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April 12, 2005
Bankruptcy Will Be a Tougher Road, but Few Options Exist
Bankruptcy protection will be harder to get under legislation passed
by the U.S. Senate, CBS MarketWatch reported. But the
alternatives to bankruptcy filing are few, according to
MarketWatch. Read the full article
at
href='http://www.marketwatch.com/news/story.asp?siteid=mktw&dist=moreover&gui…{B321428B-D897-4AF1-B55C-4145D0E11459'>www.marketwatch.com/news/story.asp?siteid=mktw&dist=moreover&guid={B321428B-D897-4AF1-B55C-4145D0E11459}.
Feinstein, Leahy Likely to Support Specter’s Asbestos
Bill
Senate Judiciary Chairman Arlen Specter’s (R–Pa.) effort
to pick up Democratic support for an asbestos bill appeared to be paying
off yesterday, as he discussed the legislation in a meeting with
Democrats, CongressDaily reported. Specter said he would
introduce a revised asbestos bill in a matter of days and plans to mark
it up in committee by the end of the month. After leaving the meeting,
Sen. Dianne Feinstein (D–Calif.) indicated she and Judiciary
ranking member Patrick Leahy (D–Vt.) are likely to approve of the
final product of the drawn-out negotiations, the newswire reported.
Falling Fortunes of the Wage Earner
Beginning in the mid-1990s, pay increases for most workers slowly but
steadily outpaced the rate of inflation, improving the living standards
for nearly all Americans, the New York Times reported. But
an unexpected reversal last year in those gains has set off a vigorous
debate among economists over whether the decline is just a temporary dip
or portends a deeper shift that may cause the pay of average Americans
to lag for years to come. Read the full article at
href='http://www.nytimes.com/'>www.nytimes.com.
United Airlines
United Airlines Asks Judge to Approve Cuts
United Airlines, fighting with its flight attendants over a new
cost-saving contract, yesterday asked a bankruptcy court judge to settle
the matter by allowing United to lower wages and benefits for its 15,500
flight attendants, the Los Angeles Times reported. The
request came in a court filing in which United again asked U.S.
Bankruptcy Judge Eugene Wedoff in Chicago for permission to wring
additional concessions from its 6,800 mechanics and 19,500 other ground
workers. United, a unit of UAL Corp., says it needs $725 million in
additional annual savings from all of its worker groups to emerge from
chapter 11 bankruptcy proceedings.
United Still Sees Fall Emergence from Chapter 11—CEO
UAL Corp., parent of United Airlines, is in the midst of
“rigorous” negotiations with its labor groups, but still
sees an exit from bankruptcy by fall, the company’s CEO said
yesterday, Reuters reported. The carrier is engaged with each of its
labor unions and is pursuing various cost savings plans with them, Glenn
Tilton said. United, in bankruptcy since December 2002, has said it
needs to secure $725 million in annual labor savings to exit chapter 11,
the newswire reported.
American Banknote Corporation Emerges from Bankruptcy
American Banknote Corporation announced in a press release that its
plan of reorganization was confirmed on Friday, April 8, 2005, by the
United States Bankruptcy Court in Delaware. Under the terms of the
reorganization American Banknote Corporation’s debt will be
reduced to about $1 million from over $108 million. At the same time,
the company raised an additional $16 million of cash, in the form of new
private equity investments.
EaglePicher Files Chapter 11
EaglePicher Holdings Inc. and EaglePicher Incorporated (collectively
EaglePicher) announced in a press release that they and several of their
affiliates have voluntarily filed for chapter 11 bankruptcy protection.
EaglePicher said the filing would facilitate its previously planned
divestiture of a number of its operating units and enable it to more
effectively restructure its business. In papers filed with the U.S.
Bankruptcy Court in the Southern District of Ohio in Cincinnati, the
company said it has received a commitment for up to $50 million in
debtor-in-possession financing from a group of lenders led by Harris
Trust and Savings Bank.
