August 2, 2004
Recent Layoff Rate Was Highest Since
Early 1980s
Layoffs occurred at the
second-fastest rate on record during the first three years of the Bush
administration, a government report has found, the New York
Times reported. In the government's latest survey of how
frequently workers are permanently dismissed from their jobs, the layoff
rate reached 8.7 percent of all adult jobholders, or 11.4 million men
and women age 20 or older. That is nearly equal to the 9 percent rate
for the 1981-1983 period, which included the steepest contraction in the
American economy since the Great Depression.
Recession and weak economic
growth characterized most of the period from 2001 to 2003, and millions
of jobs disappeared. But while layoffs normally rise in hard times and
fall in prosperous years, the new survey published on Friday by the
Labor Department's Bureau of Labor Statistics added to the statistical
evidence that layoffs are more frequent now, in both good times and bad,
than they were in similar cycles a decade ago, the newspaper
reported.
Ex-Enron Exec Pleads Guilty
to Fraud
The former head of Enron
Corp.'s broadband Internet division pleaded guilty to one count of
securities fraud on Friday, becoming the latest official to confess to
crimes at the collapsed energy giant, Reuters reported. Kenneth Rice
agreed at a hearing to forfeit $13.7 million in cash and property and
cooperate with the government in its case against other Enron officials.
He faces up to 10 years in prison and an additional $1 million
fine. Rice was the co-chief executive of Enron Broadband Services from
July 1999 until July 2001, just five months before Enron filed for
bankruptcy.
Global Crossing Shares Rise
on Slim Purchase
Shares of Global Crossing Ltd.
rose sharply in trading on Friday after Mexican billionaire Carlos Slim
added to his holdings, Reuters reported. Friday was also the deadline
for Global Crossing to file amended financial statements with the U.S.
Securities and Exchange Commission (SEC) or face delisting by the
Nasdaq stock exchange. In April, Global Crossing revealed an accounting
problem and said it had to delay results for this year, restate 2003
earnings and review results from 2002.
According to a filing with the
SEC, the holding group for Slim and his family bought 136,000 shares on
Tuesday, bringing their stake in Global Crossing to 4.28 million shares,
or 10.7 percent of the company's equity. It was the third major purchase
of shares by Slim in as many trading days, the newswire
reported.
size='3'>Boutiques San Francisco to
Change Name
Boutiques San Francisco Inc.
plans to emerge from bankruptcy protection next week under a new
corporate name and with a clean balance sheet, the company said on
Friday, Reuters reported. The Boucherville, Quebec-based clothing
retailer will change its name to Groupe Les Ailes de la Mode
Inc. Founder Paul Delage Roberge will remain chairman of the board,
but the company will hire a new president and CEO.
Boutiques San
Francisco obtained court protection from its creditors in December,
burdened by declining sales and more than C$80 million ($60 million) in
debt and liabilities. It has since sold several banners and reduced
employees by 40 percent to 1,500, the newswire reported.
Applied Extrusion to Seek
Bankruptcy Protection
Applied Extrusion Technologies
Inc. said on Friday that it would file for bankruptcy protection as part
of an agreement in principle with six bondholders, Reuters reported. The
New Castle, Del.-based maker of polypropylene films said that as part of
the prepackaged recapitalization under chapter 11, it will not pay
interest on its 10-3/4 percent senior notes that became due on July
1.
Bankruptcy Judge Known As
Even-handed Arbitrator
When Portland Roman Catholic Archbishop John Vlazny filed for bankruptcy
in July, he tossed his Oregon archdiocese into a sea of
uncertainty, the Chicago Tribune reported. But he can be sure the
church will get a fair and full hearing from U.S. Bankruptcy Judge
Elizabeth Perris, court experts said.
Perris is known as a hard-working judge who has dedicated herself to her
career. She has been widely published on numerous bankruptcy-related
issues, written numerous articles and treatises on bankruptcy law, and
is a highly sought-after speaker at legal conferences and seminars. Read
the article at
href='http://www.chicagotribune.com/business/chi-0408010030aug01,1,4659625.st…'>
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UAL Re-examines Pacts with Lenders on
Financing
UAL
size='3'>is re-examining financing agreements concerning its aircraft
ownership and expects it will need to renegotiate one or more of the
agreements, the company said today, the online Wall Street Journal reported.
The review follows a move in June by the U.S. Air Transportation
Stabilization Board (ATSB) to refuse the company's request for financial
aid, according to a quarterly report filed Monday with the Securities
and Exchange Commission. As reported, the ATSB said it wouldn't consider
further appeals from the airline. UAL also cited the need for further
cost cuts. The company had previously negotiated with lenders to reduce
aircraft-ownership costs to better reflect current market
rates.