>

                             See accompanying notes.


                                       4
<PAGE>

                      ATEL CASH DISTRIBUTION FUND VI, L.P.

                    STATEMENT OF CHANGES IN PARTNERS' CAPITAL

                             NINE MONTH PERIOD ENDED
                               SEPTEMBER 30, 2000

                                   (Unaudited)

<TABLE>
<CAPTION>
                                     Limited Partners              General
                               Units             Amount            Partner            Total

<S>                             <C>              <C>                 <C>             <C>
Balance December 31, 1999       12,500,050       $ 52,775,696        $ (567,944)     $ 52,207,752
Distributions to partners                          (9,926,133)                -        (9,926,133)
Net income                                          7,706,645            77,845         7,784,490
                          ----------------- ------------------ ----------------- -----------------
Balance September 30, 2000      12,500,050       $ 50,556,208        $ (490,099)     $ 50,066,109
                          ================= ================== ================= =================
</TABLE>


                             See accompanying notes.


                            STATEMENTS OF CASH FLOWS

                       NINE AND THREE MONTH PERIODS ENDED
                           SEPTEMBER 30, 2000 AND 1999


<TABLE>
<CAPTION>
                                                                 Nine Months Ended                  Three Months Ended
                                                                  September 30,                        September 30,
                                                                  -------------                        -------------
                                                              2000              1999               2000              1999
                                                              ----              ----               ----              ----
Operating activities:
<S>                                                          <C>                <C>               <C>                 <C>
Net income                                                   $ 7,784,490        $ 3,267,815       $ 3,865,574         $ 472,647
Adjustment to reconcile net income to cash
   provided by operating activities:
   Depreciation and amortization                              12,759,010         17,327,722         3,688,859         5,471,107
   (Gain) loss on sales of assets                             (3,930,585)          (222,217)          172,840           (64,778)
   Provision for losses                                                -            500,000                 -           500,000
   Extraordinary gain on early extinguishment of
      debt                                                    (3,320,774)                 -        (3,320,774)                -
   Changes in operating assets and liabilities:
      Accounts receivable                                     (1,384,153)        (2,742,991)       (1,755,259)       (5,671,357)
      Accounts payable, General Partner                         (932,523)           950,244          (148,836)           93,724
      Accounts payable, other                                    (88,327)           126,445           (23,850)           38,855
      Accrued interest payable                                   981,917            904,099           331,944         2,370,820
      Unearned lease income                                     (256,164)           116,865           (19,485)           46,452
                                                        ----------------- ------------------ ----------------- -----------------
Net cash provided by operations                               11,612,891         20,227,982         2,791,013         3,257,470
                                                        ----------------- ------------------ ----------------- -----------------

Investing activities:
Proceeds from sales of assets                                 18,990,133          1,437,950           136,349           566,759
Reduction in net investment in direct financing
   leases                                                        152,150            186,910            38,576            83,043
Purchases of equipment on operating leases                             -           (116,028)                -             8,372
                                                        ----------------- ------------------ ----------------- -----------------
Net cash provided by investing activities                     19,142,283          1,508,832           174,925           658,174
                                                        ----------------- ------------------ ----------------- -----------------
</TABLE>

                                       5
<PAGE>

                      ATEL CASH DISTRIBUTION FUND VI, L.P.

                             STATEMENT OF CASH FLOWS
                                   (CONTINUED)

                       NINE AND THREE MONTH PERIODS ENDED
                           SEPTEMBER 30, 2000 AND 1999


<TABLE>
<CAPTION>
                                                                 Nine Months Ended                  Three Months Ended
                                                                  September 30,                        September 30,
                                                                  -------------                        -------------
                                                              2000              1999               2000              1999
                                                              ----              ----               ----              ----
Financing activities:
<S>                                                          <C>                <C>               <C>                 <C>
Distributions to Partners                                     (9,926,133)        (9,889,704)       (3,363,759)       (3,282,639)
Repayments of non-recourse debt                               (9,890,362)       (13,822,840)       (1,921,667)       (1,062,588)
Repayments of borrowings under line of credit                 (8,350,000)                 -                 -                 -
Borrowings under line of credit                                        -          2,250,000                 -         1,000,000
                                                        ----------------- ------------------ ----------------- -----------------
Net cash used in financing activities                        (28,166,495)       (21,462,544)       (5,285,426)       (3,345,227)
                                                        ----------------- ------------------ ----------------- -----------------
Net increase (decrease) in cash and cash
   equivalents                                                 2,588,679            274,270        (2,319,488)          570,417
Cash and cash equivalents at beginning of
   period                                                        390,463            744,132         5,298,630           447,985
                                                        ----------------- ------------------ ----------------- -----------------
Cash and cash equivalents at end of period                   $ 2,979,142        $ 1,018,402       $ 2,979,142       $ 1,018,402
                                                        ================= ================== ================= =================


