Judge postpones sale of Rangers baseball team

June 26, 2010 By Leave a Comment

A group led by team president and Hall of Fame pitcher Nolan Ryan was set to pay about $575 million for the Rangers.

“The court understands that additional time for mediation could possibly lead to the proposal of a consensual plan in this case,” Judge Michael Lynn wrote in an order.

Mediation will begin on July 16 and a hearing on confirmation of the sale is scheduled on July 22, the court documents show.

A hearing on the sale of the group was originally scheduled for July 9.

The Rangers filed for Chapter 11 bankruptcy protection on May 24 to ease owner Thomas Hicks’ proposed sale of the team to Nolan Ryan and Chuck Greenberg, a Pittsburgh lawyer.

However, Hicks’ secured lenders, led by New York-based distressed debt investor Monarch Alternative Capital LP, oppose it, saying it shortchanges them.

The lender group opposing the sale also includes JPMorgan & Chase Co.

Earlier in June, Andrew Leblanc, a lawyer representing secured lenders, told the bankruptcy court a rival bidder contacted that group to show a readiness to bid at auction for the Rangers. The bidder was not identified.

Houston businessman Jim Crane had outbid the group led by Ryan and Greenberg for the Rangers, according to people familiar with the bid, who declined to be named because it had not been made public.

The case is In re: Texas Rangers Baseball Partners, U.S. Bankruptcy Court, Northern District of Texas, No. 10-43400.

(Reporting by Sakthi Prasad in Bangalore; Editing by Michael Shields)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

U.S. judge postpones sale of Rangers baseball team

June 26, 2010 By Leave a Comment

June 25 (Reuters) – A U.S. judge postponed the proposed sale of the bankrupt Texas Rangers, saying the professional baseball team should first negotiate with lenders opposing the deal, court documents show.

A group led by team president and Hall of Fame pitcher Nolan Ryan was set to pay about $575 million for the Rangers.

“The court understands that additional time for mediation could possibly lead to the proposal of a consensual plan in this case,” Judge Michael Lynn wrote in an order.

Mediation will begin on July 16 and a hearing on confirmation of the sale is scheduled on July 22, the court documents show.

A hearing on the sale of the group was originally scheduled for July 9.

The Rangers filed for Chapter 11 bankruptcy protection on May 24 to ease owner Thomas Hicks’ proposed sale of the team to Nolan Ryan and Chuck Greenberg, a Pittsburgh lawyer.

However, Hicks’ secured lenders, led by New York-based distressed debt investor Monarch Alternative Capital LP, oppose it, saying it shortchanges them. [ID:nN04110428]

The lender group opposing the sale also includes JPMorgan & Chase Co (JPM.N).

Earlier in June, Andrew Leblanc, a lawyer representing secured lenders, told the bankruptcy court a rival bidder contacted that group to show a readiness to bid at auction for the Rangers. The bidder was not identified.

Houston businessman Jim Crane had outbid the group led by Ryan and Greenberg for the Rangers, according to people familiar with the bid, who declined to be named because it had not been made public. [ID:nN04110428]

The case is In re: Texas Rangers Baseball Partners, U.S. Bankruptcy Court, Northern District of Texas, No. 10-43400. (Reporting by Sakthi Prasad in Bangalore; Editing by Michael Shields))

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Research and Markets: an Essential Report Analyzing the US Airlines Industry

June 3, 2010 By Leave a Comment

DUBLIN–(Business Wire)–
Research and Markets
(http://www.researchandmarkets.com/research/170ff1/analyzing_the_us_a) has
announced the addition of the “Analyzing the US Airlines Industry” report to
their offering.

Air travel remains a large and growing industry. It facilitates economic growth,
world trade, international investment and tourism and is therefore central to
the globalization taking place in many other industries. In the past decade, air
travel has grown by seven percent per year. Travel for both business and leisure
purposes grew strongly worldwide.

The US Airlines Industry has grown dramatically since the end of World War II.
In 1945, the major airlines flew 3.3 billion revenue passenger miles (RPMs). By
the mid 1970s, when deregulation was beginning to develop, the major carriers
flew 130 billion RPMs. By 1988, after a decade of deregulation, the number of
domestic RPMs had reached 330 billion.

