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March 10, 2006
id='1'>UAW Disputes Report of Near Agreement with
w:st='on'>
size='3'>Delphi
GM
The United Auto Workers
disputed a report in Thursday’s
size='3'>Wall Street Journal that bankrupt
auto-parts supplier Delphi Corp. and its former parent General Motors
Corp. are 'nearing'' a cost-cutting deal with the union, according to
Bloomberg News yesterday. The Journal, citing unidentified
people familiar with the talks, reported that the three parties were
approaching an accord on broad points that would encourage early
retirements through buyouts. 'There are many, many significant issues to
be resolved,'' the UAW said in a statement today. GM is working
with
size='3'>Delphi
to avoid a costly strike that Morgan Stanley analyst Jonathan Steinmetz
said could bankrupt the world's largest automaker. The union has
threatened to walk out if Delphi Chief Executive Officer Steve Miller
succeeds in getting a bankruptcy judge to scrap current contracts so he
can slash wages and cut jobs.
href='http://www.bloomberg.com/apps/news?pid=10000087&sid=auXvgas.gsi8'>Read
more.
w:st='on'>
id='2'>Utah
size='3'> Bankruptcy Filings Fall by 79 Percent in
February
Bankruptcy filings in Utah fell
to 311 in February, a 79 percent drop from 1,503 filings made during the
same month in 2005 but up slightly from 233 filings made in January
2006, according to the U.S. Bankruptcy Court for the District of Utah,
the Salt Lake City Desert News reported yesterday. Filings for
the first two months of 2006 decreased by 81 percent compared with the
same two-month period in 2005.
href='http://deseretnews.com/dn/view/0,1249,635190318,00.html'>Read
more.
id='3'>Riverstone Pleads for $6.55 Million Bonus
Package
With employee morale at a
delicate point, bankrupt telecommunications company Riverstone Networks
Inc. has asked the court to approve a $6.55 million bonus package
designed to retain key employees as the company prepares for its
upcoming asset sale,
size='3'>Portfolio Media reported yesterday.
Riverstone filed the request in U.S. Bankruptcy Court in
size='3'>Delaware
Wednesday, claiming in court papers that the benefits will help keep
employee spirits high and guarantee the closing of an asset sale. The
request comes almost two weeks after the U.S. Bankruptcy Judge
Christopher Sontichi decided to allow Riverstone to auction off its
assets amid shareholder objections and creditor concerns.
If Riverstone fails to
continue the bonus programs, the suspension will 'unjustly penalize
those individuals who have been working the hardest to ensure that the
maximum value is received for the assets pursuant to the sale,' said the
company in its filing. The telecommunications company is also seeking
permission to stretch its employee bonus program to include a
discretionary bonus pool of up to $750,000, enabling Riverstone to keep
non-insider employees. The case is
size='3'>Riverstone Networks Inc., case number
06-10110-CSS, in the U.S. Bankruptcy Court for the District of
Delaware.
id='4'>Deadline Approaches for Abuse Claims Against Spokane
Diocese
People who alleged they were
abused have until close of business to submit 'proof of claims' to
the U.S. Bankruptcy Court handling the Spokane Diocese bankruptcy
reorganization, the Associated Press reported yesterday. The diocese
already has offered nearly $46 million to 75 victims. An equal number
could file claims and would negotiate settlements, or take the diocese
to court, after Friday's deadline. The diocese is still looking for ways
to pay the settlements, including selling and mortgaging churches and
other church property.
href='http://www.kxly.com/news/index.php?story_id=918&view=text'>Read
more.
face='Times New Roman' size='3'>
id='5'>Acadia
size='3'> Asks Court to Cut Deal with Calpine
Acadia Power Partners LLC
has asked a bankruptcy court to order Calpine Corp. to pay more
than $4.7 million or permit it to sell its power to other
utilities, Portfolio
Media reported yesterday. Acadia Power, a
joint venture between Cleco Corp. and Calpine divisions, claimed
Calpine’s bankruptcy has put it in a state of financial distress,
according to court documents. Acadia is looking for Calpine to make good
on its dues or throw out the contracts so
w:st='on'>
size='3'>Acadia
energy to another firm. Tied down by two power contracts with
Calpine,
size='3'>Acadia
of its energy to a Calpine unit. The contracts require Acadia to operate
a gas-fired power plant based in
w:st='on'>
size='3'>Eunice
w:st='on'>
size='3'>La.
