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March 11, 2005
Senate Approves House-friendly Bankruptcy Overhaul Bill
The Senate yesterday approved a bipartisan bankruptcy bill, clearing
the way for its likely enactment, CongressDaily reported.
Prior to passing the legislation, 74–25, the Senate adopted
several amendments House leaders were expected to support. One of those
provisions, sponsored by Minority Whip Richard Durbin (D–Ill.) and
approved, 99–0, would exempt disabled veterans whose debts arose
during military service. Another amendment, by Sen. Jim Talent
(R–Mo.), aims to make it more difficult for wealthy executives who
commit corporate fraud to shield property from creditors in
asset-protection trusts. The Senate also accepted an amendment by Sen.
Russell Feingold (D–Wis.) to make inflation adjustments to chapter
12 of the Bankruptcy Code, which governs farm bankruptcies.
Final passage of the legislation by the House is set for April, the
New York Times reported. The measure, which has the support
of President Bush, could take effect as soon as this fall. Many people
are expected to file for bankruptcy soon, before the legislation takes
effect, the newspaper reported. Read the
href='http://www.nytimes.com/2005/03/11/business/11impact.html'>full
article.
Specter Continues to Adjust Asbestos Measure Language
Senate Judiciary Chairman Arlen Specter (R–Pa.) plans to put
his long-negotiated asbestos bill in final form possibly the week
Congress returns from its Easter recess, he said yesterday,
CongressDaily reported. Committee Republicans said the
revised bill will incorporate changes suggested by GOP committee
members. Republicans leaving a meeting with Specter this morning said
they were encouraged by the talks and thought the bill ultimately will
win bipartisan support, the newswire reported.
Three More Banks Agree to Settle in WorldCom Investors’
Suit
Three banks, including Deutsche Bank, agreed yesterday to settle a
lawsuit by WorldCom investors who contended that the banks should have
known, as the bond underwriters, that WorldCom’s books were
fraudulent, Bloomberg News reported. Deutsche Bank agreed to pay $325
million. Earlier in the day, WestLB of Germany agreed to pay $75 million
and Caboto Holding of Italy agreed to a $37.5 million payment to settle
their liabilities in the lawsuit, the newswire reported.
Delta Says Bankruptcy Filing Is Possible
Delta Air Lines Inc. said yesterday it expects to report a
“substantial” loss this year and could seek bankruptcy
protection if conditions worsen, the Associated Press reported. In its
annual report, the airline said it doesn’t expect to have enough
cash coming in to cover leases, debt payments and other obligations,
forcing it to tap available cash and the final $250 million it borrowed
late last year from American Express Co.
Hawaiian Air Gets Approval for Reorganization Plan
A judge yesterday approved a reorganization plan for Hawaiian
Airlines, clearing the way for the carrier to emerge from bankruptcy as
early as next month, the Wall Street Journal reported.
Hawaiian Air, which filed for chapter 11 two years ago, said it expects
two remaining labor contracts to be ratified and a formal court order
ending the bankruptcy proceedings to be issued by early April.
Jurors in Ebbers Fraud Case Continue Their Deliberations
Jurors in the fraud trial of former WorldCom Inc. CEO Bernard Ebbers
ended their fifth day of deliberations without reaching a verdict, the
online Wall Street Journal reported. They are expected to
resume deliberations today.
Oregon Blocks Bid for Piece of Enron
Oregon regulators blocked a proposed $2.35 billion purchase of Enron
Corp. subsidiary Portland General Electric by private-equity firm Texas
Pacific Group, saying the deal was not in the public interest, the
Wall Street Journal reported. The commission also raised
concerns about a sale of the utility to a “short-term
owner.” Texas Pacific, an investment partnership that specializes
in turning around troubled companies, planned to either sell the utility
or take it public in a few years, the newspaper reported.