Supplemental disclosures of cash flow
   information:
Cash paid during the period for interest                     $ 3,277,280        $ 4,910,896       $ 2,197,096       $ 3,030,333
                                                        ================= ================== ================= =================

Supplemental disclosure of non-cash
   transactions:
Offset of accounts receivable and debt service per
   lease and debt agreement:
Accrued interest payable                                    $ (1,774,345)       $(2,104,036)              $ -               $ -
Non-recourse debt                                             (3,025,655)        (2,695,964)                -                 -
                                                        ----------------- ------------------ ----------------- -----------------
Accounts receivable                                         $ (4,800,000)       $(4,800,000)              $ -               $ -
                                                        ================= ================== ================= =================
</TABLE>





                             See accompanying notes.


                                       6
<PAGE>

                      ATEL CASH DISTRIBUTION FUND VI, L.P.

                          NOTES TO FINANCIAL STATEMENTS

                               SEPTEMBER 30, 2000
                                   (Unaudited)


1.  Summary of significant accounting policies:

Interim financial statements:

The unaudited interim financial statements reflect all adjustments which are, in
the opinion of the general partners,  necessary to a fair statement of financial
position and results of operations for the interim periods  presented.  All such
adjustments are of a normal recurring nature.  These unaudited interim financial
statements  should be read in  conjunction  with the most recent  report on Form
10K.


2.  Organization and partnership matters:

ATEL Cash  Distribution  Fund VI, L.P. (the Fund),  was formed under the laws of
the  State  of  California  on June 29 ,  1994,  for the  purpose  of  acquiring
equipment to engage in equipment leasing and sales activities.  Contributions in
the amount of $600 were received as of July 21, 1994, $100 of which  represented
the General Partner's (ATEL Financial  Corporation's)  continuing interest,  and
$500 of which represented the Initial Limited Partners' capital investment.

Upon the sale of the  minimum  amount of Units of Limited  Partnership  interest
(Units) of  $1,200,000  and the  receipt of the  proceeds  thereof on January 3,
1995, the Partnership commenced operations.

The Partnership  does not make a provision for income taxes since all income and
losses will be allocated to the Partners for inclusion in their  individual  tax
returns.


3.  Investment in leases:

The Partnership's investment in leases consists of the following:

<TABLE>
<CAPTION>
                                                                            Depreciation
                                                            Balance          Expense or          Reclass-          Balance
                                                          December 31,      Amortization       ifications &     September 30,
                                                              1999            of Leases        Dispositions          2000
                                                              ----            ---------        ------------          ----
<S>                                                         <C>                <C>               <C>               <C>
Net investment in operating leases                          $102,305,273       $(12,359,613)     $(18,289,284)     $ 71,656,376
Equipment held for sale or lease                                 645,593                  -         3,222,804         3,868,397
Initial direct costs, net of accumulated
   amortization of $2,923,6172,094,732 in
   2000 and $2,568,966 in 1999                                 1,494,753           (399,397)                -         1,095,356
Net investment in direct financing leases                      1,019,587           (152,150)            6,932           874,369
Residual interests                                               379,551                  -                 -           379,551
Reserve for losses                                            (5,898,376)                 -                 -        (5,898,376)
                                                        ----------------- ------------------ ----------------- -----------------
                                                             $99,946,381       $(12,911,160)     $(15,059,548)     $ 71,975,673
                                                        ================= ================== ================= =================
</TABLE>



                                       7
<PAGE>

                      ATEL CASH DISTRIBUTION FUND VI, L.P.

