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April 7, 2005
Growth Pace Worldwide Is Expected to Slow in ’05
The World Bank and the International Monetary Fund predicted
yesterday that global economic growth would slow significantly in 2005,
and they warned that the United States’ ballooning trade
imbalances could disrupt world markets if foreign investors stop buying
American debt, the New York Times reported. “Global
expansion has become less balanced, with global growth continuing to be
unduly dependent on the United States and China,” said Rodrigo de
Rato, managing director of the International Monetary Fund, in a speech
at Georgetown University, the newspaper reported.
House to Consider Bankruptcy Bill Next Week
The House is expected to take up a bill to overhaul the
nation’s bankruptcy laws next week, House Republican leaders said
yesterday as they laid out their eight-week legislative agenda,
CongressDaily reported. In the coming weeks the House will
also attempt to move the long-stalled energy bill and tort reform.
House Committee Defeats PBGC Resolution
The House Education and the Workforce Committee defeated a resolution
yesterday sponsored by Education and the Workforce ranking member George
Miller (D–Calif.) asking the nation’s pension insurer to
disclose the status of certain companies’ pension plans,
CongressDaily reported. Under an agreement with Education
and the Workforce Chairman John Boehner (R–Ohio), the committee
will report the resolution unfavorably, then Miller and Boehner will
write a joint letter seeking much of that information, according to a
Miller spokesman. The spokesman said Miller wanted the Pension Benefit
Guaranty Corp. to make public the status of pension plans that are in
the worst financial shape. Under the pact with Boehner, Miller agreed
the information would not be shared with anyone outside Congress.
“Workers should have a right to know what the status of their own
pension plan is,” a Miller spokesman said. “But under the
agreement, at least Congress will have good information about how
pensions are doing.” Boehner is drafting legislation that would
overhaul how companies fund pension plans.
Ninth Circuit Names New Bankruptcy Judge for Central District
Costa Mesa attorney Theodor C. Albert has been named as a bankruptcy
judge for the Central District of California by the Ninth U.S. Circuit
Court of Appeals, a court official said yesterday, MetNews reported.
Albert will serve a 14-year term in office, beginning June 1, 2005. He
succeeds Judge Arthur Greenwald, who is stepping down from the Central
District bankruptcy bench after 16 years of service.
California Justices to Consider Credit Card Holders’ Ability
to File Class Actions
Today the California Supreme Court will hear arguments in Los Angeles
to determine whether credit cards’ arbitration clauses that ban
class actions are un-conscionable under California law, the
Recorder reported. State appeal courts have split on the
issue, with one ruling that such a contract “violates fundamental
notions of fairness,” and the other holding that the Federal
Arbitration Act prevents states from voiding most contract terms. Read
the full article at www.law.com.
MCI
Qwest Refuses to Concede in Bid for MCI
Qwest Communications is not giving up its efforts to stop Verizon
Communications from acquiring MCI, the New York Times
reported. Qwest has requested MCI’s shareholder list, according to
industry executives briefed on the discussions, in a move that could
lead to a protracted proxy battle that Qwest hopes will convince those
holding a majority of MCI’s shares of the superiority of its
bid.
Mississippi Wants MCI Tax Case in State Court-filing
The state of Mississippi, which is seeking $1.5 billion in back taxes
and penalties from WorldCom, asked a U.S. Bankruptcy Court yesterday to
move the case to Mississippi, where the company was formerly
headquartered, Reuters reported. Mississippi is one of more than a dozen
states suing WorldCom, now called MCI, in federal bankruptcy court over
a royalty program they say enabled WorldCom to shield $24 billion of
income from state taxes.
Enron to Issue Portland General Electric Shares
Enron Corp. said yesterday that it would issue shares in Portland
General Electric Company to creditors, after Oregon’s utility
regulator blocked a sale to Oregon Electric Utility, Reuters reported.
The Houston-based bankrupt energy trader said in a statement that the
blocked sale meant it would now revert to the issue approved under its
bankruptcy plan.
Bankruptcy Judge Orders Racing Services Founder to Return
$64,000
A bankruptcy judge has ordered the founder of defunct Racing Services
Inc. to return about $64,000 in company assets, the Associated Press
reported. Susan Bala, of Fargo, is awaiting sentencing April 29, on
charges of operating an illegal gambling site. Federal Bankruptcy Judge
William A. Hill ordered Bala on Tuesday to return a $50,000 loan to The
Guardian Life Insurance Co. Bala used Racing Services money to buy a
$50,000 life insurance policy in 1995, and borrowed against the
policy’s full cash value in November, months after her simulcast
sports-betting company filed for bankruptcy, said Kip Kaler, the
bankruptcy trustee representing Racing Services’ estate, the
newswire reported.