July 15, 2004

Jobless Claims Rise More Than
Expected

The number of Americans filing
initial claims for jobless pay grew more than expected last week,
government data showed today, Reuters reported. First-time claims for
state unemployment benefits rose 40,000 to 349,000 in the week ending
July 10, the Labor Department said. Wall Street analysts had forecast a
substantial rise in claims to 346,000 from a revised 309,000 the
previous week. Strong economic growth, however, has delivered a
sustained improvement in hiring in the United States, with 671,000 jobs
added to the nonfarm payroll between April and June, although June's
score of 112,000 new jobs was less than half the number expected, the
newswire reported.

Court Confirms Enron
Bankruptcy Plan

A federal judge today approved
Enron Corp.'s plan to reorganize its debts, paving the way for the
failed energy trader to re-emerge from bankruptcy protection, Reuters
reported. More than two and a half years after the Houston company
collapsed, U.S. Bankruptcy Judge Arthur Gonzalez confirmed Enron's
plan.

United Defers Decision On
Pension Payment

United Airlines on Wednesday deferred a decision to
make a $72 million quarterly payment on pension plans this week,
sparking different reactions among its union leadership, Reuters
reported. UAL Corp. said in a regulatory filing that deferring the
decision to make the minimum quarterly payment on Thursday would enable
it to 'manage resources and preserve its options' as it tries to line up
funds to exit bankruptcy. Union reaction varied from suspicion about the
company's motives to warnings about seeking additional concessions to
praise for wisdom at a time when cash needs to be preserved, the
newswire reported.

Adelphia Chooses Team to Run
Sale After Long Wait

Bankrupt cable company Adelphia Communications Corp.
on Wednesday chose investment bank UBS and boutique firm Allen & Co.
to manage its potential sale, Reuters reported. Adelphia is reorganizing
under bankruptcy protection, but it agreed in April to put itself up for
bids under pressure from its shareholders and creditors. Adelphia's sale
could garner up to $20 billion, according to some analysts. Cable
competitors Time Warner Inc., Comcast Corp. and Cox Communications Inc.
are widely considered the most likely bidders for either all or part of
Adelphia, whose founder, John Rigas, was found guilty earlier this month
of fraud and conspiracy in the company's collapse, the newswire
reported.

Leucadia Has Not Made Offer to Buy MCI - MCI
CEO

The chief executive of MCI Inc.
said on CNBC on Wednesday that investment firm Leucadia National Corp.
has not made an offer to buy shares of the long-distance company that
recently emerged from bankruptcy, Reuters reported. 'This is certainly
not an offer at this point,' Michael Capellas told the business network.
'We have had one introductory session. All they have done is filed to go
through the regulatory process if they choose to purchase the stock.'
Leucadia's request to buy at least half of MCI would be filed with the
U.S. Federal Trade Commission and the U.S. Department of Justice, but
does not commit Leucadia to an acquisition of the stock and does not
guarantee that MCI would be taken over, the newswire
reported.

Zurich Financial Services Faces Claim in U.S. for
Over $500 Million

Zurich Financial Services may have to pay more than
$500 million to creditors in a bankrupt U.S. nursing home business to
which it issued a bond, the Swiss insurer said today, Reuters reported.
Zurich subsidiary ZC Specialty Insurance had issued a bond to a creditor
of Senior Living Properties (SLP), a company that ran 87 nursing homes
in the United States and went bust in 2002. SLP's creditors filed a
complaint against Zurich seeking damages of $528 million plus costs and
attorney fees, Zurich said following a report by theFinancial Times today.

Atlas Air Plan To Exit Chapter 11
Confirmed

Atlas Air Worldwide Holdings
Inc., the parent company of freighter aircraft operators Atlas Air and
Polar Air Cargo, said on Wednesday that the U.S. Bankruptcy Court
confirmed the company's plan to exit chapter 11 on or about July 26,
Reuters reported. The plan restructures the company's financial affairs
by implementing deals made with aircraft leasing companies and lenders
prior to filing for bankruptcy and also by distributing new shares to
certain creditors and cash to others. Atlas filed for chapter
11 with the U.S. Bankruptcy Court for the Southern District of
Florida in January.

Ex-CFO Tells of 'Cheat
Sheets' Before Cendant Deal

The former finance chief of Cendant Corp. predecessor
CUC International on Wednesday told a federal court that his two bosses
regularly used 'cheat sheets' outlining ways to fraudulently make up
earnings shortfalls, Reuters reported. CUC top executives at the time,
CEO Walter Forbes and President Kirk Shelton, met regularly to discuss
ways to make earnings meet Wall Street analyst expectations prior to the
1997 merger with HFS Inc. that created Cendant Corp., former CFO Cosmo
Corigliano testified, the newswire reported.

Furniture Brands Sees Charge on Breuners
Bankruptcy

Home furnishings manufacturer
Furniture Brands International on Wednesday said it will take a charge
of 9 cents to 10 cents per share in the second quarter due to the
bankruptcy filing of Breuners Home Furnishings, Reuters reported. 
 Furniture Brands said its Broyhill and Lane operations will be
listed as creditors in the Breuners bankruptcy with accounts receivable,
combined, of $10 million.



Federal Judge Allows Napster Suit to Proceed

A federal judge has allowed a case against the
financial backers of the original Napster online music service to
proceed, denying requests by German media giant Bertelsmann
AG and venture capital firm Hummer
Winblad Partners to dismiss a suit that alleges the two parties
helped Napster facilitate widespread piracy of music, the
face='Times New Roman'>Wall Street Journal
reported.

Chicago Developer Files for
Personal Bankruptcy



Amid mounting pressure from
creditors, including New York investment bank Lehman Brothers, Chicago
developer B.J. Spathies has filed for personal bankruptcy, the
Chicago Tribune reported. She filed on June 28, the same day
that she was due to respond to a fraud suit filed by Lehman that seeks
to collect $17.8 million in connection with a Near South Side
condominium project, which Lehman financed.