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November 30, 2004
Third-Quarter Economic Growth Set at 3.9 Percent
The economy, fueled by increased consumer and business spending, grew
at an annual rate of 3.9 percent in the third quarter, a performance
that was stronger than previously thought, the Associated Press
reported. The new reading on gross domestic product, which is based on
additional data, was up from the 3.7 percent growth rate first estimated
for the July-to-September quarter, the Commerce Department reported
today. The 3.9 percent growth rate registered in the third quarter
represented a pickup from the second quarter’s 3.3 percent pace
and marked the best showing since the opening quarter of this year.
Halliburton Settles Insurance Dispute
Halliburton Co. said on Monday a bankruptcy judge approved the final
insurance settlement agreements between bankrupt Halliburton
subsidiaries DII Industries and Kellogg Brown & Root and insurers
over asbestos and silica injury claims, Reuters reported. The Houston
oil field services company said the settlements resolve the
debtors’ insurance disputes and will result in more than $1.5
billion in cash to be paid from a trust for the claims. Halliburton said
it expects the settlements will help to end the bankruptcy case by the
end of this year.
Former Brobeck Partners Query Trustee’s Motives
Facing millions of dollars in potential liability, former Brobeck,
Phleger & Harrison partners have turned their sights on the
firm’s bankruptcy trustee, the Recorder reported. In
filings last week, former partners suggested that Brobeck’s
landlords elected Ronald Greenspan trustee because he agreed to go after
partners for money they allegedly owed the estate, rather than pursue
litigation against Clifford Chance. In July, Greenspan got Clifford
Chance to agree to pay $3.75 million—later upped to $4.5
million—to settle potential claims the trustee might pursue
against it. U.S. Bankruptcy Judge Dennis Montali is scheduled to hold a
hearing on the proposed agreement today in San Francisco,
href='http://www.law.com/'>www.law.com reported.
Pilots and Makers of Copters Defy the Aviation Slump
In an aviation world of bankrupt airlines the helicopter business is
a relatively optimistic niche, the New York Times reported.
As airlines that rely on fare-shopping passengers struggle to survive,
helicopter companies that can charge $10,000 for a single medical
airlift are thriving. With the business on the upswing, manufacturers,
after suffering through a post-Sept. 11 slump, are competing intensely
for military and commercial orders that could reap them at least $6
billion, probably more, the newspaper reported.
Briggs and Stratton Eyes Murray Inc. Assets
Briggs and Stratton Corp. said today it would look at acquiring
certain assets of bankrupt Murray Inc., which was a major buyer of
Briggs and Stratton equipment, Reuters reported. Milwaukee-based Briggs
and Stratton said it was discussing possible acquisitions with Murray
that could entail a $30 million loss in the second quarter of 2005. The
company, however, gave no assurance that a deal would be completed, the
newswire reported.
Sierra Pacific Sues Banks for Alleged Enron Role
Sierra Pacific Resources has alleged in a lawsuit that 13 investment
banks conspired with Enron Corp. to inflate its financial performance
and hide growing debt problems in the late 1990s and early 2000s,
Reuters reported. The suit did not specify an amount of damages but will
claim “hundreds of millions of dollars subject to further review
through discovery,” Michael Yackira, executive vice president and
CFO of Sierra Pacific, said on Monday, the newswire reported.
Canadian Court Approves Deutsche Bank Plan for Stelco
An Ontario court approved Deutsche Bank AG’s bailout plan for
Stelco Inc. yesterday, a bid that serves as a benchmark that other
suitors for Canada’s largest steelmaker would have to surpass,
Reuters reported. In his endorsement, Justice James Farley said the
German bank’s C$900 million ($756 million) bid would provide
Stelco with the stability required by its employees, retirees, suppliers
and customers. Stelco, which entered bankruptcy protection in January,
rejected an amended joint bailout plan from GMP Capital and GE Canada
Finance on Monday because it said the offer fell short of Deutsche
Bank’s financing plan, the newswire reported.
Lexington REIT to Take $2.8 Million Charge
Lexington Corporate Properties Trust, a real estate investment trust,
said on Monday it would take a fourth-quarter charge of $2.8 million due
to a bankruptcy filing by a tenant, Reuters reported. Lexington said
VarTec Telecom Inc., Lexington’s current tenant at its Dallas,
Texas, office property, filed a motion in the U.S. Bankruptcy Court in
the Northern District of Texas to reject the lease for the property.
Lexington said it still expects to generate funds from operations of
$1.85-$1.90 a share, but it expects to incur a fourth-quarter noncash
charge of about $2.8 million due to the write-off of deferred rent
receivable and unamortized lease costs.