                          NOTES TO FINANCIAL STATEMENTS

                               SEPTEMBER 30, 2000
                                   (Unaudited)


3.  Investment in leases (continued):

Property on operating leases consists of the following:

<TABLE>
<CAPTION>
                                         Balance                                                                   Balance
                                      December 31,      Acquisitions, Dispositions & Reclassifications          September 30,
                                                        ----------------------------------------------
                                          1999            1st Quarter        2nd Quarter       3rd Quarter           2000
                                          ----            -----------        -----------       -----------           ----
<S>                                     <C>                <C>                  <C>               <C>              <C>
Transportation                          $ 109,727,891      $ (18,286,459)       $ 5,238,438       $(5,340,899)     $ 91,338,971
Materials handling                         19,507,740            (77,768)        (2,717,599)        2,310,088        19,022,461
Construction                               17,753,581         (1,250,021)          (756,654)                -        15,746,906
Manufacturing                              29,440,009        (18,320,603)                 -                 -        11,119,406
Office automation                           6,578,010           (741,224)        (2,645,923)          890,149         4,081,012
Other                                       2,964,538           (347,462)        (1,345,729)          750,300         2,021,647
                                    ------------------  ----------------- ------------------ ----------------- -----------------
                                          185,971,769        (39,023,537)        (2,227,467)       (1,390,362)      143,330,403
Less accumulated depreciation             (83,666,496)        16,261,566         (1,969,591)       (2,299,506)      (71,674,027)
                                    ------------------  ----------------- ------------------ ----------------- -----------------
                                        $ 102,305,273      $ (22,761,971)       $(4,197,058)      $(3,689,868)     $ 71,656,376
                                    ==================  ================= ================== ================= =================
</TABLE>

All of the property on leases was acquired in 1995, 1996 and 1997.

At September 30, 2000,  the aggregate  amounts of future  minimum lease payments
are as follows:

<TABLE>
<CAPTION>
                                                               Direct
                                           Operating          Financing
                                             Leases            Leases             Total
<S>                                          <C>                   <C>            <C>
Three months ending December 31, 2000        $ 3,898,870           $ 64,252       $ 3,963,122
        Year ending December 31, 2001         10,704,207            231,853        10,936,060
                                 2002          5,335,918            158,720         5,494,638
                                 2003          3,299,765             98,760         3,398,525
                                 2004          2,808,012             98,760         2,906,772
                           Thereafter         14,867,061            296,280        15,163,341
                                        ----------------- ------------------ -----------------
                                             $40,913,833          $ 948,625      $ 41,862,458
                                        ================= ================== =================
</TABLE>




                                       8

<PAGE>

                      ATEL CASH DISTRIBUTION FUND VI, L.P.

                          NOTES TO FINANCIAL STATEMENTS

                               SEPTEMBER 30, 2000
                                   (Unaudited)


4.  Non-recourse debt:

Notes payable to financial  institutions are due in varying  monthly,  quarterly
and semi-annual installments of principal and interest. The notes are secured by
assignments  of lease  payments and pledges of the assets  which were  purchased
with the proceeds of the particular notes. Interest rates on the notes vary from
6.37% to 15.54%.

Future minimum principal  payments of non-recourse debt as of September 30, 2000
are as follows:

<TABLE>
<CAPTION>
                                           Principal          Interest            Total
<S>                                          <C>                  <C>             <C>
Three months ending December 31, 2000        $ 1,050,612          $ 363,054       $ 1,413,666
        Year ending December 31, 2001          7,448,433          2,478,980         9,927,413
                                 2002          5,745,613          1,828,731         7,574,344
                                 2003          5,487,689          1,239,498         6,727,187
                                 2004            822,894            635,737         1,458,631
                           Thereafter          9,698,553          3,649,283        13,347,836
                                        ----------------- ------------------ -----------------
                                             $30,253,794       $ 10,195,283      $ 40,449,077
                                        ================= ================== =================
</TABLE>


5.  Related party transactions:

The terms of the Limited Partnership  Agreement provide that the General Partner
and/or   Affiliates   are  entitled  to  receive   certain  fees  for  equipment
acquisition, management and resale and for management of the Partnership.

The  General   Partner   and/or   Affiliates   earned  fees,   commissions   and
reimbursements, pursuant to the Limited Partnership Agreement as follows:

<TABLE>
<CAPTION>
                                                                                      2000                 1999
                                                                                      ----                 ----
<S>                                                                                  <C>               <C>
Incentive  management  fees  (computed  as 3.25% of  distributions  of cash from
operations,  as defined in the  Limited  Partnership  Agreement)  and  equipment
management  fees (computed as 3.5% of gross revenues from operating  leases,  as
defined in the Limited Partnership Agreement plus 2% of gross revenues from full
payout leases, as defined in the Limited Partnership Agreement).                     $   698,937       $   886,812