supplies it with natural gas.
face='Times New Roman' size='3'>Acadia
size='3'>, a Louisiana-based power generator, estimated that it is
losing about $176,434.80 each day, according to court documents. If the
court decides that Calpine must pay,
face='Times New Roman' size='3'>Acadia
size='3'>requested the court to enforce Calpine to reject its contracts
within 60 days. The case is
size='3'>Calpine Corp., bankruptcy petition
number 01-30923, in the U.S. Bankruptcy Court for the Northern District
of California.
id='6'>Congoleum
w:st='on'>
size='3'>Hopes Court
size='3'>Approves Insurance Settlement
Congoleum Corp., the struggling
flooring manufacturer, is hoping a bankruptcy court will sanction a huge
insurance settlement designed to aid the company’s efforts to pay
off the thousands of
asbestos-related injury claims that drove the company to seek chapter 11
protection, Portfolio
Media reported yesterday. Harper Insurance
Ltd., formerly known as Turegum Insurance Co., will pay out $1.4 million
to fund the company’s trust, which was established to resolve
asbestos claims. If a bankruptcy judge agrees to the terms of the
settlement, it would effectively halt Congoleum’s suit against
Harper in a
face='Times New Roman' size='3'>New
Jersey
the deal go through, Harper would be among several other
insurers who
have settled with the sheet and tile maker, including groups such as
American International Group Inc., Lloyds of London and Federal
Insurance Co. A hearing to discuss the terms of the settlement is slated
for April 4 at the U.S. Bankruptcy Court in
w:st='on'>
size='3'>Trenton
w:st='on'>
size='3'>N.J.
in the case are due by March 27. The case is Congoleum
Corp., case number 03-51524, in the U.S.
Bankruptcy Court of New Jersey in
w:st='on'>
size='3'>Trenton
size='3'>.
id='7'>Creditors Win Bid to Investigate Musicland Executives,
Board
A request by bankrupt Musicland
Holding Corp.'s committee of unsecured creditors to investigate the
company for breaches of fiduciary duty, misleading public statements
and fraudulent
transfers has been approved by a federal judge, allowing the creditors
to seek documents from high-level executives and board members of the
beleaguered music retailer, according to
size='3'>Portfolio Media yesterday. The ruling
also gives creditors authority to obtain documents from Musicland's
lender, owner, trade lien creditors and former owner. Particularly
concerning, said the creditors, was a $25 million loan made in August
2005 to Musicland by lender Harris Bank N.A. Musicland repaid the loan
immediately before filing for bankruptcy in January 2006. Creditors are
now questioning whether certain directors may have breached their duty
of loyalty by directing Musicland to prepay Harris Bank in order to
ensure that the Sun Entities would not be called upon to honor their
guaranty.
id='8'>GM Removes Bid for Spot on
w:st='on'>
size='3'>Delphi
Panel
In the face of widespread
opposition, General Motors Corp. has abandoned its earlier request to
join the creditors' committee of bankrupt auto parts supplier Delphi
Corp, leaving it the
only constituent without a seat, Portfolio Media reported
yesterday. The company filed the withdrawal late Wednesday in the U.S.
Bankruptcy Court in
w:st='on'>
size='3'>Manhattan
objections entered by the creditors' committee and other parties as the
primary reason for the retreat. The resistance showed that GM is clearly
“viewed as an adversary,' and as a result, a seat on the committee
would be 'counterproductive,' said the company in court documents. GM,
Delphi's former parent and one of its largest creditors, made a bid to
secure a seat on the creditors' committee back in mid-February,
following in the footsteps of the United Auto Workers union and the
Pension Benefit
size='3'>Guaranty Corp. The case is
size='3'>In re Delphi Corporation, case no.
05-44481, in the
w:st='on'>
size='3'>U.S.
face='Times New Roman' size='3'> Bankruptcy Court in the Southern
District of New York.
Dana
Reveals Turnaround Executives’ Pay
Two newly appointed
executives charged with guiding Dana Corp. through its bankruptcy will
each receive $125,000 a month in pay, the Toledo
Blade reported yesterday. At least 19 others
helping from the same
w:st='on'>Michigan
size='3'>turnaround firm will be paid $300 to $670 an hour. The
compensation was disclosed in filings in U.S. Bankruptcy Court in
size='3'>New York
Dana filed for chapter 11 protection last Friday because of increased
costs and struggling sales. Plus, the filings show, AlixPartners LLC of
Southfield, Mich., will receive a $4 million 'success' fee for providing
the executives. It will be paid once either Dana's bankruptcy exit plan
is approved or the court orders all or most of Dana's assets sold.