Today the domestic industry in the US is a low cost, low fare environment. Most
of the major airlines have undergone cost restructuring, with United Airlines
obtaining employee concessions in exchange for equity ownership. Some airlines
sought the protection of Chapter 11 bankruptcy to restructure and reduce costs
and then emerged as strong low-cost competitors. The majority have entered into
cross-border alliances to improve profitability through synergy benefits.

Aruvian’s Research presents a new research report on Analyzing the US Airlines
Industry. Complete with a PEST Framework Analysis and a Porter’s Five Forces
Strategy Analysis, this report is a powerhouse of information on the US Airlines
Industry. Research data compiled and presented in the report include
comprehensive competition analysis of the US Airlines Industry, industry
statistics, market profile, market trends, growth opportunities, challenges
facing the industry, and much more.

Accompanying the analysis of the US Airlines Industry is a brief profile of the
Global Airlines Industry as well, which helps the reader place the US Airlines
Industry in a global scenario. A profile of the rise of Low Cost Carriers in the
US Airlines Industry is included in the report as well, increasing the overall
understanding of the entire industry.

The analysis of the major players in the industry and a future outlook for the
sector, completes this essential must-have research report on the US Airlines
Industry.

Key Topics Covered:

A. Executive Summary B. Introduction to the Global Airlines Industry C.
Introduction to the US Airlines Industry D. Competition in the Industry E.
Issues, Trends & Growth Opportunities in the Industry F. US Airlines Industry:
PEST Framework Analysis G. Porters Five Forces Strategy Analysis H. The
Influence of the Airlines Industry on American Companies I. The Emergence of Low
Cost Carriers (LCC) in the US J. Leading Industry Contributors K. US Airlines
Industry: Future Perspective L. Appendix M. Glossary of Terms

Companies Mentioned:

* AMR Corporation
* Continental Airlines, Inc.
* Delta Air Lines, Inc.
* Southwest Airlines Co.
* UAL Corporation
* US Airways Group, Inc.
* Northwest Airlines

For more information visit

http://www.researchandmarkets.com/research/170ff1/analyzing_the_us_a

Research and Markets
Laura Wood, Senior Manager,
press@researchandmarkets.com
U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716

Copyright Business Wire 2010

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

Kaiser Aluminum Corporation Announces Filing of Shelf Registration Statement for…

April 3, 2010 By Leave a Comment

Kaiser Aluminum Corporation Announces Filing of Shelf Registration Statement for
VEBA Trust

FOOTHILL RANCH, Calif., April 2, 2010 (GLOBE NEWSWIRE) — Kaiser Aluminum
Corporation (Nasdaq:KALU) today announced the filing of a shelf registration
statement covering the possible sale from time to time by a voluntary employees’
beneficiary association (VEBA) trust of up to 4,392,265 shares of Kaiser
Aluminum’s common stock. The shares being registered were distributed by Kaiser
Aluminum to the VEBA trust when the Company emerged from chapter 11 bankruptcy
in July 2006. The filing of the registration statement by Kaiser Aluminum was
made in response to a demand by the VEBA trust under a registration rights
agreement entered into by Kaiser Aluminum and the VEBA trust in July 2006.

Pursuant to a stock transfer restriction agreement that Kaiser Aluminum entered
into with the trustee of the VEBA trust in July 2006, the VEBA trust may not
sell more than 1,321,485 shares of Kaiser Aluminum’s common stock in any
12-month period without consent of Kaiser Aluminum’s board of directors.
Currently, under these restrictions, the VEBA trust is limited to the sale of
868,285 shares prior to March 24, 2011.

The registration statement relating to these securities has been filed with the
Securities and Exchange Commission, but has not yet become effective. These
securities may not be sold nor may offers to buy be accepted prior to the time
the registration statement becomes effective. You may obtain a copy of the
prospectus included in the registration statement from the Securities and
Exchange Commission’s website at http://www.sec.gov. Alternatively, you may
obtain a copy of the prospectus included in the registration statement by
writing Kaiser Aluminum at the following address: Investor Relations Department,
Kaiser Aluminum Corporation, 27422 Portola Parkway, Suite 200, Foothill Ranch,
California, 92610-2831.

Kaiser Aluminum Corporation, headquartered in Foothill Ranch, Calif., is a
leading producer of semi-fabricated specialty aluminum products, serving
customers worldwide with highly-engineered solutions for aerospace and
high-strength, general engineering, and custom automotive and industrial
applications. The Company’s North American facilities produce value-added sheet,
plate, extrusions, forgings, rod, bar and tube products.

