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July 13, 2005
Specter Still Pushing for July Action on Asbestos
Senate Judiciary Chairman Arlen Specter (R–Pa.) said yesterday
he was still pushing to bring an asbestos bill he is co-sponsoring to
the Senate floor in July, CongressDaily reported. Despite
disagreements over the bill that would create a $140 billion asbestos
compensation fund, a busy legislative calendar and a forthcoming Supreme
Court nomination, Specter said he was still “pressing to bring it
up in July.” Majority Leader Bill Frist (R–Tenn.) said he
had not ruled out July for action on the bill, but had made no decision
on timing.
Ebbers Loses Bid for a New Trial; Sentencing Today
Former WorldCom CEO Bernard Ebbers is scheduled to be sentenced today
for his role in the $11 billion accounting fraud at WorldCom, the
New York Law Journal reported. Southern District of New
York Judge Barbara Jones yesterday rejected Ebbers’ bid for a new
trial, removing the last obstacle to his sentencing. Prosecutors in the
U.S. Attorney’s Office for the Southern District, have asked the
judge to sentence Ebbers to life imprisonment.
GT Brands Files for Bankruptcy
Manhattan-based GT Brands Holdings, formerly known as GoodTimes
Entertainment, has filed for chapter 11 bankruptcy, Newyorkbusiness.com
reported. The company listed assets of $79 million and liabilities of
$212 million. Along with the bankruptcy petition, GT Brands filed a plan
to sell its assets for $40 million.
Bankruptcy Judge: Winn-Dixie Retirees Can’t Have
Committee
A bankruptcy judge is rejecting the bids of Winn-Dixie retirees for a
formal committee to represent their interests, the Associated Press
reported. The judge said that retirees are adequately represented by the
existing creditors’ committee. He added that appointing a separate
committee would be premature since the retirees are receiving their
benefit checks.
Enron
Labor Department Settles Lawsuit Against Enron
The Labor Department, which sued Enron in 2003 on behalf of the
company’s employees, said about $356 million will be set aside out
of proceeds from the sale of Enron’s assets to cover some of the
lost retirement and pension plan benefits, the Associated Press
reported. “This agreement makes possible a significant recovery
for Enron retirees and their families,” Labor Secretary Elaine
Chao said.
Prosecutors Give Closing Arguments in Trial of Ex-Enron
Officers
Prosecutors in the trial of five former executives of the Enron
Corporation’s failed Internet business wrapped up their arguments
on Tuesday, accusing the former executives of lying about the
unit’s health and hiding its huge losses, Reuters reported. The
unit’s core software packages were promoted to Wall Street but
never worked properly and failed to generate much income for the
company. That prompted executives at the unit, called Enron Broadband
Services, to engage in accounting fraud to help cover up millions in
losses, the newswire reported.
Xanodyne Wins Aaipharma Unit in Bankruptcy Auction
AaiPharma Inc. on Tuesday said privately-held Xanodyne
Pharmaceuticals Inc. was the winning bidder in the auction for the
bankrupt drug maker’s pharmaceuticals division, Reuters reported.
Xanodyne’s $209.3 million bid, which is subject to bankruptcy
court approval, was about $40 million higher than the original offer
AaiPharma announced as part of its chapter 11 bankruptcy filing in May,
the company said. Xanodyne also committed to buy up to $30 million of
services from AaiPharma’s development services division over the
next three years, AaiPharma said.
Eurotunnel Tells Creditors of Plans
Eurotunnel has outlined to creditors its ideas for reducing its 6.4
billion of debts and has warned that any deal is likely to be complex,
Sky News reported. Eurotunnel Chairman and CEO Jacques Gounon has
previously warned that bankruptcy will be inevitable without the outline
of a deal with its banks by October.