AlixPartners was one of two restructuring firms hired to assist
the
size='3'>Toledo
supplier in working through its bankruptcy and was paid a $400,000
retainer fee. The other, Miller Buckfire & Co. LLC, of
York
monthly advisory fee and was paid a $250,000 retainer court documents
state. It will get $12.5 million upon either a successful
bankruptcy-exit plan or the sale of assets. It also will get fees for
financing received.
href='http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20060309/BUSINESS…'>Read
more.
id='10'>DrugRisk Solutions Seeks Bankruptcy
Protection
DrugRisk Solutions LLC of
Schuylerville, N.Y., has filed for chapter 11 bankruptcy protection
after failing to find enough customers to buy its drug-testing product,
the Albany Times Union reported today. In the filing Wednesday
in U.S. Bankruptcy Court in
w:st='on'>
size='3'>Albany
company claimed $1.2 million in liabilities and $482,000 in assets.
DrugRisk is continuing to look for new investors or other sources of
money, said lawyer Richard H. Weiskopf of Pasquariello & Weiskopf
LLP of Albany. He said the company expects to receive $100,000 from a
lender for immediate expenses.
href='http://timesunion.com/AspStories/storyprint.asp?StoryID=459158'>
face='Times New Roman'
size='3'>http://timesunion.com/AspStories/storyprint.asp?StoryID=459158
.
id='11'>Texas Oil Company Declares Bankruptcy
A
w:st='on'>Texas
oil company run by the son of the late
w:st='on'>
size='3'>Denver
Marvin Davis has filed for bankruptcy protection and says a new set of
investors will purchase the business, Associated Press reported
yesterday. Company officials said Wednesday that the bankruptcy was
filed to resolve a
face='Times New Roman' size='3'>Davis
family dispute and that three private-equity investors
will purchase Houston-based Davis Petroleum Corp. for $150 million. The
deal is subject to bankruptcy-court approval. Under the new ownership
and capitalization, the company will increase its exploration and
drilling in the
size='3'>Rockies
president and chief executive of the company and a son of Marvin Davis,
who died in 2004. Under the chapter 11 bankruptcy filing, all creditors
of Davis Petroleum will be paid in full, company officials said. The
filing shows total debt range between $50 million and $100 million.
Under the reorganization plan, the company's new majority owners will be
Evercore Capital Partners LP, Red Mountain Capital Partners and Sankaty
Advisors.
href='http://news.yahoo.com/s/ap/20060310/ap_on_bi_ge/davis_petroleum_bankrup…'>Read
more.
id='12'>Enron Official Concedes Little Evidence of Illegal Side
Deals with Former Chief Executive
Andrew S. Fastow conceded
on Thursday that he had little proof that Enron's former chief, Jeffrey
K. Skilling, made secret side agreements with him to purchase company
assets, the New York
Times reported today. Fastow also struggled to
maintain the existence of a handwritten 'Global Galactic' document that
he has said memorialized the illicit side deals that helped him reap
tens of millions of dollars through his dual role as chief financial
officer of Enron and general partner of off-the-books partnerships.
Daniel Petrocelli, Skilling's lead lawyer, led Mr. Fastow to acknowledge
that the side deals he alleged were made verbally and were not legally
enforceable and that Fastow had no signed documentation by Skilling or
witnesses to prove the deals had been made.
href='http://www.nytimes.com/2006/03/10/business/businessspecial3/10enron.htm…'>Read
more.
Airlines
id='13'>United Bankruptcy Costs More Than $335
Million
United Airlines’
three-year bankruptcy restructuring, the largest and longest in the
industry’s history, will end up costing the carrier more than $335
million in fees to lawyers and consultants, court documents show,
according to the Associated Press yesterday. The fees include $99.8
million charged by the airline’s lead law firm during the 38-month
process, Chicago-based
w:st='on'>
size='3'>Kirkland
Ellis LLC, pending formal approval by U.S. Bankruptcy Court. A
spokeswoman for United parent UAL Corp., Jean Medina, said Thursday that
the heavy expenses were necessary. She noted that the
w:st='on'>Elk Grove
Village
annual costs by $7 billion and debt by $13 billion in the restructuring.