The Kaiser Aluminum Corporation logo is available at

http://www.globenewswire.com/newsroom/prs/?pkgid=6081

Certain statements in this press release may constitute “forward-looking
statements” within the meaning of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements can be identified by the use of
forward-looking terminology such as “expects,” “may” or “will” or the negative
of the foregoing or other variations or comparable terminology, or by
discussions of strategy or intentions. These statements are based on the beliefs
and assumptions of Kaiser Aluminum’s management based on information available
to management at the time such statements are made. Readers are cautioned that
any such forward-looking statements are not guarantees of future performance or
events and involve significant risks and uncertainties, and that actual results
or events may vary materially from those in the forward-looking statements as a
result of various factors. These factors include (a) conditions in the capital
markets; (b) general economic and business conditions, including conditions in
the aerospace and other end markets Kaiser Aluminum serves; (c) changing prices
and market conditions; and (d) other factors summarized in Kaiser Aluminum’s
reports filed with the Securities and Exchange Commission, including Kaiser
Aluminum’s Annual Report on Form 10-K for the fiscal year ended December 31,
2009 and Current Report on Form 8-K filed with the Securities and Exchange
Commission on March 29, 2010. Kaiser Aluminum does not know when or in what
amounts the VEBA trust may sell shares of its common stock, and, subject to the
terms of the stock transfer restriction agreement described above, the VEBA
trust will act independently of Kaiser Aluminum in making decisions with respect
to the timing, manner and size of such sales. All information in this release is
as of the date of the release. Kaiser Aluminum undertakes no duty to update any
forward-looking statement to conform the statement to actual results or events
or changes in its expectations.

CONTACT: Kaiser Aluminum Corporation
Investor Relations Contact:
Melinda C. Ellsworth
(949) 614-1757

FD
Public Relations Contact:
Dave Quast
(646) 421-5341

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , , , , , ,

Michael Vick Eagles | Mike Vick Signs With Eagles | Mike Vick | Michael Vick | Espn | Philadelphia Eagles | Michael Vick Buffalo Bills | Eagles | Mike Vick Signs With Cowboys | Mike Vick Signs | Mike Vick News | Michael Vick- Eagles Agree to 2-Year Deal

August 14, 2009 By Leave a Comment

Michael Vick Eagles | Mike Vick Signs With Eagles | Mike Vick | Michael Vick | Espn | Philadelphia Eagles | Michael Vick Buffalo Bills | Eagles | Mike Vick Signs With Cowboys | Mike Vick Signs | Mike Vick News | Michael Vick- Eagles Agree to 2-Year Deal

Michael Dwayne Vick is born on 26 June, 1980, in Newport News, Virginia is a professional American football quarterback for the Philadelphia Eagles of the National Football League. He previously played for the Atlanta Falcons for 6 seasons before serving 23 months in prison for his involvement in an illegal dog fighting ring.

In April 2007, Vick was implicated in an extensive and unlawful interstate dogfighting ring that operated over a period of five years. In August 2007, he plead guilty to felony charges, and was indefinitely suspended from the NFL. He was sentenced to 23 months in federal prison, and began his incarceration in November 2007. With loss of his NFL salary and product endorsement deals, combined with previous financial mismanagement, Vick filed for Chapter 11 bankruptcy in July 2008.

Vick was released from prison to home confinement on May 20, 2009. Falcons owner Arthur Blank stated that he did not want Vick on the Falcons, and after attempts to trade him failed, Vick was released. On July 27, NFL Commissioner Roger Goodell conditionally reinstated Vick, and will consider him for full reinstatement by Week 6 of  (Oct. 18-19) the 2009 season at the latest, and possibly as soon as Week 1.

On August 13, 2009, Vick signed a two-year contract with the Philadelphia Eagles. He will earn $1.6 million in his first year and $5 million in his second year. Vick will be able to participate in all team practices and meetings, as well as the Eagles’ last two preseason games. He will then be eligible for reinstatement in week 6.

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

General Growth bankruptcy may revive property deals

April 18, 2009 By Leave a Comment

NEW YORK (Reuters) – Shopping malls sold in bankruptcy by General Growth Properties may finally set prices in a stalled market and release billions of dollars stockpiled for good buys in U.S. commercial real estate.

