src='/AM/Images/headlines/headline.gif' />
August 9, 2005
Top Lobbyist Retires From Delta
The chief lobbyist for Delta Air Lines, who has led the
airline’s fight for pension overhaul legislation in Washington,
retired last week, Delta said yesterday. The airline’s treasurer
also resigned. Delta said that its senior vice president for government
affairs, D. Scott Yohe, retired Aug. 1 after 26 years with the company,
the New York Times reported today. Mr. Yohe, 52, will
become a consultant and remain as the airline’s top Washington
representative, a job he has held for 17 years, a Delta spokeswoman,
Chris Kelly, said. Delta also said that its vice president and
treasurer, Todd Helvie, left the airline, a year after he was promoted
to the job. Paul Jacobson was named to the post.
US Asbestos Moves to Senate, but Faces Hurdles
U.S. Senate Judiciary Committee chairman Arlen Specter has said that
he expects the Senate to take up asbestos-victim compensation
legislation as soon as possible. While conceding that the exact schedule
will be up to Senate majority leader Bill Frist, Specter said the bill
has “momentum in hand” and that “it would be very much
in the national interest … to move ahead.” The legislation
would create a $140 billion industry-funded trust from which to pay
claims to workers with asbestos-related injuries.
Portland Archdiocese Begins Mediation with Abuse Victims
The Roman Catholic Archdiocese of Portland began mediation this week
with more than 60 former parishioners who say they were abused by
priests, the Associated Press reported today. The total number of
victims has risen to at least 240.The archdiocese says it hopes that,
through mediation, the two church and the individual victims will be
able to agree on a dollar figure for how much they should be
compensated. If they don’t agree, the two sides will next meet in
bankruptcy court.
Delphi Warns of Bankruptcy if Restructuring Fails
Delphi and Visteon both swung into the red yesterday after the U.S.
car parts suppliers felt the impact of major cuts by customers and
impairment charges, MarketWatch reported yesterday. Delphi also warned
that, if discussions with unions over labor cuts and talks with General
Motors over financial support were unsuccessful, it may have to consider
filing for bankruptcy. The group reported a second-quarter net loss of
$338 million, or 60 cents per share, in the second quarter, compared
with a net profit of $143 million, or 25 cents per share, as the U.S.
group saw a fall in demand from GM, its major customer. Visteon
yesterday reported a $1.2 billion second-quarter net loss as the U.S.
car parts supplier was hit by $1.1 billion of impairments charges, most
of which related to the return of assets to Ford, its former parent.
Couple Gets $10 Million in Asbestos Case
William Rhodes, who suffers from mesothelioma, an incurable lung
disease, and his wife, Doreen, were awarded $10 million by a jury Friday
for his asbestos-related injury, the Trenton Times reported
Saturday. The jury found that Universal Supply Group had supplied most
of the asbestos-containing products to Suburban Fuel where Rhodes worked
for 30 years. Three other companies, A.W. Chesterton Co., Air Products
and Chemicals and the Burnham Corp., had reached out-of-court
settlements in the case prior to the trial.
Anchor Glass Files Voluntary Chapter 11
href='http://www.marketwatch.com/tools/quotes/newsarticle.asp?guid=%7b49554EE…'>Anchor
Glass Container Corporation announced yesterday that the company filed a
voluntary petition for chapter 11 reorganization, Business Wire
reported. The company said that it intends to request court approval to
continue payments of employee salaries and to continue health and
welfare benefits to current employees without disruption.
href='http://www.marketwatch.com/tools/quotes/newsarticle.asp?guid=%7b49554EE…'>Read
the full story.
Resilience Capital Partners Acquires LLC Air Enterprises
Resilience Capital Partners LLC, a Cleveland-based private equity
firm, has completed the acquisition of Air Enterprises Inc. out of
chapter 11 bankruptcy protection, MarketWatch reported yesterday.
Founded in 1964, Air Enterprises is the global leader in designing,
engineering, manufacturing and supporting custom air handling
systems.
