July 30, 2004

Economic Growth Weaker Than
Expected

The U.S. economy braked more
sharply than expected in the second quarter as shoppers curbed their
free-spending ways amid a sharp advance in energy prices, government
data released today showed, Reuters reported. U.S. gross domestic
product, a measure of total output within the nation's borders, climbed
at a modest 3 percent annual pace in the April-June period after an
upwardly revised 4.5 percent clip at the start of the year, the Commerce
Department said. Wall Street economists had looked for GDP to advance at
a 3.6 percent pace after the previously reported rise of 3.9 percent in
the first quarter. While the latest quarter proved weaker than expected,
some recent signs suggest the economy's pace has already
quickened.

Enron Seeks To Extend
Exclusive Plan-Voting Period

Enron Corp. has asked the court
overseeing its bankruptcy case to extend its exclusive period for
soliciting votes on its chapter 11 plan so as to allow appeals of the
recently approved plan to conclude. An extension of voting exclusivity
through 30 days after resolution of the appeals will give Enron and
other parties an opportunity to correct any infirmities in the plan
while minimizing the need for lengthy and expensive litigation over
competing plans, the former energy giant said in a court filing late
Wednesday.

The filing, Enron's eighth
request for an exclusivity extension since it filed for Chapter 11
protection in December 2001, said that the company is seeking an
extension 'only out of an abundance of caution, as the Debtors believe
the confirmation order will not be overturned on appeal.'

Provided by Daily Bankruptcy
Review (
href='http://www.djnewsletters.com/trial-form.html?promo=TDBRABI2'>http://www.djnewsletters.com/trial-form.html?promo=TDBRABI2)
Copyright (c) 2004 Dow Jones & Company, Inc.   All Rights
Reserved

UNITED
AIRLINES

A United Airlines Union Sues
3 Executives Over Pension Funding

One of United Airlines' labor
unions sued company executives on Thursday for halting contributions to
the company's pension plans while the airline remains in bankruptcy
protection, the Associated Press reported. The International Association
of Machinists and Aerospace Workers, which represents more than 20,000
ramp workers and customer-service agents, accused the top three United
officials of a breach of fiduciary duty in connection with the pension
decision announced last week. The lawsuit came on the same day that
United's parent, UAL, reported a $247 million net loss for the second
quarter - its 16th consecutive quarter in the red - though it did eke
out a $7 million operating profit excluding restructuring costs and
other items, the newswire reported.

UAL Posts a
Sharply Narrower Loss

United Airlines
parent UAL Corp. reported a sharply narrower second-quarter loss, the
Wall Street Journal reported. UAL narrowed its loss to $247
million, or $2.25 a share, from $623 million, or $6.26 a share, a year
earlier, despite the latest period's higher fuel expenses and continuing
bankruptcy-restructuring expenses. Excluding special items, mainly
related to UAL's chapter 11 proceedings, the company showed a loss of
$103 million, or 95 cents a share in the latest period. A year earlier,
the company had a loss of $476 million, or $4.79 a share, excluding such
items and factoring out $300 million in government grants.

Losses Increase as Cash
Decreases, Straining Trump's Casinos

Trump Hotels and Casino Resorts
Inc. reported increased losses for the second quarter and a dwindling
supply of cash yesterday, leaving the struggling company in an
increasingly perilous financial position, the New York Times
reported. Beginning with Memorial Day weekend, the summer season
typically is the most lucrative for casino companies because more people
are on vacation and looking to gamble. But Trump Hotels lost $17.6
million, or 59 cents a share, in the quarter, compared with a loss of
$10 million, or 46 cents a share, in the same quarter last year. Trump
Hotels’ cash reserves — which it needs to help reduce its
$1.8 billion in debts — are shrinking. The company says it has
$81.1 million on hand, down from $124.3 million in the first quarter of
the year, the newspaper reported.

Solutia Asks To Share Legal
Information With Monsanto, Pharmacia

Solutia Inc. is seeking court
approval for joint defense with Monsanto Co. and Pharmacia Corp. over
some environmental cleanup liabilities that the companies are facing,
according to court papers obtained by Dow Jones Newswires. A joint
defense agreement would allow the companies - which are facing a number
of environmental liabilities because of their past or current use of
landfill sites - to share confidential information, Solutia said in a
filing Tuesday with the U.S. Bankruptcy Court in Manhattan. Under the
proposed agreement, Solutia, Monsanto and Pharmacia would meet to
develop a settlement strategy about all environmental matters concerning
more than one of them. The three companies would then jointly select a
settlement liaison counsel to pursue that strategy.

Provided by Daily Bankruptcy
Review (
href='http://www.djnewsletters.com/trial-form.html?promo=TDBRABI2'>http://www.djnewsletters.com/trial-form.html?promo=TDBRABI2)
Copyright (c) 2004 Dow Jones & Company, Inc.   All Rights
Reserved

Italy's Parmalat Files For
Damages Vs Citigroup

The new administration of
Italy's Parmalat filed for damages from their former bankers Citigroup
on Thursday, part of a plan to recover some of the cash paid to banks
before the food group went insolvent, Reuters reported. Parmalat's
government-named administrator, Enrico Bondi, filed the suit against
Citigroup and some of its subsidiaries in the Superior Court of New
Jersey, the group said in a statement. Parmalat has in the past said it
would file suits against banks and securities firms that handled its
bond sales, the newswire reported.

Kaiser Says Pensions Group
Taking Over Plan

Kaiser Aluminum Corp. said on
Thursday the Pension Benefit Guaranty Corp. (PBGC) intends to assume
responsibility for the Kaiser Aluminum inactive pension plan,
retroactive to June 30, 2004, Reuters reported. Houston-based Kaiser,
which filed for chapter 11 bankruptcy protection in February 2002, said
the inactive plan generally covers hourly retirees who were represented
by unions at several smaller Kaiser plants where operations were
discontinued a number of years ago. PBGC said the Kaiser inactive plan
covers more than 2,900 former Kaiser workers, the newswire
reported.

Stelco To Cut Steel Product
Lines, Close Plants

Stelco Inc., Canada's biggest
steelmaker, said on Thursday it plans to shut eight plants and
businesses as it cuts product lines to focus on the auto, construction
and certain manufacturing sectors, Reuters reported. The company, which
has been in bankruptcy protection since January after sinking under debt
and struggling with weak steel prices, said it expects to emerge from
court-supervised restructuring with much lower costs.

American Airlines CEO Turns
Down Pay Raise

Gerard Arpey, chairman and CEO
of American Airlines' parent company AMR Corp., has turned down a pay
raise of over $100,000 a year, airline officials said on Thursday,
Reuters reported. Officials said Arpey did not feel it was appropriate
to receive a pay raise as the airline struggles to recover and its
employees accepted wage concessions last year in order to stave off
bankruptcy at the carrier. Earlier this month, the AMR board offered
Arpey $625,000 in base pay for his role as chairman and CEO. Arpey, who
took on the title of chairman earlier this year, declined the offer and
said he will keep his current base salary of $513,700, the newswire
reported.