src='/AM/Images/headlines/headline.gif' />
November 29, 2004
Holiday Shoppers off to a Fast Start
Holiday shoppers spent 10 percent more Friday than they did a year
ago, according to early reports, but Wal-Mart Stores Inc. dampened hopes
for a strong start to the key retail season by cutting its November
sales forecast by more than half, the Washington Post
reported. Consumers spent about $8 billion at the nation’s malls
and stores the day after Thanksgiving, the traditional start of the
holiday shopping season, compared with $7.3 billion a year ago,
according to the industry research firm ShopperTrak. Bill Martin,
ShopperTrak’s founder and executive vice president of sales,
called the results “unusually strong” and credited the gain
to this year’s early-bird deep discounts, which created pre-dawn
lines at many stores across the country, the newspaper reported.
Debt in Private-Equity Deals May Pose Risks to Investors
The past few months have been good to private-equity investors,
thanks to the continued generosity of the debt markets, the Wall
Street Journal reported. In recent months, private-equity funds
have added more debt to the debt-laden companies they control, primarily
to pay themselves dividends on their investments. But the boom times for
private-equity funds may soon become trouble for investors. Many
analysts worry that the debt that these private-equity companies have
taken on in recent months may be built on optimistic economic
assumptions and continued low interest rates. Read the full article at
www.wsj.com (subscription
required).
Judge Bars Repossession of United Airlines Planes
A U.S. federal bankruptcy court judge has blocked a group of
creditors from repossessing up to 14 airplanes from UAL Corp.’s
United Airlines, saving the bankrupt carrier tens of millions of
dollars, the Associated Press reported. Judge Eugene Wedoff issued a
temporary restraining order Friday barring the group, represented by the
Chicago-based law firm Chapman & Cutler LIP, from seizing up to
eight Boeing 767s and six 737s. The group of financiers, which controls
about one-third of Unity’s fleet, had threatened to seize the
planes as early as Dec. 1 because of an impasse over their leases, the
newswire reported.
Canadian Court Extends Deadline for Stelco Bidders
An Ontario court decided on Friday to extend the deadline for
submissions from companies interested in making a bid for Stelco Inc.,
Canada’s biggest steelmaker, Reuters reported. The deadline, which
was to expire on Friday, was extended until Dec. 1 to accommodate
potential delays because of the U.S. Thanksgiving holiday on Thursday.
The court’s ruling comes one day after it postponed a decision on
a bailout plan for Stelco as potential suitors expressed concern over
the C$900 million ($762 million) deal with Deutsche Bank AG, the
newswire reported.
US airways
US Air, GE Reach Deal on Plane Leases
Bankrupt US Airways Group Inc. said Friday it has reached a new
aircraft lease and financing deal with General Electric Co. that could
extend the carrier’s lifeline further into next year, if it could
quickly secure new cost cuts, Reuters reported. The agreement between US
Airways and its largest creditor proposes to save the airline $140
million during the remainder of its bankruptcy, the newswire
reported.
US Airways Flight Attendants Gear Up for Strike
Flight attendants at bankrupt US Airways Group Inc. are gearing up
for a possible nationwide strike, the Association of Flight Attendants
said on Friday, Reuters reported. The union has mailed out more than
5,000 strike authorization ballots to its members, threatening to launch
a strike should the airline get its employee agreements negated by the
federal bankruptcy court.
W.R. Grace Says Grand Jury Indictment Likely
W.R. Grace & Co. said on Friday it was likely to be indicted
during the first quarter of 2005 by a federal grand jury investigating
its former vermiculite mining and processing activities in Libby, Mont.,
Reuters reported. The bankrupt specialty chemicals company said in a
filing with the U.S. Securities and Exchange Commission that an
indictment could be averted if it reaches a resolution with the
government.