March 23, 2004
Senate GOP Drafting Asbestos Bill for Debate in Mid-April
Legislation overhauling the asbestos litigation system should be ready
for a planned April 19 vote, according to a Senate leadership aide,
CongressDaily reported. Staffers will draft the measure in the
next several weeks, based on the bill the Senate Judiciary Committee
passed last year to replace the current litigation system with a
federally administered trust fund, the aide said. The bill probably will
include the funding arrangement Senate Majority Leader Bill Frist
(R-Tenn.) brokered last year, with the trust fund totaling $114 billion,
$46 billion coming from insurers, $57 billion from defendant companies
and the rest from existing asbestos trust funds. But labor unions and
key Democrats rejected that proposal. The bill also is expected to
incorporate medical criteria and other provisions proposed in
discussions by Sen. Arlen Specter (R-Pa.), the newswire reported.
Carlos Slim Buys Global Crossing Stake
Mexican billionaire Carlos Slim and his family have accumulated 9.1
percent of Global Crossing's common stock, the U.S. fiber optic network
operator said on Monday, Reuters reported. Slim, who controls the
largest mobile phone operator in Latin America, America Movil, will own
5 percent of Global Crossing's total equity along with other members of
his family.
Global Crossing recently emerged from bankruptcy protection. It built a
worldwide high-speed fiber optic network at the peak of the Internet
boom, but accumulated a debt load it could not service when demand and
prices for telecommunications traffic dropped sharply.
Spring Air Partners - North America Inc. Files Voluntary Petition to
Reorganize
Spring Air Partners - North America Inc., and its domestic subsidiaries,
filed a voluntary petition for reorganization under chapter 11 of the
U.S. Bankruptcy Code, the company announced in a press release
yesterday. Spring Air Partners filed the petition in the U.S. Bankruptcy
Court for the Southern District of New York. The company announced that
it is seeking immediate bankruptcy court approval of $3 million of
debtor-in-possession (DIP) financing to be provided by SAPNA Debt
Holdings LLC (an affiliate of H.I.G. Capital LLC) the company's senior
lender. The company also announced that in addition to the DIP credit
facility, it also anticipates receiving support from certain key trade
and other creditors. The company presently intends to pursue a
consensual plan of reorganization and believes that the DIP credit
facility, coupled with this third party support, will provide it with
sufficient liquidity to meet its working capital needs throughout the
reorganization process, according to the press release.
Safescript Pharmacies Inc. Files to Reorganize Under Chapter 11
Bankruptcy Protection
Safescript Pharmacies Inc. announced in a press release that its board
of directors filed a chapter 11 petition on Friday in bankruptcy court
on behalf of Safescript Pharmacies Inc. The company's debt structure,
created by its previous management, coupled with numerous judgments and
pending legal action against the company, jeopardized the much-needed
funding negotiations and prompted the board's decision, it said.
Plans for reorganization are currently under development and the company
intends to emerge from bankruptcy as quickly as possible. Plans will
include retaining the 10 pharmacies that are either currently generating
or will soon generate positive cash flow, according to the press
release.
Ex-CEO of Hawaiian May Face Civil Action
Federal regulators may recommend civil action against John Adams, former
CEO of Hawaiian Airlines, for possible violations of securities laws
related to the company's $25 million stock buyback in May 2002, the
Honolulu Advertiser reported. Since October, the Securities and
Exchange Commission has been investigating Hawaiian Holdings Inc., the
parent company of Hawaiian Airlines, and several of its officers. The
probe focuses on the stock buyback program. The airline bought back 5.88
million shares from stockholders at $4.25 per share, or 31 percent more
than what the stock was trading for at the time. Hawaiian's buyback
offer has been controversial, especially since Hawaiian filed for
bankruptcy five months after the offer. Adams, who engineered the
buyback, filed for bankruptcy when he could not reach an agreement with
Boeing to reduce the leases on Hawaiian's fleet, the newspaper
reported.
Separately, Thomas Fritsch, attorney for Hawaiian Holdings, said in a
statement that 'Hawaiian Holdings continues to believe that the actions
taken by its officers in connection with the tender offer were proper
and lawful.'
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