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May 30, 2005
Opponents Criticize the Asbestos Bill
Several consumer, environmental and victims’ groups criticized
on Friday the asbestos bill that the Senate Judiciary Committee approved
on Thursday, saying it would not compensate all asbestos victims,
CongressDaily reported. Mike Harbut, the co-director of the
National Center for Vermiculite and Asbestos-Related Cancers, said the
medical criteria included in the bill to determine eligibility would
exclude some individuals with asbestos-caused illnesses. People exposed
to asbestos near facilities where asbestos was shipped from Libby,
Mont., would be denied payment under the fund, according to Richard
Wiles, senior vice president of the Environmental Working Group.
“We’re going to keep this issue in the forefront,” he
said. “These people are literally denied any access to any
assistance.” The bill passed the committee with the support of all
Republicans and three Democrats. It has not yet been scheduled for a
floor vote, and several Republicans intend to alter the legislation
before it passes the Senate, the newswire reported.
Rising Foreclosures Amid the Housing Boom
For some American homeowners, the greatest housing boom in U.S.
history has delivered riches, the Washington Post reported.
But there’s a dark side—a sharp rise in foreclosures that is
destroying the single greatest generator of personal wealth for most
Americans. Read the full article at
href='http://www.washingtonpost.com/wp-dyn/content/article/2005/05/29/AR20050…'>www.washingtonpost.com/wp-dyn/content/article/2005/05/29/AR200505290097….
Change in Law Leads Lawyers to End Bankruptcy Work
Lawyers in Missoula, Mont. say federal changes in bankruptcy law this
fall will cause them to stop handling personal bankruptcy cases, the
Billingsgazette.com reported. Dan Morgan and Tom Trigg believe
bankruptcy work stands to become too convoluted and risky. Read the full
article at
href='http://www.billingsgazette.com/index.php?tl=1&display=rednews/2005/05/2…'>www.billingsgazette.com/index.php?tl=1&display=rednews/2005/05/29/build….
Wellington Management Offers Key Backing to America West, US
Air
The proposed merger of US Airways Group Inc. and America West
Holdings Corp. received a vote of confidence on Friday when Wellington
Management Co. LLP pledged $150 million in new equity to the combined
company, boosting to $500 million the amount of equity raised from a
total of five providers, the Wall Street Journal reported.
The addition of Wellington, a Boston-based investment management firm
with $423 billion of funds under management, was disclosed in an amended
filing with the U.S. Bankruptcy Court in Alexandria, Va.
For Scrushy, Jury Could Still Give Verdict
The jury in the trial of Richard M. Scrushy, the former chief of
HealthSouth, will resume deliberations after telling the judge in notes
that it was having trouble reaching a consensus on a conspiracy charge,
the New York Times reported. Read the full article at
www.nytimes.com.
U.S. at Odds With Amtrak over Financial Projection
The Bush administration urged Amtrak Thursday to immediately find new
cost cuts to shore up cash reserves, projecting the railroad could be
substantially in the red by summer’s end, Reuters reported. The
Bush administration is demanding Amtrak enact a series of business
reforms—many of which it has agreed to do—to win support for
subsidies needed to survive. Amtrak received $1.2 billion in aid this
year and is seeking just under $2 billion for 2006, a figure Congress is
unlikely to support.
Default Risk Seen Rising at Small U.S. Companies
Increasingly easy credit for small U.S.companies could be creating a
gathering storm of future defaults, even as risks for the largest
corporations remain low, Reuters reported. Banks, hedge funds and other
loan funds have invested capital into small companies as growth
prospects for larger businesses fade. Access to cash is helping keep
default rates low for now, but it could also be supporting unstable
companies that may run into trouble when credit tightens, bankruptcy
experts said. “All of this works fine as long as interest rates
are low and demand or consumption is high,” said Bryan Marsal of
Alvarez & Marsal. “But if either of those two things come
unraveled—if interest rates rise or consumption
deteriorates—you’re going to see a sharp increase in default
rates,” the newswire reported.
Film, Camera Maker Agfaphoto Files for Bankruptcy
Hit by the shift to digital photography, AgfaPhoto GmbH, a maker of
film and disposable cameras, filed for bankruptcy-court protection on
Friday, the Associated Press reported. A court in the company’s
home town of Leverkusen, outside Cologne, opened bankruptcy proceedings
that will determine whether the company survives. AgfaPhoto has 2,400
employees worldwide, 1,800 of them in Germany.
Catholic Diocese of Tucson Files Revised Bankruptcy Documents
Three Yuma brothers who say they were repeatedly raped by a priest
will each receive at least 600 thousand dollars, KOLDTV.com reported.
The cash payout is outlined in revised bankruptcy documents filed by the
Roman Catholic Diocese of Tucson. The brothers and other victims of
clergy sexual abuse who have valid claims against the diocese could be
paid from a total pot of more than 20 million dollars. The amended
statement and chapter 11 plan were filed on Thursday in federal
court.
Universal Automotive Files for Bankruptcy
Universal Automotive Industries Inc. said on Friday it has filed for
bankruptcy and is entertaining offers from potential buyers,
dailysouthtown.com reported. The company, which has incurred losses the
past several years, said it had secured financing to wind down its
operations, either through a sale of its assets or a liquidation.
Universal filed chapter 11 on Thursday in federal court in New Jersey.
The company listed debts in excess of $50 million, and assets of under
$50,000.
Retrial of Michael Rigas Set for October
A U.S. judge has set an Oct. 27 retrial date for Michael Rigas, a son
of Adelphia Communications Corp. founder John Rigas, after a mistrial in
the case last year, prosecutors said on Friday, Reuters reported.
Michael Rigas, the cable company’s former COO, faces a new trial
before U.S. District Judge Leonard Sand after a federal jury deadlocked
on most of the counts against him in July 2004. The jury acquitted him
on charges of wire fraud and conspiracy, but failed to reach a verdict
on the securities fraud and bank fraud counts.