Submitted by webadmin on Wed, 2004-07-07 00:00

July 7, 2004

Republicans Urge Restraint
on Class Action Bill Amendments

As the Senate began its
long-awaited debate Tuesday night of legislation to overhaul the rules
governing class action lawsuits, Republican sponsors urged their
colleagues to oppose amendments they said could disrupt the bill's
carefully crafted, bipartisan compromise, CongressDaily reported.
Before Tuesday's debate, Majority Leader Bill Frist (R-Tenn.) said his
'tolerance level' for non-germane amendments would be 'very, very low,'
but he said no decisions had been made about what amendments could be
offered. Noting the 'very few' legislative days left in the
session, a Democratic leadership aide said Democrats are interested in
amending the bill to the greatest extent possible to reflect their
priorities, the newswire reported.

Separately,
CongressDaily reported that Senate Commerce Chairman John McCain
(R-Ariz.) and Sen. Joseph Lieberman (D-Conn.) will try to offer their
global warming measure to class action legislation this week, though
opposition from the Senate Republican leadership may derail their
attempt.

Boehner Begins Review Of Cash Balance Pension Plans

House Education and the Workforce Chairman John Boehner (R-Ohio) will
hold a hearing tomorrow on cash balance pension plans as a prelude to a
broad pension bill he plans to introduce next year,
CongressDaily reported. Boehner said the hearing would be an
opportunity to clear up misinformation about cash balance plans, which
he said have gotten a bad -- and undeserved -- reputation. While
traditional pension plans offer employees a set benefit based on years
of service and age that reward workers for long tenure, cash balance
accounts accrue evenly throughout workers' careers and are given to
employees when they leave the company. Cash balance plans generally are
less expensive for employers and benefit a younger, more mobile
workforce. Senate Health, Education, Labor and Pensions Chairman Judd
Gregg (R-N.H.) has said he, too, plans to hold hearings to examine cash
balance plans, the newswire reported.

SEC Inquiry to
Encompass 401(k) Plans

The Securities and Exchange
Commission (SEC) has widened its investigation into mutual funds to
include those held by millions of Americans in retirement accounts, the
New York Times reported. The SEC said yesterday that it had asked
two dozen mutual fund companies to provide details about payments they
may make to ensure that their funds are included in corporate 401(k)
plans. By requesting the materials, regulators want to assess the
prevalence of so-called pay-to-play arrangements among funds and what
effect these deals may have on the performance of retirement
plans.

New Mexico Looking at
Buying into Pipeline

Lawyers for New Mexico say the
state is interested in buying Transwestern Pipeline, owned by a
subsidiary of bankrupt Enron Corp., according to the Associated Press.
The state Investment Council is considering bidding on all or part of
the six-state, 2,400-mile natural gas pipeline owned by Crosscountry
Energy Corp., according to a June 17 state motion in the bankruptcy
proceedings for Houston-based Enron. The state said it could increase
its severance and production tax revenues by as much as $50 million
annually, and by billions over decades, through the purchase.

Provided by Daily Bankruptcy
Review (
href='http://www.djnewsletters.com/trial-form.html?promo=TDBRABI2'>http://www.djnewsletters.com/trial-form.html?promo=TDBRABI2)

Copyright (c) 2004 Dow Jones & Company, Inc. All Rights
Reserved

Kaiser Aluminum Wants
Chapter 11 Exclusivity Through Year-end

Kaiser Aluminum Corp. asked a
court to extend the company's control over its chapter 11 reorganization
through the end of the year, preventing creditors from proffering any
competing plans for turning the company around. In a motion filed with
the U.S. Bankruptcy Court in Wilmington, Del., Kaiser Aluminum asked the
court to give it until Oct. 31 to file a reorganization plan and until
Dec. 31 to solicit creditor votes on the plan. If approved, it would be
a four-month extension of both exclusivity periods and Kaiser's seventh
extension since it filed for chapter 11 bankruptcy protection in 2002,
according to the motion, filed June 30. Under the Bankruptcy Code,
companies in chapter 11 are given an exclusive period that gives
them sole control of the reorganization plan filing process. It is
common for courts to grant several extensions in large complicated
chapter 11 cases.

Portland Diocese Files
Bankruptcy Amid Sex Claims

The Archdiocese of Portland,
struggling to settle scores of sexual abuse charges dating back decades,
on Tuesday said it had filed for bankruptcy in what it believed was the
first such action by a U.S. Roman Catholic diocese, Reuters reported.
The move halts two trials seeking a total of $155 million, that were
slated to start on Tuesday, Archbishop John Vlazny told reporters,
saying bankruptcy would allow the Roman Catholic church to pay all
claims without selling off parish assets.

The archdiocese has paid $21
million from its own funds to settle claims in the last four years and
$53 million over the last five decades, Vlazny said, but insurance
companies have refused to cover some 60 current claims, the newswire
reported.

MCI, Ex-Officers Settle Suit Over
Retirement-plan Losses

MCI and more than a dozen top executives
settled with employees who sued over losses in their retirement plans
that were invested in company stock after the former WorldCom Inc. sank
into scandal and bankruptcy-court protection, the Wall
Street Journal reported. The company and insurers will pay most of
the $51 million settlement on behalf of MCI and former officers and
directors. Former Chief Executive Bernard Ebbers will pay as much as $4
million, according to terms of the settlement. Other parties to the
settlement include former Chairman Bert Roberts and the estate of former
Chief Executive John Sidgmore.

AIR CANADA

Ottawa Silent on
Air Canada Pension Deficit

Canada's federal cabinet did not discuss recommendations that would
allow insolvent Air Canada to take a longer than normal 10 years to
cover its pension plan deficit, Transport Minister Tony Valeri said on
Tuesday, Reuters reported. In mid-May, the Office of the Superintendent
of Financial Institutions recommended Air Canada be granted 10 years,
rather than the usual five, to cover its C$1.2 billion ($902 million)
pension deficit. The change requires cabinet approval to take effect. An
Ontario Superior Court judge approved on Friday Air Canada's C$250
million ($190 million) investment deal with a unit of New York
investment firm Cerberus Capital Management.

Air Canada Says Traffic Up
13.6 Percent In June

Air Canada said on Tuesday its passenger load factor in June was 79.4
percent, its highest level ever for that month, Reuters reported.
Overall passenger traffic climbed 13.6 percent in June to 3.725 billion
revenue passenger miles, compared with 3.279 billion in the same month
last year. Meanwhile, Air Canada added 9.7 percent more capacity.
Montreal-based Air Canada hopes to emerge from bankruptcy protection in
September. It obtained court protection from creditors last year, the
newswire reported.

July 72004

AIR CANADA

Air Canada Says Traffic Up 13.6 Percent In June

Air Canada Says Traffic Up
13.6 Percent In June