src='/AM/Images/headlines/headline.gif' />
April 25, 2005
Senate Committee to Hold Hearing on Asbestos
Tomorrow, the Senate Judiciary Committee will hold a hearing on the
bill, which Judiciary Chairman Arlen Specter (R–Pa.) formally
introduced last week, followed by a Thursday markup. Specter, along with
co-sponsors including Judiciary ranking member Patrick Leahy
(D–Vt.), have vowed to hold firm against amendments that would
alter the “core principles” of the bill. But several
conservative Republicans on the panel have indicated they will try to
modify the bill in committee.
Reuters reported that the AFL-CIO labor federation said on Friday it
opposed recently introduced asbestos legislation. AFL-CIO said in a
statement that the bill “fails to ensure victims just and timely
compensation and would leave tens of thousands of individuals with no
remedy at all.”
MCI Tentatively Accepts Qwest Bid
MCI Inc. tentatively embraced a takeover bid from Qwest
Communications International Inc., declaring the Qwest offer of $9.74
billion, or $30 a share, superior to the accepted merger with the far
larger Verizon Communications Inc., the Wall Street Journal
reported. However, Verizon is likely to raise its current bid of $7.5
billion, or $23.10 a share, possibly later this week, people familiar
with the situation said.
UAL Reaches Pact to Hand Over Pensions to U.S.
UAL Corp.’s United Airlines and a federal pension insurer
announced a settlement that would allow the airline to hand over its
four underfunded pension plans to the government, the Wall Street
Journal reported.
While the move needs approval from a bankruptcy-court judge and is
certain to be contested by some of the airline’s unions and
retirees, the shedding of $9.8 billion of retirement obligations would
represent a huge step in UAL’s efforts to lower its costs and
attract funding to exit from chapter 11 this fall. Giving up the plans
would save the company $645 million a year for the next five years, it
has said. Michael Kushner, an employee-benefits attorney for law firm
Coudert Brothers LLP, predicted that if UAL succeeds in side-stepping
its pension liabilities, the rest of the big airlines that offer such
costly defined-benefit retirement plans “will follow suit,”
the newspaper reported.
Drunken Driver Dodges Paying Medical Bills of Victim by Filing
Bankruptcy
A judge has ruled a drunken driver does not have to pay the medical
bills of a woman he injured because he filed for bankruptcy, KUTV
reported. The decision in favor of Nicholas Joshua Cabrera has
prosecutors worried that others will do the same to avoid paying
restitution to crime victims. Read the full article at
href='http://kutv.com/topstories/local_story_112144423.html'>kutv.com/topstories/local_story_112144423.html.
New Bankruptcy Law Protects IRA, College Savings, Giving Cautious
Investors Reason to Save
The new bankruptcy law provides broad protection for retirement and
education-savings accounts, giving cautious investors one more reason to
save, the Associated Press reported. Under the new law, 529 plans and
Coverdell accounts generally won’t be subject to creditors when
investors file for bankruptcy. Also, most assets in individual
retirement accounts will be excluded from bankruptcy proceedings, giving
these vehicles similar protection to 401(k) savings plans and pensions,
the newswire reported.
Borrowers Still Deep in the Hole, but Some Are Paying Down Debt
A commentary in the Daily Transcript provides insight
into the world of borrowers who are finally taking back control of their
personal finances. Read the full article at
href='http://www.sddt.com/Commentary/article.cfm?Commentary_ID=10&SourceCode=…'>www.sddt.com/Commentary/article.cfm?Commentary_ID=10&SourceCode=2005042….
U.K. Corporate Insolvencies to Rise in 2005—Report
The number of U.K. business failures rose in the first three months
of 2005, up for the second straight quarter, while weak consumer
confidence and the collapse of MG Rover are set to trigger more
insolvencies this year, according to Experian, Reuters reported.
Research published today by the credit-checking specialist showed the
retail industry in particular had been hit hard by lower consumer
confidence and spending. Business failures in the food retail sector
rose 53 percent year-on-year, with non-food insolvencies up nearly 30
percent.
Bankruptcy Court Sets New Bid Plan for WestPoint
WestPoint Stevens Inc. said on Friday that bankruptcy titan Wilbur
Ross’ original plan to buy the home goods company had been
terminated and a U.S. Bankruptcy Court had approved modified bidding and
notice procedures for WestPoint’s sale, Reuters reported.
Potential buyers of the bankrupt company now have a deadline of noon
(1400 GMT) on June 10 to make their bids, WestPoint Stevens said in a
statement.
US Air Confirms Talks with America West
Bankrupt US Airways on Friday confirmed it was in talks with America
West Airways on a “strategic transaction,” but said there is
no assurance a deal will be reached, Reuters reported. Reports last week
said the two carriers were in advanced discussions on a merger, the
newswire reported.
Calpine Says Bankruptcy Rumors Are Untrue
Calpine Corp. said on Friday market rumors that the independent power
producer is planning to file for bankruptcy are untrue, Reuters
reported. Calpine said it is in compliance with all of its bond
indentures and has no plans to file for bankruptcy protection. The
company moved to quash the rumors after its stock plunged 31 percent to
its lowest level since October 2002 and its bond prices fell.