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March 9, 2005
Bankruptcy Bill Nears Final Senate Vote
The Republican-controlled Senate cleared the way for a final vote as
soon as today on an industry-backed bill to make it harder for consumers
to wipe out debt through bankruptcy, the Washington Post
reported. Senators voted 53 to 46 against an amendment offered by Sen.
Charles E. Schumer (D–N.Y.). The measure would have made it harder
for people who break the law while protesting abortion to use bankruptcy
to avoid paying court-ordered fines.
In another vote yesterday, 14 Democrats joined Republicans in a
69-to-31 majority to limit to 30 hours further debate on the
legislation. Democrats intend to offer dozens of amendments in the
debate time remaining, but Senate Republicans, led by Sen. Charles E.
Grassley (R–Iowa), think they have the votes to defeat them and
then easily pass the legislation.
href='http://www.washingtonpost.com/wp-dyn/articles/A17567-2005Mar8.html'>Read
the full article.
A commentary on the bankruptcy bill, “Bankrupt—and
Responsible,” under the Review and Outlook column of today’s
Wall Street Journal, is available at
href='http://www.wsj.com/'>www.wsj.com (subscription required).
Specter Continues to Adjust Asbestos Measure Language
Senate Judiciary Chairman Arlen Specter (R–Pa.) continued
tweaking language on his asbestos bill yesterday in an effort to win the
support of Republicans on his panel, while trying to secure a Democratic
co-sponsor, CongressDaily reported. The status of
negotiations remained fluid late Tuesday, with some Republicans hopeful
they would see a revised draft bill later that evening. Specter has
scheduled asbestos legislation as a discussion topic during a committee
business meeting Thursday, but it could be held over to a future
meeting, Senate staffers said. If Specter does not mark up the bill by
next week—before Congress breaks for its two-week Easter
recess—meeting Senate leaders’ target for a floor vote by
the week following the break could be difficult, the newswire
reported.
Jury Still Undecided in Trial of Ebbers
Jurors deciding the fate of former WorldCom Inc. CEO Bernard Ebbers
yesterday finished their third day of deliberations without a verdict in
the securities fraud case, Reuters reported. The jury asked the court to
provide transcripts of testimony from several witnesses, including
Ebbers, who stands accused of fraud in connection with an $11 billion
accounting scandal at WorldCom. Jurors also wanted to know what trial
exhibits had been taken directly from Ebbers’ former office,
according to a note they sent to the court. Jury deliberations will
resume today.
Parmalat Says U.S. Bankruptcy Court Approves Reorganization
Plan
Bankrupt dairy group Parmalat yesterday said its U.S. division,
Farmland Diaries LLC, plans to emerge from chapter 11 this month after a
U.S. Bankruptcy Court approved its reorganization plan, Reuters
reported. The plan gives control of Farmland’s equity to a
syndicate of lenders led by GE Commercial Finance, a unit of General
Electric Co., it said. The milk and dairy producer said it obtained $100
million in exit financing from two lenders, including a $45 million loan
from GE Commercial Finance.
WHX Files for Chapter 11 Bankruptcy Protection
Holding company WHX Corp. said yesterday it filed a voluntary
petition to restructure under chapter 11 bankruptcy protection to reduce
its debt, simplify its cost structure, decrease its overall cost of
capital and gain access to the capital markets, Reuters reported. WHX
said none of its subsidiaries, including its primary business Handy
& Harman, was included in the filing and reorganization plan.
Trial Opens in Retirement Fund Enron Loss Case
An investment company didn’t tell Florida employee retirement
fund officials about its growing fears that something was wrong at Enron
Corp. and continued to put pension dollars into the failing energy
company, the fund's lawyer told a jury yesterday, the Associated Press
reported. The state Board of Administration, which invests the
state’s public employee retirement fund, is suing Alliance Capital
Management, one of several firms it contracted to pick its stocks.
Florida’s public retirement fund is the nation’s fourth
largest. The lawsuit was filed three years ago after pension trustees
learned that Alliance had invested some of the retirement fund in Enron,
even after Wall Street became concerned about the company’s
accounting, the newswire reported.