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February 14, 2004
House to Vote on Class-action Measure This Week
The House vote on the class-action measure is expected on Wednesday
or Thursday, CongressDaily reported. House Majority Leader
Tom DeLay (R–Texas) and Judiciary Chairman James Sensenbrenner
(R–Wis.) promised expedited passage of the Senate compromise bill
“without alteration” if senators refrained from amending it
during last week’s debate, the newswire reported. The Senate
approved the measure last week. The bill would move many class-action
lawsuits from state courts to federal courts, where more stringent rules
would govern the cases. It is identical to a compromise that had the
support of more than 60 senators last year, but stalled after GOP and
Democratic leaders clashed over unrelated amendments.
Senate to Mark Up Bankruptcy Bill on Thursday
The Senate Judiciary Committee is tentatively scheduled to mark up
bipartisan legislation on Thursday to overhaul the nation’s
bankruptcy laws, CongressDaily reported. The bill,
introduced last week by Finance Chairman Charles Grassley
(R–Iowa), is similar to bankruptcy legislation that passed the
House during the last Congress. Senate Majority Leader Bill Frist
(R–Tenn.) has said he hopes to move it to the floor as soon as
possible.
Verizon Closes Deal to Buy MCI for About $7 Billion
Verizon announced this morning that it had agreed to acquire MCI for
about $6.6 billion in cash and stock, the New York Times
reported. Verizon’s acquisition ends the independence of MCI, with
14 million residential customers and about a million corporate
customers. Last year MCI emerged from bankruptcy protection. The
company’s high-margin corporate customers and worldwide telephone
and data network make it quite valuable.
Qwest’s Future Uncertain Without MCI—Analysts
Qwest Communications International Inc. may find itself with little
room to maneuver without MCI, Reuters reported. Thanks to a struggling
long-haul network, $17 billion in debt and the least-profitable local
telephone business among the four “Baby Bells,” analysts say
Qwest has few big possible moves available without the MCI deal.
Kmart Restates Results for Accounting Change
Kmart Holding Corp., which agreed in November to buy Sears, Roebuck
& Co., on Friday restated some financial results to reflect new
accounting for a $60 million convertible note issued when Kmart emerged
from bankruptcy protection in May 2003, Reuters reported. Kmart said it
undertook the restatement after talks with the U.S. Securities and
Exchange Commission.
Two Recording Studios Closed
In the space of five days, two major recording facilities in two of
the largest markets—New York and Los Angeles—have closed or
announced imminent closure, Reuters reported. The Hit Factory in New
York will shut its doors by the end of the month. Separately, the
Hollywood’s Cello Studios—formerly Western Recorders and
later part of Ocean Way Studios—closed on Jan. 28, simultaneous
with a bankruptcy filing.
Yukos Files Reorganization Plan, Sues Russian Firms
Russian oil company YUKOS said on Friday it had filed a
reorganization plan with the U.S. Bankruptcy Court and announced it was
suing four Russian energy groups for more than $20 billion, Reuters
reported. The moves came days before a hearing on whether YUKOS
bankruptcy case can proceed in the United States, the newswire
reported.
Court Approves New Kaiser Aluminum Financing Deal
Kaiser Aluminum, which is under chapter 11 bankruptcy protection,
said on Friday that the U.S. Bankruptcy Court for the District of
Delaware had approved a new financing arrangement, Reuters reported. The
company said the financing consisted of a $200 million
debtor-in-possession credit and, after it emerges from chapter 11, a
multi-year exit financing in the form of a $200 million revolving credit
and a fully drawn term loan of up to $50 million.
America West on the Lookout for Acquisitions—CEO
America West Airlines expects a wave of mergers among U.S. low-cost
carriers, its CEO said on Thursday, adding that his own company is
keeping an eye out for possible acquisitions. Doug Parker told Reuters
that there are too many low-fare carriers and that the airline will be
one of two or three low-cost airlines standing after a period of
consolidation. Parker declined to say which rival airlines might be
targeted for acquisition. He said only that America West was open to
opportunities that would be presented if weaker airlines start to fail,
the newswire reported.