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November 23, 2004
FAO Schwarz Will Open New York Store on Thanksgiving
FAO Schwarz will open its redesigned flagship store on New
York’s Fifth Avenue on Thanksgiving Day, in time for the beginning
of the U.S. holiday shopping season, Bloomberg News reported. The store
had been closed since Jan. 31, spokesman Burns Patterson said. FAO Inc.,
the company that owns the store, filed for protection from creditors in
December after exiting bankruptcy about eight months before. The Nov. 25
opening will follow that of the FAO Schwarz’s Las Vegas store,
which reopened on Oct. 22, the King of Prussia, Penn.–based
retailer said in a statement. A subsidiary of D.E. Shaw & Co. bought
FAO Schwarz this year for $41 million. FAO Schwarz sought bankruptcy
protection in December 2003, the newswire reported.
Trump Hotels Begins Recapitalization
Trump Hotels & Casino Resorts on Monday said it has begun to
recapitalize after a bankruptcy filing on Sunday that would allow the
company to restructure debt and overhaul casinos, Reuters reported. The
company said it has arranged for $100 million in interim financing from
Beal Bank. Under a restructuring plan bondholders will own about
two-thirds of the company. Donald Trump’s stake would shrink to
about 27 percent from 56 percent, but he will remain chairman and CEO.
This marks the second bankruptcy for Trump’s casino empire, the
newswire reported.
Mississippi AG Threatens Charges in MCI Tax Flap
The attorney general of Mississippi is considering filing criminal
charges or a civil lawsuit against MCI Inc. and adviser KPMG, a
spokesman said on Monday, Reuters reported. MCI last month asked a
federal court to give it until February to work out a settlement with
more than a dozen states who want as much as $1.5 billion in back
taxes.
The coalition of states has accused KPMG of creating an illegal tax
shelter for MCI during its heyday as WorldCom, before it filed the
largest bankruptcy in U.S. history. Mississippi has said MCI owes some
$1 billion in back taxes when interest and penalties are included, the
newswire reported.
Calyon Cuts Delta Air to “Neutral” from
“Add”
Calyon Securities on Monday lowered its rating on Delta Air Lines
Inc. to “neutral” from “add,” noting that most
investors already have considered improvements to the carrier’s
financial outlook, Reuters reported. “We believe most of the good
news regarding the company avoiding bankruptcy is now factored into the
stock price,” Calyon analyst Ray Neidl wrote in a research note.
Earlier this month, Delta’s pilots ratified a $1 billion
concession package that helped the airline avoid an imminent bankruptcy
filing, the newswire reported.
Court Gives Stelco, Deutsche Extension For Deal
A Canadian court postponed making a ruling on Monday on a Deutsche
Bank refinancing deal for Stelco Inc., giving the two firms until
Thursday to refine their proposal, Reuters reported. The extension comes
after Stelco, which entered bankruptcy protection in January, lost a
contract on Monday to supply steel to its biggest customer, General
Motors Corp. The C$900 million ($756 million) bailout from Deutsche Bank
was slammed by Stelco’s union, which says it offers no long-term
commitment to the steelmaker’s future.