Administrative cost reimbursements to General Partner                                    340,035           278,463
                                                                                ----------------- -----------------
                                                                                     $ 1,038,972       $ 1,165,275
                                                                                ================= =================
</TABLE>

The Limited Partnership Agreement allows for the reimbursement of costs incurred
by the General Partner in providing  administrative services to the Partnership.
Administrative  services  provided  include  Partnership  accounting,   investor
relations,  legal  counsel and lease and  equipment  documentation.  The General
Partner  is not  reimbursed  for  services  where it is  entitled  to  receive a
separate  fee as  compensation  for  such  services,  such  as  acquisition  and
management of equipment.  Reimbursable costs incurred by the General Partner are
allocated  to the  Partnership  based upon  actual time  incurred  by  employees
working on Partnership  business and an allocation of rent and other costs based
on utilization studies.



                                       9
<PAGE>

                      ATEL CASH DISTRIBUTION FUND VI, L.P.

                          NOTES TO FINANCIAL STATEMENTS

                               SEPTEMBER 30, 2000
                                   (Unaudited)


5.  Related party transactions (continued):

Substantially  all  employees  of the General  Partner  record time  incurred in
performing administrative services on behalf of all of the Partnerships serviced
by the General  Partner.  The General Partner believes that the costs reimbursed
are the lower of actual  costs  incurred  on  behalf of the  Partnership  or the
amount  the  Partnership  would  be  required  to pay  independent  parties  for
comparable  administrative  services  in the same  geographic  location  and are
reimbursable in accordance with the Limited Partnership Agreement.


6. Partner's capital:

As of  September  30,  2000,  12,500,050  Units  ($125,000,500)  were issued and
outstanding.  The Fund is authorized to issue up to 12,500,050 Units,  including
the 50 Units issued to the initial limited partners.

The Partnership Net Profits, Net Losses, and Tax Credits are to be allocated 99%
to the Limited Partners and 1% to the General Partner.

Available Cash from Operations and Cash from Sales and  Refinancing,  as defined
in the Limited Partnership Agreement, shall be distributed as follows:

First,  95.75% of Distributions of Cash from Operations to the Limited Partners,
1% of  Distributions of Cash from Operations to the General Partner and 3.25% to
an affiliate of the General Partner as Incentive Management Compensation, 99% of
Distributions  of Cash from Sales or Refinancing to the Limited  Partners and 1%
of Cash from Sales or Refinancing to the General Partner.

Second,  the balance to the Limited  Partners  until the Limited  Partners  have
received  Aggregate  Distributions in an amount equal to their Original Invested
Capital, as defined,  plus a 10% per annum cumulative  (compounded daily) return
on their Adjusted Invested Capital.

Third, an affiliate of the General Partner will receive as Incentive  Management
Compensation, 3.25% of remaining Cash from Sales or Refinancing.

Fourth, the balance to the Limited Partners.



                                       10
<PAGE>

                      ATEL CASH DISTRIBUTION FUND VI, L.P.

                          NOTES TO FINANCIAL STATEMENTS

                               SEPTEMBER 30, 2000
                                   (Unaudited)


7.  Line of credit:

The  Partnership  participates  with the  General  Partner  and  certain  of its
Affiliates in a $77,500,000 revolving credit agreement with a group of financial
institutions  which  expires  on  July  28,  2001.  The  agreement  includes  an
acquisition  facility and a warehouse  facility which are used to provide bridge
financing  for  assets  on  leases.  Draws on the  acquisition  facility  by any
individual  borrower  are  secured  only by that  borrower's  assets,  including
equipment and related leases.  Borrowings on the warehouse facility are recourse
jointly to certain of the Affiliates, the Partnership and the General Partner.

At September  30, 2000,  the  Partnership  had no  borrowings  under the line of
credit.

The credit agreement  includes certain  financial  covenants  applicable to each
borrower.  The Partnership was  incompliance  with its covenants as of September
30, 2000.






                                       11
<PAGE>

Item 2. Management's  Discussion and Analysis of Financial Condition and Results
of Operations

Capital Resources and Liquidity

In 2000,  the  Partnership's  primary  activity was equipment  leasing and sales
activities.

The  Partnership's  primary source of liquidity  during the first nine months of
2000 was  lease  rents  and  proceeds  from  the  sales  of  lease  assets.  The
Partnership's  primary source of liquidity  during the first nine months of 1999
was lease  rents.  The  liquidity  of the  Partnership  will vary in the future,
increasing to the extent cash flows from leases exceed expenses,  and decreasing
as lease assets are acquired,  as distributions are made to the limited partners
and to the extent expenses exceed cash flows from leases.

