May 14, 2004
Consumer Prices Rise
Modestly in April
Consumer prices rose by a modest 0.2 percent in April,
the Associated Press reported. The rise in the Consumer Price
Index, the government's most closely watched inflation barometer,
followed a 0.5 percent increase in March, the Labor Department reported
today. Excluding energy and food prices, the 'core' rate of inflation
rose by 0.3 percent in April, on top of a 0.4 percent rise the month
before. In the first four months of this year, consumer prices rose at
an annual rate of 4.4 percent, compared with a 1.9 percent increase for
all of last year. Core prices went up at a rate of 3 percent, outpacing
the 1.1 percent rise for 2003, the newswire reported.
Airline Bailout Fails to Do
the Job, Some Experts Contend
After Sept. 11, 2001, Congress
approved a $15 billion bailout program meant to ensure the survival of
the airline industry with grants and loan guarantees. But the bailout
program has not accomplished anything like that, according to a variety
of experts, including industry executives, labor leaders, and members of
Congress, the New York Times reported. Instead, the program has
been used in part as a life-support system for weak airlines that were
struggling before Sept. 11 and are still struggling, according to the
Times. Though demand for air travel has recovered nearly to
pre-attack levels, the industry as a whole faces yet another financial
crisis, because of low-cost competition and rising fuel
costs.
UAL Seeks Extension of
Bankruptcy Loan
UAL Corp., parent of United
Airlines, has asked a bankruptcy court judge to extend $1 billion in
special bankruptcy financing until the end of the year from mid-year,
according to court documents, Reuters reported. The move is aimed at
providing enough funds to operate until the company's plan of
reorganization is approved, a UAL spokeswoman said. The airline, which
has been operating in chapter 11 since December 2002, had initially
envisioned an 18-month reorganization. The amendment would extend the
financing to Dec. 31 from June 30, the newswire reported.
Slim Raises Stake in MCI to
13.8 Percent
Mexican telecommunications
magnate Carlos Slim has boosted his stake in MCI Inc. to 13.8 percent,
according to a filing with U.S. market regulators on Thursday, Reuters
reported. Slim, who owns a controlling stake of Telefonos de Mexico,
raised his MCI stake from the 13.1 percent he owned as of last week. He
now owns 43.4 million shares of MCI, which emerged from bankruptcy last
month.
Bankruptcy Court Confirms Today's Man Liquidation
Plan
The court overseeing Today's Man Inc.'s
bankruptcy case confirmed the clothing retailer's plan of liquidation
that outlines how creditors will be paid, according to court papers, the
Associated Press reported. An order yesterday from the U.S. Bankruptcy
Court in Camden, N.J., cleared the way for creditors of the company and
its subsidiaries to be paid. Under the plan, holders of priority claims
and allowed secured claims will receive full compensation. Shareholders
of the company's common stock will receive no payment and the shares
will be canceled, the newswire reported.
Delta Moves to Avoid Pilot
Shortage
Delta Air Lines
size='3'>said it signed an agreement with its pilots union to relax
certain contract rules in order to avoid a potential pilot shortage
during the upcoming summer and fall travel season, the Wall Street Journal reported. The potential problem arises
from the possibility of a higher-than-normal number of pilot retirements
this month and in June, which could cause a shortage of pilots needed to
fly certain high-paying categories of aircraft. The agreement allows the
company more leeway to cancel vacations and adjust training schedules in
order to keep its cockpit seats filled. The company and union, however,
still remain far apart in talks over wage cuts the company says it needs
in order to survive, according to the online
newspaper.
United Airlines Names
Veteran As COO
United Airlines on Thursday said it named company
veteran Peter McDonald to the position of COO, Reuters reported.
McDonald most recently served as executive vice president of
operations at UAL Corp.'s United, which is still in chapter 11
bankruptcy protection. As chief operating officer,
McDonald has responsibility for all airport, maintenance, onboard,
flight and system operations, as well as cargo, the low-fare airline
Ted, strategic sourcing, cost-savings initiatives and safety and
security.
Oglebay Norton Seeks Until May
25 To File Plan Summary
Oglebay Norton Co. has
asked a bankruptcy court to give it until May 25 to file a disclosure
statement for its recently proposed chapter 11 plan, according to
papers. According to the terms of the plan filed April 27 with the U.S.
Bankruptcy Court in Wilmington, Del., the reorganization must become
effective by Sept. 15. The company sought more time for the disclosure
statement when it filed the plan. The plan is also conditioned upon the
company's receipt of an as-of -yet undetermined amount of funds from the
issuance of new preferred stock. Proceeds from the stock offering would
be used to make certain payments to creditors under the plan.
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American Commercial
Lines Seeks More Time For Chapter 11 Plan
American Commercial Lines LLC
is asking a bankruptcy court for two more months to file its chapter 11
plan without outside interference, according to court papers. The marine
transportation company, which filed for bankruptcy protection in 2003,
wants to extend its deadline to July 27. It also wants until Sept. 27 to
solicit creditors for their votes. The court previously extended the
company's deadlines to file a plan and lobby creditors to May 28 and
July 29, respectively, according to the company's motion filed May 5 in
the U.S. Bankruptcy Court in Indianapolis.
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