On Thursday the No. 2 U.S. mall owner, along with 158 of its properties, filed for Chapter 11 bankruptcy protection, ending months of speculation as to when, not if, that would happen. Company executives said they intend to sell some properties.

“The public companies we think are best positioned to capitalize on General Growth’s unraveling are Simon Group Inc, Taubman, Westfield, and Vornado,” J.P. Morgan real estate investment trust (REIT) analysts wrote in a research note.

Representatives from Vornado and Westfield declined to comment. A Taubman representative was not immediately available for comment.

Taubman, which is known for its luxury malls, has one of the healthiest balance sheets among REITs, but its high-end retailers have been among the hardest hit in the U.S. recession.

However, the other three have each raised or retained vast amounts of cash, either through equity offerings, debt issuances or retaining earnings.

“I can see the biggest global players like Simon, possibly some of the specialist pension funds like Calpers or Teachers, Westfield and maybe some opportunistic money like Area Property Partners (formerly Apollo Real Estate) taking a look at this portfolio,” Bruce Nutman, UK head of retail capital markets at CB Richard Ellis Group Inc.

But Simon Chief Financial Officer Stephen Sterrett reiterated what his boss David Simon has said earlier: that Simon $1.2 billion cash and equity raised plus nearly $1 billion in cash savings from a change in its dividend policy was strictly to ensure Simon will navigate the credit crisis.

“I don’t think it’s appropriate for me to comment on assets within their portfolio or potential acquisition opportunities,” Sterrett said. “We would hope that there comes a point in time of the cycle that we would all feel comfortable being offensive. I don’t think we’re to that point yet.”

General Growth President Thomas Nolan said the company has about a handful of properties for sale and J.P. Morgan does not believe the company would be liquidated.

The U.S. commercial real estate market has been at a near standstill as buyers and sellers refuse to make deals for fear of either paying to much or demanding too little. Without trades, the market cannot establish prices, especially in the current environment where the cost of debt financing, if available, has soared.

“Everybody is sort of waiting for a defining moment, and unfortunately it probably takes something like a bankruptcy filing to find out where that is,” said David Csontos, senior vice president of the Investment Sales Division of real estate services firm FirstService Williams.

Other experts said public pension funds, such as Calpers and Teachers’ Pension and Annuity Fund, likely will stay out of the ring, several experts said.

“They have too much in real estate and the least thing that want is exposure to something like that,” said an investment banker who declined to be identified. “They are much more risk adverse than all the other guys.”

Some of them are over-weighted in U.S. commercial real estate. In fact, for the first time in 12 years, U.S. public pension funds in the fourth quarter withdrew more commitments for real estate funds than they made, according to weekly financial newsletter Real Estate Alert.

Private equity firms are likely to take a long hard look at the assets.

In an annual review Real Estate Alert published March 18, 466 active funds seeking commitments from U.S. investors have targeted $312 billion in equity for commercial real estate investments with a projected return after fees of at least 10 percent. So far they have raised slightly more than $200 billion of that, according to Real Estate Alert.

Sterrett said he believes the market will gradually come back.

“Whether this is the event that would cause some of that to be invested, my gut answer is ‘no’ — only because I think the bankruptcy proceeding will take some time and I’m not sure in any event there will be a single thing that would cause the money to be shaken loose,” Sterrett said.

(Reporting by Ilaina Jonas; editing by Richard Chang)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

UPDATE 1-Auto supplier Noble seeks bankruptcy protection

April 17, 2009 By Leave a Comment

Cites frozen credit, volume declines

* European, Asian, Mexican units excluded

DETROIT, April 15 (Reuters) – Auto parts supplier Noble International Ltd (NOBL.O) filed for Chapter 11 bankruptcy protection for its North American operations on Wednesday, citing a steep decline in auto production and tight credit.

Noble is the latest U.S. auto parts supplier to seek bankruptcy protection as a result of the decline in U.S. vehicle sales to their lowest level in nearly 27 years and the increasing financial strain on Detroit’s automakers.

The Troy, Michigan-based company, which makes laser-welded blanks and roll-formed products and other steel components, has supplied parts to General Motors Corp (GM.N), Ford Motor Co (F.N) and Chrysler LLC.