As another source of liquidity, the Partnership has contractual obligations with
a diversified  group of lessees which consist  primarily of fixed lease terms at
fixed rental amounts.  As the initial lease terms expire,  the Partnership  will
re-lease or sell the  equipment.  The future  liquidity  beyond the  contractual
minimum  rentals will depend on the General  Partner's  success in re-leasing or
selling the equipment as it comes off lease.

The  Partnership  participates  with the  General  Partner  and  certain  of its
affiliates in a $77,500,000  revolving  line of credit with a group of financial
institutions. The line of credit expires on July 28, 2001.

The Partnership  anticipates reinvesting a portion of lease payments from assets
owned in new leasing  transactions.  Such reinvestment will occur only after the
payment  of  all  obligations,   including  debt  service  (both  principal  and
interest), the payment of management and acquisition fees to the General Partner
and providing for cash distributions to the Limited Partners.

The Partnership currently has available adequate reserves to meet contingencies,
but in the event those  reserves were found to be  inadequate,  the  Partnership
would  likely be in a position to borrow  against its current  portfolio to meet
such  requirements.  The General  Partner  envisions  no such  requirements  for
operating purposes.

As of September  30, 2000,  the  Partnership  had borrowed  $100,521,405  with a
remaining  unpaid  balance of  $33,574,568.  The General  Partner  expects  that
aggregate  borrowings  in the future will not exceed 50% of aggregate  equipment
cost. In any event, the Agreement of Limited  Partnership limits such borrowings
to 50% of the total cost of equipment, in aggregate.

No  commitments  of capital  have been or are expected to be made other than for
the acquisition of additional  equipment.  There were no such  commitments as of
September 30, 2000.

If  inflation  in the general  economy  becomes  significant,  it may affect the
Partnership  inasmuch as the residual  (resale) values and rates on re-leases of
the  Partnership's  leased  assets may  increase as the costs of similar  assets
increase.  However,  the  Partnership's  revenues from existing leases would not
increase,  as such rates are generally fixed for the terms of the leases without
adjustment for inflation.

If interest rates increase  significantly,  the lease rates that the Partnership
can obtain on future  leases will be expected to increase as the cost of capital
is a significant  factor in the pricing of lease  financing.  Leases  already in
place, for the most part, would not be affected by changes in interest rates.

2000 vs. 1999:

In 2000 and 1999, lease rents were the Partnership's primary source of cash from
operating   activities.   Lease  rents  have  declined  as  a  result  of  lease
terminations and asset sales over the last year.

Proceeds from the sales of assets and direct financing lease rents were the only
investing  sources of cash.  Proceeds  from sales of such  assets  increased  by
$17,552,183  compared to 1999.  Most of the proceeds from sales in 2000 resulted
from the sales of assets on lease to Consolidated Rail and NEC Electronics.  The
only  investing  use of cash in 1999 was  payments on the  purchase of assets on
operating leases. There were none in 2000.

Financing sources of cash consisted of borrowings on the line of credit in 1999.
Repayments of  non-recourse  debt have  decreased as a result of scheduled  debt
payments.


                                       12
<PAGE>

Results of operations

For the nine month periods,  operations  resulted in net income of $4,463,716 in
2000 and $3,767,815 in 1999. For the three month periods, operations resulted in
net  income  of  $544,800  in 2000 and a net  loss of  $$972,642  in  1999.  The
Partnership's primary source of revenues is from operating leases.

Operating  lease revenues  decreased  slightly for both the nine and three month
periods compared to 1999 as a result of lease  terminations and asset sales over
the last year.

Depreciation  expense has declined by $4,568,712  (nine  months) and  $1,782,248
(three  months)  compared to 1999.  The decreases were the result of asset sales
over the last year.

Non-recourse  debt  balances  have been  reduced in 2000  compared  to 1999 as a
result of scheduled  debt  payments.  This has led to the  reduction of interest
expense of  $1,226,107  in 2000  compared to 1999 for the nine month  period and
$438,386 for the three month period.

In December 1999, one of the Partnership's lessees (Applied Magnetics) defaulted
on its leases and  sought  protection  under the  Bankruptcy  Act.  As a result,
reserves  were  established  related to those  assets  which had been  leased to
Applied  Magnetics as of December 31,  1999.  During the third  quarter of 2000,
most of the lease  assets were sold at auction and the  non-recourse  debt which
had been used to finance a significant  portion of the assets was  extinguished,
giving rise to an extraordinary gain.


