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December 21, 2004
UAL Business Plan Seen as Feasible
United Airlines’ business plan for exiting bankruptcy is
feasible but under certain conditions even if the airline achieves its
cost cutting goals, an independent analysis of the company’s
strategy showed yesterday, Reuters reported. An executive summary of the
confidential six-week review by Bridge Associates LLC found, after
reviewing internal company and other documents and proposed cost cuts,
that the airline’s plan for stepping out of court protection next
year is doable under certain conditions.
Global Crossing Unit Sells $405 Million Bond
A U.K. unit of Global Crossing Ltd, the formerly bankrupt telecoms
firm, sold a larger than expected high-yield bond worth $405 million on
Monday, a banker said, as it seeks to beef up its finances and repay a
key loan, Reuters reported. Global Crossing (U.K.) Finance Plc (GCUK)
sold a 105-million-pound, 10-year bond at 98.575 to yield 12 percent and
a $200 million 10-year bond at 98.514 to yield 11 percent, said the
banker, Reuters reported. Global Crossing, which exited bankruptcy a
year ago, said in October it would need “significant” extra
funds beyond the end of 2004.
Monsanto Sets Aside $285 Million for Solutia
Monsanto Co. yesterday said it would set aside $285 million to cover
liabilities tied to its former affiliate Solutia Inc. in an initial move
to define the cost of many legal problems stemming from the bankrupt
chemical company, Reuters reported. Monsanto said it was reducing its
first-quarter and 2005 net earnings outlook because of the reserve, but
said its operating profits should be better because of strength in its
biotech seeds businesses.
Millport Files for Bankruptcy
The West Alabama town of Millport has filed for bankruptcy, al.com
reported. The town filed a petition in U.S. Bankruptcy Court to
reorganize under chapter 9. The town has struggled to pay a $2 million
loan to the U.S. Department of Agriculture’s Rural Utility Service
for its sewer and water system upgrade. The U.S. Attorney’s Office
had filed a May request asking a judge to appoint a receiver to oversee
the town’s sewer system to bring the payments current.
Bankruptcy Not the Stigma It Was
Bankruptcy, today, does not carry the stigma it had in the early last
century, Philly.com reported. With many people following the federal
government’s example, getting deeply into debt isn’t the
stigma it once was. Read the full article at
href='http://www.philly.com/mld/dailynews/news/local/10457879.htm'>www.philly.com/mld/dailynews/news/local/10457879.htm.
Bankruptcy Court Confirms Chapter 11 Sale of Chevys
The U.S. Bankruptcy Court for the Northern District of California
yesterday confirmed the chapter 11 sale of Chevys Inc to Chevys
Restaurants LLC, a wholly-owned subsidiary of Real Mex Restaurants Inc.
for in excess of $90 million, Kirkland & Ellis LLP announced in a
press release. Real Mex is controlled by New York private equity firm
Bruckmann, Rosser, Sherrill & Co. LLC.
Health Benefits Vanish in Bankruptcy Court
Hundreds of thousands of steel, airline and technology workers have
seen long-promised coverage disappear or be cut in recent years,
latimes.com reported. Read the full article at
href='http://www.latimes.com/technology/la-adna-promise19dec19,1,737148.story…'>www.latimes.com/technology/la-adna-promise19dec19,1,737148.story?coll=l….