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December 15, 2004
Fed Raises Benchmark a Fifth Time
Federal Reserve officials raised a key short-term interest rate
yesterday for the fifth time this year, and indicated they will
gradually move rates higher next year to keep inflation under control as
the economy expands, the Washington Post reported. The
economy “appears to be growing at a moderate pace… and labor
market conditions continue to improve gradually,” the Fed’s
policymaking committee said in a statement, adding that inflation and
longer-term inflation expectations “remain well
contained.”
YUKOS Files for U.S. Bankruptcy, Seeks to Halt Sale
Russian oil company YUKOS today released a statement that it had
filed for chapter 11 bankruptcy protection in the U.S. Bankruptcy Court
for the Southern District of Texas, Houston Division, Reuters reported.
YUKOS said it was seeking a court restraining order to stop the auction
on Dec. 19 by the Russian government of its main production unit,
Yuganskneftegaz, and
compel Russia to take its claims for billions of dollars in damages to
arbitration, the newswire reported.
Airline Workers Rally at White House to Blast Cuts
Hundreds of flight attendants and other airline workers rallied
outside the White House yesterday in an angry appeal for the government
to block bankrupt carriers from dropping union contracts and pensions,
Reuters reported. Leaders of unions representing most U.S. airline
workers at the biggest carriers urged Congress and the Bush
administration to protect collective bargaining rights, retirement plans
and health care benefits, especially during bankruptcy proceedings.
United, Pilots Reach Tentative Deal
The pilots union at United Airlines yesterday said its negotiators
have reached a tentative contract deal with the bankrupt airline,
Reuters reported. Leaders of the Air Line Pilots Association will attend
a special meeting in Chicago on Thursday to review the deal, spokesman
Capt. Herb Hunter told Reuters. He said the union would not disclose any
details about the deal until its leaders meet to discuss it.
Justice Dept. Seeks $2.5 Billion from Rigas
The Justice Department has asked a judge to enter a $2.53 billion
judgment against two Rigas family members, citing the amount it claims
the Adelphia Communications Corp. founders obtained illegally, court
documents released yesterday show, Reuters reported. With such a ruling,
government lawyers would try to seize stock in cable TV systems run by
Adelphia, which are the Rigas family’s most valuable asset, the
Wall Street Journal said yesterday. Such a move by the U.S.
District Court for the Southern District of New York could block efforts
by Adelphia to emerge from bankruptcy or sell the company and its
assets.
KPMG Seeks Buyers for Remaining Courts U.K. Stores
Accountancy group KPMG, administrators for the bankrupt furniture
chain Courts, said on Tuesday it is looking for buyers for the
firm’s UK stores after failing to sell the business as a going
concern, Reuters reported. The administrators for the 154-year-old
British retailer, said on Monday they would sell 14 of the 88 stores
owned by Courts Plc in the U.K., to SB Capital for an undisclosed
sum.
Southwest Airlines Seeks Control of ATA—Report
Southwest Airlines’ $100 million bid for six Chicago Midway
gates leased by ATA Holdings Corp. features a proposal to take almost
complete control of the bankrupt carrier, the Indianapolis
Star reported yesterday. Citing a draft copy of Southwest’s
plans, the newspaper said that if Southwest’s bid for the gates
wins approval from a bankruptcy judge, the airline would remove ATA
senior executives, inject $47 million in cash and take a 35 percent
stake in ATA Holdings, parent of ATA Airlines.