                           PART II. OTHER INFORMATION

Item 1.  Legal Proceedings.

Quaker Coal Company

On December  31,  1997,  Quaker Coal  Company  requested a  moratorium  on lease
payments from January  through  March 1998. No lease  payments were made through
June of 1998. As a result,  the General  Partner  declared the lease in default.
Subsequently,  the lessee made the outstanding  payments,  however,  the General
Partner  refused to waive the default and insisted on additional  damages in the
range of  $1,428,000  to  $1,743,000.  The General  Partner  sued the lessee for
damages and was  awaiting  judgment  from the court when on June 16,  2000,  the
lessee filed for protection under the U. S. Bankruptcy Act.

The  Partnership has filed a stipulation for relief from stay to allow the court
to issue its  ruling,  and has filed a request to  participate  on the  Official
Committee of Unsecured  Creditors.  The  Partnership has succeeded upon securing
the return of its equipment  which it is currently  liquidating.  The amounts of
these  damages have not been included in the  financial  statements  included in
Item 1 of this report,  however the  liklihood of recovery of amounts  above the
liquidation of the equipment is speculative.

Applied Magnetics Corporation

In January 2000,  Applied  Magnetics  Corporation,  a lessee of the Partnership,
filed for  protection  from creditors  under Chapter 11 of the U. S.  Bankruptcy
Act. The Partnership has assets with a total net book value of $5,113,290 leased
to Applied Magnetics  Corporation.  On January 31, 2000, the General Partner was
appointed to the Official Committee of Unsecured  Creditors and currently serves
as the Chairperson of the Committee.  Procedures were quickly undertaken for the
liquidation of the Partnership's  leased equipment,  which proceeds were used to
satisfy  non-recourse  debt  secured by the  equipment.  Other than the proceeds
received  from  the  liquidation  of  the  Partnership's  equipment,  additional
recoveries  by  the  Partnership,   resulting  from  this  default,  are  fairly
speculative.

                                       13
<PAGE>

The Partnership  anticipates  additional amounts may be recoverable  through the
reorganization  of the lessee's  business,  however,  any  recoveries  above the
amounts  received upon  liquidation  of the  Partnership's  equipment are highly
uncertain and speculative. As of November 1, 2000, liquidation of the assets was
completed.

Item 2. Changes In Securities.

         Inapplicable.

Item 3. Defaults Upon Senior Securities.

         Inapplicable.

Item 4. Submission Of Matters To A Vote Of Security Holders.

         Inapplicable.

Item 5. Other Information.

         Inapplicable.

Item 6. Exhibits And Reports On Form 8-K.

                     (a)Documents filed as a part of this report

                     1.  Financial Statements
                         Included in Part I of this report:

                         Balance  Sheets,  September  30, 2000 and  December 31,
                         1999.

                         Statement of changes in partners' capital for the nine
                         month period ended  September 30, 2000.

                         Statements of operations  for the nine and three month
                         periods ended September 30, 2000 and 1999.

                         Statements  of cash flows for the nine and three  month
                         periods ended September 30, 2000 and 1999.

                         Notes to the Financial Statements

                     2.  Financial Statement Schedules
                         All other schedules for which provision is made in the
                         applicable accounting regulations of the Securities and
                         Exchange Commission are not required under the related
                         instructions or are inapplicable, and therefore have
                         been omitted.

                     (b) Report on Form 8-K

                         None


                                       14
<PAGE>

                                   SIGNATURES


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

Date:
November 9, 2000

                      ATEL CASH DISTRIBUTION FUND VI, L.P.
                                  (Registrant)



                                By: ATEL Financial Corporation
                                    General Partner of Registrant




                                By:   /s/ A. J. BATT
                                    --------------------------------------------
                                    A. J. Batt
                                    President and Chief Executive Officer of
                                    General Partner




                                By:   /s/ DEAN L. CASH
                                    --------------------------------------------
                                    Dean L. Cash
                                    Executive Vice President of General Partner





                                By:   /s/ PARITOSH K. CHOKSI
                                    --------------------------------------------
                                    Paritosh K. Choksi
                                    Principal financial officer of registrant





                                By:   /s/ DONALD E. CARPENTER
                                    --------------------------------------------
                                    Donald E. Carpenter
                                    Principal accounting officer of registrant