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March 21, 2005
U.S. Consumer Sentiment Dips to 92.9
The University of Michigan consumer sentiment index fell to 92.9 in
early March from 94.1 in February, the reports said, CBS
MarketWatch reported. The index fell for the third straight month
to the lowest reading since November. The index has been essentially
flat for a year. Economists were expecting the index to rise to about
94.6, according to a survey conducted by MarketWatch.
Bankruptcy’s Next Chapter
A Washington Post article on the bankruptcy bill reports
that despite the bill’s attempt at specificity in tightening
debt-relief rules for individuals, much remains open to argument and
interpretation. Read the full article at
href='http://www.washingtonpost.com/wp-dyn/articles/A48993-2005Mar19.html?ref…'>www.washingtonpost.com/wp-dyn/articles/A48993-2005Mar19.html?referrer=e….
Separately, the credit counseling industry released a press release
on Sunday stating that while the bankruptcy bill addresses the
regulation of credit counseling for consumers seeking to file for
bankruptcy, the bill does not address consumers using credit counseling
agencies for financial assistance outside of bankruptcy. Read the
release at
href='http://www.prweb.com/releases/2005/3/prweb219846.php'>www.prweb.com/releases/2005/3/prweb219846.php.
Credit Counselors See More Elderly Drowning in Credit Card Debt
More and more senior citizens and aging baby boomers are accruing
higher credit card debt, a trend that is expected to continue as
retirement funds fall short and the cost of prescription drugs goes up,
credit experts say, the Associated Press reported. Read the full article
at
href='http://www.telegram.com/apps/pbcs.dll/article?AID=/20050321/APN/5032105…'>www.telegram.com/apps/pbcs.dll/article?AID=/20050321/APN/503210536.
ABB Reaches Agreement to Resolve Asbestos Claims
ABB Ltd. said today it has reached an agreement to reorganize two of
its subsidiaries to resolve asbestos claims against the company, the
Wall Street Journal reported. The Swiss–Swedish
electrical engineering giant will pay an additional $232 million into a
trust fund to settle outstanding claims under an amended plan to
reorganize its Combustion Engineering and Lummus subsidiaries, the
company said in a statement.
Ex-WorldCom Directors Reach Pact
Eleven former board members of WorldCom Inc. agreed to pay $20.2
million out of their own pockets to settle a lawsuit related to the
company’s accounting fraud, reviving a plan that was scuttled
because of a legal technicality, the Wall Street Journal
reported. The agreement, reached late Friday, is the latest in a series
of settlements in a class-action case led by New York State Comptroller
Alan Hevesi. The suit, scheduled for trial later this month, seeks
compensation from underwriters, former board members and the telecom
company’s former auditor Arthur Andersen LLP, claiming they failed
in their duties to oversee the company and scrutinize its books.
Air Canada Parent Files Prospectus to Raise C$600 Million
Air Canada parent ACE Aviation said today it filed preliminary
prospectuses to offer shares and convertible senior notes to raise about
C$600 million, Reuters reported. The proceeds from the offerings will be
used mainly to repay debt of C$540 million under an exit credit facility
with General Electric unit GE Capital of C$2 billion, resulting in net
debt of about C$4 billion.
Krispy Kreme Sued Over Retirement Plans
Krispy Kreme Doughnuts Inc. on Friday said Krispy Kreme Doughnut
Corp. has been sued by people who were part of its retirement and profit
sharing plans, Reuters reported. The plaintiffs argue Krispy Kreme
failed to prudently manage the plans’ assets by continuing to
offer company common stock as an investment option and by holding a
large percentage of the plans’ assets in the company’s
common stock, among other complaints, Krispy Kreme said in a
statement.
Trump Hotels’ Fourth-quarter Loss More than Doubles
Trump Hotels & Casino Resorts Inc. on Friday said its
fourth-quarter loss more than doubled from a year earlier as it
reorganized the company, Reuters reported. The company, which is
best-known for its Atlantic City casinos and is in bankruptcy court,
posted a loss of $99.8 million or $3.34 per share, compared with $40.9
million or $1.37 per share a year earlier.
U.S. Judge Denies Latest YUKOS Motion
A U.S. District Court judge on Friday denied a request by Russian oil
company YUKOS to issue legal protection for its remaining assets while
the company appeals the dismissal of its bankruptcy case, Reuters
reported. A U.S. bankruptcy judge last month threw out Moscow-based
YUKOS’ claim for bankruptcy protection, ruling the U.S. court did
not have jurisdiction in the case. The company has filed notice it would
appeal that decision.
Winn-Dixie $800 Mln Credit Line Approved in Bankruptcy
Winn-Dixie Stores Inc. on Friday said a federal bankruptcy judge
granted final approval for its $800 million debtor-in-possession credit
facility, Reuters reported. The company said the facility from Wachovia
Bank NA replaces a $600 million credit line. Winn-Dixie filed for
chapter 11 protection on Feb. 21 after succumbing to stiff competition
from Wal-Mart Stores Inc. and others.
Intercell Files for Bankruptcy Protection
Intercell International Corp. on Friday said it has filed for
bankruptcy protection after a ruling by a small-claims court on wage
claims against an Intercell subsidiary that builds wireless data
networks, Reuters reported. Intercell said it filed the chapter 11
petition in Colorado bankruptcy court and said it will submit a plan of
reorganization to continue future operations.
FTC Wants AmeriDebt to Refund $172 Million
The Federal Trade Commission (FTC) wants the man behind the creation
of AmeriDebt to return $172 million in fees paid by its customers over
the years, claiming that he operated the nonprofit credit-counseling
agency as a for-profit venture to enrich himself and his friends, the
Baltimore Sun reported. Also, the Internal Revenue Service
intends to revoke AmeriDebt’s tax-exempt status and seek taxes
going back to January 2000, according to court documents filed by the
FTC in federal court in Greenbelt, Md., yesterday evening.
Maine Tannery Files for Chapter 11 Bankruptcy
Irving Tanning Co. announced Friday it has filed for chapter 11
bankruptcy relief to deal with a liquidity crisis arising from a sudden
loss of working capital, the Associated Press reported. The 80-year-old
leather manufacturer, with a work force of about 250, said the filing is
designed to provide time to complete discussions with an investor group
seeking to acquire the company, provide new capital and continue its
operations.