July 8, 2004

Class Action Compromise
Legislation 'May Be Close To Death,' Dodd Says



Sen. Christopher Dodd (D-Conn.) said class action legislation 'may be
close to death,' after meetings on Wednesday between Senate leaders and
two Democratic co-sponsors failed to yield an agreement on nongermane
amendments, CongressDaily reported. Dodd, a co-sponsor of
the compromise bill to overhaul the rules governing class action
lawsuits, expressed his position to his colleagues shortly after he and
Sen. Thomas Carper (D-Del.), another co-sponsor, met with Majority
Leader Bill Frist (R-Tenn.) and Majority Whip Mitch McConnell (R-Ky.)
and then with Minority Leader Tom Daschle (D-S.D.). 'It may not even get
a chance to be debated, much less acted on,' Dodd added. Carper held out
more hope for the bill's prospects. Speaking to reporters after the
meetings, Carper noted his water bottle was 'at least half-full,' and
said Frist and Daschle probably could break the impasse if they would
just 'sit down and talk it through between the two of them.'

Enron Founder Kenneth Lay Surrenders to FBI
in Houston

Enron Corp. founder and former Chairman
Kenneth Lay has surrendered to the FBI in Houston, the Wall Street Journal reported.  A grand jury
returned a sealed indictment against Lay on Wednesday, two-and-a-half
years into a methodical investigation that has produced charges against
some of Lay's once most highly trusted lieutenants, the online newspaper
reported.

Court Approves Footstar Deal on Ex-CEO
Termination

Bankrupt footwear retailer
Footstar Inc. yesterday said the bankruptcy court approved a settlement
that the termination of former Chairman and CEO J.M. 'Mickey' Robinson
was not 'for cause,' Reuters reported. Robinson was replaced in
September 2003 after an internal investigation found accounting errors
and the management failed to properly communicate with auditors, the
company had said in September. Footstar said in November 2003 that
Robinson's termination was for cause.



Supervalu Shares Fall On Analyst
Downgrade

Shares of Supervalu Inc. fell
sharply on Wednesday after an analyst cut his rating on the stock to
'underweight' from 'neutral,' citing prospects of a tough trading
climate for the food wholesaler, Reuters reported. Stephen Chick, an
analyst at J.P. Morgan, said in a research note that valuations on
Supervalu shares looked deceiving, while the market's profit forecasts
could eventually prove too high. He said Supervalu was arguably coming
off a favorable year competitively for its food distribution business,
benefiting in part from the bankruptcy of former rival Fleming Cos. Inc.
But among major concerns likely to weigh on Supervalu in the new year,
Chick said, was an increasing rate of distribution customer attrition,
which would weigh on profitability and wholesale sales volume, the
newswire reported.

Kaiser Says Gramercy/KJBC Sale
On, Awaits Court Approval

Kaiser Aluminum Corp. said Wednesday it intends to
sell its Gramercy, La., alumina plant and a 49 percent stake in a
Jamaican bauxite operation to a joint venture between Century Aluminum
Co. and Canada's Noranda Inc. after failing to receive any competing
bids for the assets, Reuters reported. The transaction was originally
announced in May but was held up to await U.S. court approval as well as
a potential auction should qualified bids emerge before July 6. 'At the
close of business on July 6, we did not receive any such competing
bids,' said Kaiser spokesman Scott Lamb. The U.S. Bankruptcy Court for
the District of Delaware is scheduled to rule on the transaction at a
regularly scheduled hearing on July 19, Lamb added, the newswire
reported. Houston-based Kaiser is selling the assets as part of its
chapter 11 reorganization to emerge from bankruptcy as a producer of
fabricated aluminum products. Kaiser filed for chapter 11 protection in
February 2002 , the newswire reported.

Skies Not Yet Clear for
Soaring Jet Makers

As bullish sentiment toward the world's leading jet
manufacturers builds, some experts are warning that fragile conditions
in the commercial aerospace market still pose a serious threat to their
outlooks, Reuters reported. The concerns center around ongoing weakness
in the airline industry, aggravated by high fuel costs.

In Asia, where traffic has rebounded strongly
following a drop last year linked to the outbreak of Severe Acute
Respiratory Syndrome (SARS), a flurry of new low-cost carriers is now
fueling worries about over-capacity. In Europe, discount airlines that
ordered hundreds of planes from Airbus and Boeing in recent years are
struggling amid tough competition from start-ups and more nimble network
carriers. Meanwhile, the problems of top U.S. airlines continue. United
Airlines is struggling to emerge from bankruptcy, US Airways is hoping
to avoid a second bankruptcy filing and Delta Air Lines has warned it
could be next. The International Air Transport Association  warned
last month that the industry could face losses of up to 3 billion euros
this year, the newswire reported.

Bank Group Wants Owens Corning
Chapter 11 Exclusivity Limited

Lenders led by Credit Suisse
First Boston objected to a request by Owens Corning to extend through
the end of the year the company's exclusive control over its Chapter 11
plan process. Credit Suisse, as agent for the company's pre-Chapter 11
bank lenders, asked the U.S. Bankruptcy Court in Wilmington, Del., to
limit any extension it grants to the building products company to Oct.
31. The lenders argued in an objection filed last Friday that by that
time, the court should have made a decision on whether or not to
consolidate the assets of Owens Corning's various units into one pool,
which will determine whether the company can move forward with its
pending turnaround plan.

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American Airlines Survival In
Doubt --Union Leader

The former head of the union
that represents pilots at American Airlines said the world's largest
carrier may not survive in its current form despite a massive
restructuring plan applauded by investors, according to a letter
obtained on Wednesday, Reuters reported. John Darrah, who recently
stepped aside as the head of the Allied Pilots Association, said the
concession deal he and other labor unions reached with American last
year aimed at saving $1.8 billion in annual labor costs, and helped the
carrier avoid a near-term bankruptcy. But the long-term prospects are
still questionable if the airline does not become more efficient, the
newswire reported.