January 7, 2005
Bush Meets
with Class-Action Supporters, Stirs Optimism
President Bush met yesterday with a bipartisan group of lawmakers in an
effort to generate momentum behind class-action lawsuit legislation,
CongressDaily reported. Appearing after the session at the
White House, Sen. Christopher Dodd (D-Conn.), expressed optimism that
the legislation could be finished by Easter if senators returned to a
previous compromise worked out more than a year ago. Sen. George
Voinovich (R-Ohio) indicated Bush was supportive of this strategy.
Voinovich said the compromise had enough support to clear the Senate but
was stalled by amendments.
The legislation would move many lawsuits from state courts to federal
courts, where more stringent rules would govern the cases. The House
passed a class-action bill last year, and a Senate version that included
bipartisan compromises not in the House bill had the support of more
than 60 senators. But the Senate bill stalled after GOP and Democratic
leaders locked horns over unrelated amendments.
Pension
Agency Is About to Get a Rescue Plan
With the federal pension
insurance program in a rapid decline and bracing itself for another year
of record losses, officials in the Bush administration are close to
unveiling a rescue plan, the New York Times reported.
Elements of the
coming rescue plan have been floated by administration officials in
recent public speeches and at professional gatherings. Critical measures
include charging higher insurance premiums to companies that pose
greater risks to the pension program, tightening the funding rules and
requiring companies to give employees more information about the health
of their pension plans. Achieving most of these measures will require
Congressional action. Those close to the planning process expect the
details to be disclosed sometime next week. Read the full article at
www.nytimes.com
Adelphia
Extends Deadline for Bidders
Adelphia Communications will
extend its deadline by two weeks for accepting bids from potential
buyers, to the end of January from Jan. 16, the New York
Times reported. Adelphia said that more than 50 potential
buyers had expressed interest in bidding for the company, which has been
under bankruptcy protection since 2002. The company said it planned to
decide on a buyer by the end of the first quarter.
UNITED
AIRLINES
United
Pilots Ratify Tentative Deal-Union
Pilots at UAL Corp., parent of
bankrupt United Airlines, yesterday overwhelmingly ratified a new
contract which will allow the airline to cut wages and get rid of
traditional pensions but will give the pilots future financial
concessions, Reuters reported. The contract would provide the airline
with $180 million in annual labor savings, according to a statement from
the Air Line Pilots Association. It must still be approved by U.S.
Bankruptcy Court Judge Eugene Wedoff, who began hearing arguments
yesterday afternoon. The deal is opposed by several groups including the
Pension Benefit Guaranty Corp., the newswire reported.
United's
Ted Starts Flights
from
Midway
United Airlines yesterday said
its low-cost carrier Ted will begin service from
in closer competition with discount rivals such as Southwest Airlines,
Reuters reported. Ted will offer three daily flights between Midway and
flights between Midway and
Kmart Unit
Sets $4 Billion Loan Plan for Sears Buy
Kmart Holding Corp. yesterday
said several banks have committed $3.5 billion of a $4 billion loan that
will be available once the discount retailer's $10.8 billion deal to buy
Sears, Roebuck & Co., Reuters reported. Funds from the loan, secured
by the retailer's inventory, will be available for five years for
working capital, capital expenditures, acquisitions and other general
corporate purposes. The merger, which would create the
third-largest
retailer, is expected to close in early March.
Judge to
Let
Void Contract
Bankrupt US Airways won court
permission yesterday to void machinists' contracts if they do not agree
to concessions quickly, Reuters reported. Judge Stephen Mitchell of the
U.S. Bankruptcy Court for the Eastern District of Virginia granted the
company's motion to void contracts for nearly 9,000 mechanics and
baggage handlers represented by the International Association of
Machinists if the union rejects proposed concessions.
Mitchell also terminated
pensions covering machinists and flight attendants. The company will
replace terminated accounts with cheaper ones. Pilots' long-term pension
plan was terminated in 2003 during the company's previous bankruptcy.
Including pension cuts, the airline has sought more than $300 million in
givebacks from machinists, the newswire reported.
Continental
Air Facing Liquidity Problems
Continental Airlines Inc. said
yesterday that failure to achieve $500 million in annual wage reductions
by Feb. 28 could result in it running out of cash, Reuters reported. The
carrier warned in a filing with federal regulators of 'inadequate
liquidity,' saying it expects to lose 'hundreds of millions of dollars'
in 2005 without cost cuts under current market conditions. Continental
shares, which have risen more than 12 percent in the past two months,
fell 86 cents, or 7.7 percent, to $10.35 in morning trading on the New
York Stock Exchange.
U.S. Judge
Sets YUKOS Hearing for Feb. 16
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bankruptcy judge yesterday scheduled a two-day hearing starting Feb. 16
to hear arguments on dismissing giant Russian oil firm YUKOS's chapter
11 bankruptcy filing, Reuters reported. Lawyers for Deutsche Bank had
asked U.S. Judge Letitia Clark to throw out the bankruptcy filing YUKOS
made last month, arguing in a filing the
court had no jurisdiction over the company or the sale of its main
oil-producing arm, Yuganskneftegaz, the newswire reported.