“The frozen credit markets and diminished volumes have limited our ability to effectuate a solution outside of bankruptcy,” Noble Chief Executive Andrew Tavi said in a statement.

The company said three of its customers recently moved to buy laser-welded products from other suppliers.

Noble said in March it was seeking short-term funding from Detroit’s three automakers, and that without help it was unlikely to maintain operations to March 23.

The auto supplier defaulted on a debt payment on March 1.

Noble’s European, Asian and Mexican affiliates are excluded from the bankruptcy.

Noble provides steel structural components to the auto industry, including parts that increase vehicle body strength and reduce weight. Customers also include Daimler AG (DAIGn.DE), BMW (BMWG.DE), Fiat SpA (FIA.MI) and Honda Motor Co Ltd (7267.T).

The U.S. auto industry is suffering from its worst downturn in decades, with industrywide sales about 40 percent in the first three months of 2009. (Reporting by Soyoung Kim; Editing by Gary Hill)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Auto supplier Noble seeks bankruptcy protection

April 17, 2009 By Leave a Comment

DETROIT (Reuters) – Auto parts supplier Noble International Ltd (NOBL.O) filed for Chapter 11 bankruptcy protection for its North American operations on Wednesday, citing a steep decline in auto production and tight credit.

Noble is the latest U.S. auto parts supplier to seek bankruptcy protection as a result of the decline in U.S. vehicle sales to their lowest level in nearly 27 years and the increasing financial strain on Detroit’s automakers.

The Troy, Michigan-based company, which makes laser-welded blanks and roll-formed products and other steel components, has supplied parts to General Motors Corp (GM.N), Ford Motor Co (F.N) and Chrysler LLC.

“The frozen credit markets and diminished volumes have limited our ability to effectuate a solution outside of bankruptcy,” Noble Chief Executive Andrew Tavi said in a statement.

The company said three of its customers recently moved to buy laser-welded products from other suppliers.

Noble said in March it was seeking short-term funding from Detroit’s three automakers, and that without help it was unlikely to maintain operations to March 23.

The auto supplier defaulted on a debt payment on March 1.

Noble’s European, Asian and Mexican affiliates are excluded from the bankruptcy.

Noble provides steel structural components to the auto industry, including parts that increase vehicle body strength and reduce weight. Customers also include Daimler AG (DAIGn.DE), BMW (BMWG.DE), Fiat SpA (FIA.MI) and Honda Motor Co Ltd (7267.T).

The U.S. auto industry is suffering from its worst downturn in decades, with industrywide sales about 40 percent in the first three months of 2009.

(Reporting by Soyoung Kim; Editing by Gary Hill)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

UPDATE 1-S and P cuts GM’s senior secured revolving credit

April 11, 2009 By Leave a Comment

NEW YORK, April 10 (Reuters) – Standard and Poor’s cut its rating on General Motors Corp’s (GM.N) $4.5 billion senior secured revolving credit facility deeper into junk, due to a shrinking pool of assets available to repay lenders and weak demand for its light vehicles.

“Basically GM is shrinking in terms of the assets they secure,” Standard and Poor’s recovery analyst Greg Maddock said. “The debt stays the same.”

S and P lowered the rating on the revolver to CCC-minus from CCC and revised its recovery rating to 2 from 1, reflecting S and P’s view that lenders should expect less recovery in the event of a payment default.

Should the automaker default or file for Chapter 11 bankruptcy protection, holders of its senior secured revolver should expect a 70 percent to 90 percent recovery of what they are owed instead of the previous expectation of 90 percent to 100 percent, S and P said.

“The lowering of the rating on the revolving credit facility reflects our view of persistently weaker demand for light vehicles in North America, as well as declining pools of assets securing the revolving credit facility,” Maddock said in a statement.

GM is operating under emergency U.S. government loans and is seeking additional support. It has been told by the Obama administration’s task force overseeing its bailout that it must cut deeper and faster to continue to receive aid.

The automaker must reach agreements to slash some $28 billion of unsecured debt and restructure funding of a trust for union retirees by June 1. The alternative raised by the task force could be a bankruptcy filing.

News reports have said GM may only offer bondholders a small equity stake in the company, with no cash or new debt. GM has declined to comment on the status of discussions with bondholders.