Kirkland & Ellis charged $93.7 million in fees and $6.1 million in
expenses from Dec. 9, 2002, through Jan. 20, when United’s
bankruptcy exit plan won final court approval. Those numbers will rise,
along with the total, by millions more as law firms continue to make
filings and court appearances in wrapping up loose ends in the
case. James
Sprayregen, the Kirkland & Ellis partner who was
United’s lead bankruptcy lawyer, performed $3.45 million worth of
services, the firm said in a court filing Monday. He charged United for
4,419 hours in the case, billing at a top rate of $850 an hour. The No.
2 United lawyer in the case, David Seligman , billed
for $5.5 million in fees — working on the case 10,231 hours, or an
average of 62.4 hours a week.
href='http://msnbc.msn.com/id/11748205/'>Read more.
id='14'>Woes of Airline Industry Has Pilots Facing Changing Career
Outlook
As half the seats in the
nation's airliners are run by companies either in bankruptcy or limping
out of it, pilots, whose career used to be regarded as one step down
from astronauts, now face a changing world, the
face='Times 

New
Roman' size='3'>New York Times reported today.
While their pay and pensions have been cut, pilots find they must work
more hours to earn them. In another concession to the airlines, their
days are interrupted more than ever by long hours of unpaid idleness.
'They kind of bleed us out,' an American Airlines captain said, on
condition he not be identified for fear of losing his job. Pilots for
major airlines said they expected to be fired if they were publicly
candid on the new challenges of their jobs. Not everyone agrees that the
longer working schedule is a problem. 'It's hard for me to feel sorry
for them,' said Capt. Jeffrey R. Hefner, the safety chairman of the
union that represents pilots at Southwest Airlines, who have always
flown longer hours than pilots at older airlines. 'Historically, this
has been a really cushy job once you get to the majors. You make a lot
of money and you don't have to fly a lot. But there had to be a market
balancing at some point.'
href='http://www.nytimes.com/2006/03/10/politics/10pilots.html?pagewanted=pri…'>Read
more.
id='15'>Aloha's CEO Visualized Exit from
Bankruptcy
Aloha Airlines’ CEO
David Banmiller said that high fuel prices and getting exit financing
with the large number of airlines in bankruptcy were the greatest
challenges to the airline emerging from bankruptcy, USAToday
reported today. Aloha Airlines emerged from bankruptcy protection last
month after filing for chapter 11 on Dec. 30, 2004. A month before
filing, the company hired David Banmiller, a 30-year industry veteran,
as its CEO to oversee the reorganization. Banmiller had been COO of
Air
face='Times New






Roman'
size='3'>Jamaica
size='3'>and earlier in his career had overseen bankruptcies at Pan Am
and Sun Country Airlines. During its bankruptcy stint, Aloha shed
pension programs by handing them over to the government insurer, cut
employee pay and reduced flying capacity by 20 percent. It also
eliminated $65 million of debt and $75 million in annual operating
expenses while keeping nearly all of its jobs.
href='http://www.usatoday.com/money/biztravel/2006-03-09-aloha-usat_x.htm'>Read
more.
International
id='16'>Banks File Bankruptcy Suit Against Russian Oil
Company
Creditor banks have filed
a bankruptcy suit against the stricken Russian oil company Yukos, the
Interfax news agency reported Friday. The news comes against the
background of reports that executives running the operations of the
company in
face='Times New Roman' size='3'>Moscow
have refused to accept the authority of Yukos' senior
management, which has run the company from self-imposed exile for more
than a year. Yukos, once the nation's biggest oil producer, is
struggling to stay afloat. International creditors are seeking to
retrieve nearly $500 million (420 million euro) from the company, while
its former main production unit, now owned by state oil company Rosneft,
is suing it for billions of dollars for alleged mismanagement. Yukos has
said that it still has to pay $6.3 billion (5.3 billion euro) of its
original $27.5 billion (23 billion euro) tax bill and is disputing a new
$3.5 billion (2.95 billion euro) bill for 2004.
href='http://www.businessweek.com/ap/financialnews/D8G8MD200.htm?campaign_id=…'>Read
more.
href='http://www.businessweek.com/ap/financialnews/D8G8MD200.htm?campaign_id=…'>