US Airways Breaks with Bank of America
href='http://www.miami.com/mld/miamiherald/business/industries/banking/123365…'>Holders
of US Airways Dividend Miles Visa cards will eventually stop sending
payments to Bank of America Corp., which is getting out of the
business of sponsoring the airline’s frequent flier cards, the
Miami Herald reported today. Taking the place of Charlotte-based Bank of
America will be Juniper Bank, a subsidiary of British-based Barclays
PLC, which agreed yesterday to pour $455 million into the merger between
US Airways and America West Airlines. In exchange, Juniper will have the
exclusive right to market the US Airways credit card beginning in 2008,
after a two-year transition period during which both banks can offer US
Airways cards, according to regulatory documents filed yesterday.
href='http://www.miami.com/mld/miamiherald/business/industries/banking/123365…'>Read
the full story.
Sorbara Rejects Stelco Restructuring Plan
Ontario’s finance minister Greg Sorbara has rejected
Stelco’s restructuring plan, Broadcast News reported today.
Sorbara has also refused to give the steelmaker the leeway it had asked
for on pension funding requirements. Without government cooperation,
Stelco must make pension payments in excess of $320 million a year, once
it emerges from bankruptcy protection. CEO Courtney Pratt said that
would “swamp” the Hamilton-based company. The province says
it wants a plan that ensures Stelco is viable over the long-term.
Sorbara’s letter says that the province will continue working with
Stelco to see if an acceptable restructuring plan can be developed.
MCI Returns to Profit in Second Quarter
href='http://today.reuters.com/business/newsarticle.aspx?type=ousiv&storyID=2…'>MCI
Corp. today said that it returned to profitability in the second
quarter as cost cuts outweighed a 10 percent reduction in revenue,
Reuters reported. MCI, which has agreed to be bought by Verizon
Communications Inc. for $8.6 billion, earned $64 million, or 19 cents
per share, compared with a loss of $71 million, or 22 cents per share, a
year earlier. Revenues totaled $4.68 billion. Analysts on average had
expected MCI to earn 8 cents a share on revenues of $4.64 billion,
according to Reuters Estimates.
href='http://today.reuters.com/business/newsarticle.aspx?type=ousiv&storyID=2…'>Read
the full story.
SEC Charges Two Former Citigroup Executives With Fraud
Federal
regulators yesterday charged two former executives of Citigroup Inc.
with fraud in connection with alleged improprieties said to have
garnered the financial services giant nearly $100 million at the expense
of mutual fund shareholders, the Associated Press reported today. The
SEC said it had filed a civil lawsuit against Thomas W. Jones, the
former chief executive of Citigroup’s asset management division,
and Lewis Daidone, who was treasurer and chief financial officer of the
Smith Barney mutual funds in question, saying that they were two of the
company officials principally responsible for the alleged fraud.
href='http://www.law.com/jsp/article.jsp?id=1123504532119'>Read the full
story.
Court Gives OK for United to Refinance Debt on Planes
A bankruptcy court yesterday granted a request by United
Airlines’ parent, UAL Corp., to refinance the debt on some of its
aircraft to head off possible repossession, the Indianapolis
Star reported today. The decision by Judge Eugene R.
Wedoff of the Northern District of Illinois Bankruptcy Court paves
the way for United to pay off the senior debt for the 14 aircraft. In a
hearing on July 27, Wedoff already had authorized United to purchase the
junior debt. United was due to present its reorganization plan last
week, but said it would delay the filing by about a month to give the
airline and its creditors more time to review the documents.
J.P. Morgan May Face SEC Charges over Century Financial
J.P. Morgan Chase & Co. said the Securities and Exchange
Commission may bring civil charges against the bank over its role with
National Century Financial Enterprises, MarketWatch reported today. In a
filing late yesterday with the SEC, J.P. Morgan said that two employees,
one current and one former, may have violated securities laws when they
served on the board of directors of the company, which is now operating
under bankruptcy protection. Shares of J.P. Morgan fell 26 cents to
close at $34.99 yesterday.