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April 22, 2005
Bankruptcy Bill, Signed into Law, Given Public Law Number
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005
(S. 256), signed into law by President Bush on Wednesday, is now Public
Law Number 109-8.
Senator Plans Hearing on Asbestos Fund Bill
Senate Judiciary Committee Chairman Arlen Specter (R–Pa.) said
yesterday he will hold a hearing on Tuesday to try to answer
lawmakers’ questions about creating a fund to pay asbestos claims,
as pressure mounts for more details on how it would be financed, Reuters
reported. Specter and Sen. Patrick Leahy (D–Vt.) introduced
legislation creating the $140 billion fund this week and are seeking to
build committee support before the panel votes on the bill next
Thursday.
Regulators Pledge to Address Sarbanes–Oxley Law Concerns
The nation’s top financial regulators yesterday pledged to
address concerns over costs of implementing parts of the
Sarbanes–Oxley corporate governance law without weakening the
statute, which they believe is working well, CongressDaily
reported. In testimony before the House Financial Services Committee,
SEC Chairman William Donaldson, and Public Company Accounting Oversight
Board Chairman William McDonough both praised Sarbanes–Oxley as
integral to restoring investors’ faith in publicly traded
companies in the wake of the financial scandals of Enron Corp. and other
companies.
Qwest Raises Its MCI Offer to $30 a Share
Qwest Communications has raised its offer for MCI by 9 percent, to
$30 a share, in its latest effort to wrest control of the long-distance
carrier from Verizon Communications, the New York Times
reported. With its new offer, Qwest has met many of the conditions that
MCI’s board said two weeks ago were needed for Qwest to have a
chance to outmaneuver Verizon. MCI’s board has agreed to merge
with Verizon in a deal worth $23.10 a share.
Two Convicted in Enron Case Get Lighter Sentences Than U.S.
Sought
Two former Merrill Lynch executives, convicted in Enron’s bogus
sale of power barges to the brokerage firm, were sentenced on Thursday
to prison terms far shorter than the government had sought, the
Associated Press reported. James A. Brown, former head of
Merrill’s asset lease group, was sentenced to 3 years and 10
months in prison and a year’s probation. Daniel Bayly, former head
of investment banking, was sentenced to two and a half years in prison
and six months of probation. Each was ordered to pay $840,000 in fines
and restitution.
Losses at Northwest and Delta, but JetBlue Reports a Profit
Delta and Northwest Airlines both reported steep first-quarter losses
yesterday, while the low-fare JetBlue Airways bucked the industry trend
and posted a modest profit, the New York Times reported.
But even JetBlue was not insulated from the high fuel prices that have
dragged down airline profits this year. JetBlue earned only $7 million
in the quarter, less than half the profit it made during the same period
last year.
House Pension Plan Omits Airline-sought Pension Break
A pension funding break being sought by airlines is not part of
pension legislation being drafted by House Education and Workforce
Committee Chairman John Boehner (R–Ohio), a committee spokesman
said yesterday, the online Wall Street Journal reported.
Boehner will take the lead in drafting pension legislation in the House
this year and could have a bill ready for introduction as early as this
May and at the latest by summer.
US Airways Cuts May Have Cleared Way for a Merger
America West Holdings Corp. began its talks with US Airways Group
Inc. about a possible merger more than a year ago but was reluctant to
move forward aggressively until US Airways reduced its labor costs
significantly, a former US Airways executive said yesterday, the
Washington Post reported. “A deal never made sense
until US Airways addressed its cost issue, which was the remaining labor
concessions it needed,” said the executive, who spoke on condition
of anonymity because of the sensitivity of the talks.
Time Warner and Comcast Seal Adelphia Purchase
Time Warner and the Comcast Corporation agreed yesterday to acquire
Adelphia Communicationsfor $17.6 billion in cash and stock, a deal that
reflects Time Warner’s decision to bet heavily on growth in its
cable unit, the New York Times reported. As a result of the
acquisition and several swaps with Comcast, Time Warner will have strong
pockets in Texas and a dominant position in Los Angeles, the largest
market after New York, where Time Warner is already the leading cable
provider.
Judge to Rule on Hiring Consultant for Tucson Diocese
Lawyers representing potential future claimants of sexual abuse may
have swayed the judge in the Tucson
Catholic Diocese’s bankruptcy proceedings to let them hire
consultants to estimate the number of such victims, the Casa
Grande Valley reported. Bankruptcy Judge James Marlar said he
would rule in the next day or so whether to allow attorneys A. Bates
Butler III, representing unknown future claimants, and Charles Arnold,
the guardian ad litem representing unknown minors who were abused, to
hire child sexual abuse experts Michael Bayless and Robert Emerick of
Phoenix.