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February 7, 2005
Senate Prepares for Start of Class-action Debate Today
The Senate plans to begin floor debate this afternoon on a bipartisan
bill to overhaul the rules for class-action lawsuits,
CongressDaily reported. Opponents of the legislation are
expected to offer amendments beginning Tuesday, but under a unanimous
consent agreement announced last week, all amendments must be relevant
to the bill. There will be “no limit on the timing, number or
substance” of related amendments, according to a spokesman for
Minority Leader Harry Reid (D–Nev.). House Majority Leader Tom
DeLay (R–Texas) and Judiciary Chairman James Sensenbrenner
(R–Wis.) last week pledged to “immediately take it up in the
House and pass it without alteration” if the Senate passes the
bill as-is. Rep. Bob Goodlatte (R–Va.) said the House
“stands ready to move its own legislation” if the Senate
modifies the bill with “killer” amendments, the newswire
reported.
Senate to Hold Hearing on Bankruptcy Reform on Thursday
The Senate Committee on the Judiciary will hold a hearing on
Thursday, Feb. 10, on “Bankruptcy Reform.” The bill,
introduced by Finance Chairman Charles Grassley (R–Iowa), is
similar to legislation that passed the House last year but stalled in
the Senate. The legislation would require debtors who have the means to
pay off their debts to enter a repayment plan, rather than having their
debts canceled under chapter 7. It also would permanently extend chapter
12 bankruptcy protections for family farmers.
Senate Hearing on Credit-rating Agencies Scheduled for Thursday
The Senate Banking Committee has scheduled a hearing Tuesday on
credit-rating agencies whose assessments of companies’ finances
affect regulatory actions, lending decisions and investment trends.
Scheduled witnesses include executives from Moody’s Investors
Services, Standard & Poors and Fitch Ratings,
CongressDaily reported.
Senate May Mark Up Asbestos Legislation This Week
Senate Judiciary Chairman Arlen Specter (R–Pa.) is hoping to
introduce legislation to establish a $140 billion trust fund to
compensate victims of asbestos-related illnesses,
CongressDaily reported. Specter said he wants to hold a
markup this week, but those plans might be pushed back, as disagreements
continue over the bill’s details. Specter has hoped that Sen.
Dianne Feinstein (D–Calif.) would co-sponsor the bill, but
Feinstein—who has drafted her own version—has not responded.
Specter said that once the bill clears committee, the Senate could vote
on the measure before its spring recess, the newswire reported.
Failing Pension Plans Push Union to Review Retirement Age for
Pilots
The airline industry’s financial crisis and the collapse of
some pension plans are leading the nation’s biggest pilot union
and some aviation experts to question a federal rule requiring that
airline pilots retire at the age of 60, the New York Times
reported.
Letting pilots work a few years longer would give those who are
suddenly facing much more frugal retirements more time to save money,
and could reduce the funds’ expenses by cutting the number of
pensioners, advocates say. For some airlines, it could also trim
operating costs by reducing the need to train new pilots, although not
all airlines would see benefits and some might see additional costs,
experts say, the newspaper reported.
Judge Approves Trump Hotels Bankruptcy Financing
Trump Hotels & Casino Resorts Inc. on Thursday won bankruptcy
court approval of financing to allow it to continue operations during a
reorganization, according to court documents, Reuters reported. The
approval clears the way for Trump Hotels to use a $100 million
debtor-in-possession credit line it has established with Beal Bank.
Under the restructuring, negotiated with bondholders before Trump
Hotels filed for chapter 11 bankruptcy protection in November,
bondholders will own about two-thirds of the company and Donald
Trump’s stake will shrink to about 27 percent from 56 percent.
Trump will remain chairman and CEO, the newswire reported.
Adelphia Amends Plan to Allow for Creditor Payouts
Cable operator Adelphia Communications Corp. on Friday filed an
amended plan for its bankruptcy reorganization that would let it
distribute to its creditors any money it might raise from the sale of
its assets, Reuters reported. Adelphia said the plan still allows for
the two-track strategy it has employed for the past nine months. The
company is working to reorganize under bankruptcy protection, while also
entertaining bids for some or all of its assets.
Qwest Explores Other Options as It Waits for MCI Response
MCI hasn’t responded to a $6.3 billion acquisition offer from
Qwest Communications International Inc., prompting Qwest to explore
alternative scenarios in case the deal falls through, the Wall
Street Journal reported. Meanwhile, MCI and Verizon
Communications Inc. continued exploratory talks during part of the
weekend, as Verizon seeks details about MCI’s financial
performance, according to people familiar with the talks. Verizon still
hasn’t decided whether to bid for MCI, the online newspaper
reported.
Rosneft Faces Global Litigation from YUKOS Debtors
Russian state oil firm Rosneft’s potential bill for its $9.3
billion purchase of Yugansk rose by $900 million on Friday as another
creditor demanded payment of loans, Reuters reported. YUKOS owner
Menatep Group said it will ask Rosneft to pay back a $900 million loan
secured on Yugansk, the former core production unit of YUKOS, possibly
next week, days after banks owed $540 million demanded immediate
payment. Failure to pay off creditors might trigger a cross-default
provision built into a $150 million Eurobond Rosneft issued in 2001,
which matures next year, bankers said, the newswire reported.
Stelco Workers OK New Strike Mandate
Workers at Stelco Inc.’s AltaSteel facility near Edmonton,
Alberta, voted 92 percent in favor of renewing a strike mandate, the
United Steelworkers said on Friday, Reuters reported. The 266 workers
voted on Thursday to renew a strike mandate granted last September
during ongoing contract negotiations. Workers at AltaSteel have been
without a collective agreement since July. The union local representing
the workers is negotiating with potential bidders for Stelco as Stelco
management has said it intends to sell AltaSteel as part of its
restructuring process, Reuters reported.
Ariz. Bankruptcy Court Offers Help with Bankruptcy
The U.S. District Bankruptcy Court in Arizona is installing self-help
counters with documents and computers to assist people with their
bankruptcy filings, the Arizona Republic reported. The
court also is working with the State Bar of Arizona’s voluntary
legal program to offer attorneys who will provide free, limited legal
assistance on-site. The forms and computers will be useful for people
filing either as individuals or for their small businesses. The
attorneys’ aid will be aimed primarily at individuals. The court
is working with the attorneys group to staff the self-help center at
lunch to make it more convenient.