Nevadans Could Be Among First to Feel Effect of Bankruptcy Law
Nevadans could be among the first to feel the effect of the coming
new bankruptcy law, the Reno Gazette–Journal
reported. The legislation would restrict the homestead exemption in
states to $125,000 if the person in bankruptcy bought his or her
residence less than three years and four months before filing. Under
current law, people in bankruptcy can shield up to $200,000 of their
home’s value from creditors. Coupled with rising home values in
the state, the bill could force more Nevadans to sell their homes to pay
creditors. “That’s going to have a bigger effect than
anything else in the bill,” Reno bankruptcy attorney David
Rankine told the newspaper.
Si Tanka Files for Bankruptcy Protection
Officials at Si Tanka University have filed for bankruptcy protection
following the Cheyenne River Sioux Tribal Council’s decision to
declare the school in violation of its charter, the Associated Press
reported. Si Tanka defaulted on $6.6 million worth of loans and faces a
$2 million federal tax lien. If it can’t find the money, the tribe
might be able to take control of the school. In addition, tribal council
members said the university failed to meet the terms of a $400,000 loan
the tribe arranged last month, the newswire reported.
Heisley Venture Files for Bankruptcy
Heisley Venture, a Columbus, Ga.–based snack food maker, which
is 80 percent owned by a fund controlled by Chicago-based investor
Michael Heisley, has filed for bankruptcy, the Memphis Business
Journal reported.
Core-Mark Posts 2004 Combined Revenue at $4.2 Billion
Core-Mark Holding Company Inc. yesterday said it posted $4.2 billion
in revenue for periods in 2004 after its emergence from bankruptcy,
according to a preliminary unaudited report, Reuters reported.
Core-Mark, a North American distributor to the convenience retail
industry, said preliminary unaudited revenue for January 2004 to Aug.
22, 2004 was $2.7 billion. The company expected to post revenue of $1.5
billion between Aug. 23, 2004 and Dec. 31, 2004, when it was part of the
Fleming Companies bankruptcy.
Global Crossing Settles With Regulators
Global Crossing Ltd. has reached a settlement with federal
regulators, with three former executives agreeing to pay fines but with
no finding of fraud in the ‘capacity swap’ deals made before
the telecommunications company collapsed in bankruptcy, the
Associated Press reported. In the agreement announced
yesterday, the company pays nothing but former CEO Thomas Casey,
ex–Chief Financial Officer Dan Cohrs and former Executive Vice
president of Finance Joseph Perrone each pay a $100,000 civil fine. They
were not required to admit to any wrongdoing, however, the newswire
reported
MCI Said to Want Higher Offer from Verizon
MCI board is likely to seek a higher takeover offer from Verizon
Communications, the New York Times reported. On Saturday,
Verizon agreed to buy out the company’s biggest shareholder,
Carlos Slim Helú, for $25.72 a share, 11 percent more than it
said it would pay per share for the rest of the company. After buying
Slim’s stake, Verizon would become MCI’s largest
shareholder.
Ex-Enron Executives Fight Shareholder Settlement
Lawyers for two former Enron Corp. executives, including CFO Andrew
Fastow, fought a proposed $168 million settlement in a shareholder
lawsuit against some former Enron directors on Monday, arguing that it
would deplete funds to pay their legal fees, Reuters reported. U.S.
District Judge Melinda Harmon heard three hours of arguments on the
proposal, but did not immediately rule to approve or disapprove it.
PG&E Enters $1 Billion Revolving Credit Facility
PG&E Corp. said yesterday its Pacific Gas & Electric Co. unit
entered into a $1 billion revolving credit facility to replace an $850
million credit agreement entered on March 5, 2004, before the
unit’s chapter 11 bankruptcy reorganization plan became effective,
Reuters reported. The new credit includes $600 million for letters of
credit and $100 million for loans made available on a same-day basis and
repayable within 30 days. The new credit agreement will have a term of
five years, the newswire reported.