Maddock said GM, unlike Chrysler Holding LLC [CCMLPD.UL], likely would survive bankruptcy.

S and P kept the GM’s corporate credit rating at CC, reflecting S and P’s view of the likelihood that GM will default — through either a bankruptcy or a distressed debt exchange.

The ratings agency also left its rating on GM’s $1.5 billion senior secured term loan unchanged, at CCC, two notches above the corporate credit rating. It also left the recovery rating on that debt at 1, indicating that S and P believes those lenders can expect a 90 percent to 100 percent recovery in the event of a payment default. The rating on GM’s unsecured debt remains at C, below the corporate credit rating.

“The corporate credit rating reflects our view of the prospects for a distressed debt exchange (which we would consider tantamount to a default under our criteria) or a bankruptcy filing,” S and P said. The recovery rating on those bonds remains at 6, indicating S and P believes lenders can expect from no recovery to a 10 percent recovery in the event of a payment default. (Reporting by Ilaina Jonas; Editing by Tim Dobbyn)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

S and P cuts GM’s senior secured revolving credit

April 11, 2009 By Leave a Comment

NEW YORK (Reuters) – Standard and Poor’s cut its rating on General Motors Corp’s (GM.N) $4.5 billion senior secured revolving credit facility deeper into junk, due to a shrinking pool of assets available to repay lenders and weak demand for its light vehicles.

“Basically GM is shrinking in terms of the assets they secure,” Standard and Poor’s recovery analyst Greg Maddock said. “The debt stays the same.”

S and P lowered the rating on the revolver to CCC-minus from CCC and revised its recovery rating to 2 from 1, reflecting S and P’s view that lenders should expect less recovery in the event of a payment default.

Should the automaker default or file for Chapter 11 bankruptcy protection, holders of its senior secured revolver should expect a 70 percent to 90 percent recovery of what they are owed instead of the previous expectation of 90 percent to 100 percent, S and P said.

“The lowering of the rating on the revolving credit facility reflects our view of persistently weaker demand for light vehicles in North America, as well as declining pools of assets securing the revolving credit facility,” Maddock said in a statement.

GM is operating under emergency U.S. government loans and is seeking additional support. It has been told by the Obama administration’s task force overseeing its bailout that it must cut deeper and faster to continue to receive aid.

The automaker must reach agreements to slash some $28 billion of unsecured debt and restructure funding of a trust for union retirees by June 1. The alternative raised by the task force could be a bankruptcy filing.

News reports have said GM may only offer bondholders a small equity stake in the company, with no cash or new debt. GM has declined to comment on the status of discussions with bondholders.

Maddock said GM, unlike Chrysler Holding LLC CCMLPD.UL, likely would survive bankruptcy.

S and P kept the GM’s corporate credit rating at CC, reflecting S and P’s view of the likelihood that GM will default — through either a bankruptcy or a distressed debt exchange.

The ratings agency also left its rating on GM’s $1.5 billion senior secured term loan unchanged, at CCC, two notches above the corporate credit rating. It also left the recovery rating on that debt at 1, indicating that S and P believes those lenders can expect a 90 percent to 100 percent recovery in the event of a payment default. The rating on GM’s unsecured debt remains at C, below the corporate credit rating.

“The corporate credit rating reflects our view of the prospects for a distressed debt exchange (which we would consider tantamount to a default under our criteria) or a bankruptcy filing,” S and P said. The recovery rating on those bonds remains at 6, indicating S and P believes lenders can expect from no recovery to a 10 percent recovery in the event of a payment default.

(Reporting by Ilaina Jonas; Editing by Tim Dobbyn)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , , ,

WRAPUP-S and P cuts debt ratings on GM, Chrysler

April 11, 2009 By Leave a Comment

By Ransdell Pierson and Ilaina Jonas

NEW YORK, April 10 (Reuters) – Standard and Poor’s on Friday cut certain debt ratings of General Motors Corp (GM.N) and Chrysler Holding LLC [CCMLPD.UL], citing lower likelihood of recovery by their debtors in the event either carmaker defaults on the loans or files for bankruptcy.

The rating downgrades put extra pressure on the two iconic U.S. carmakers, whose already declining fortunes have worsened during the ongoing global economic downturn.

GM, unlike Chrysler, likely would survive in the event of bankruptcy, Standard and Poor’s recovery analyst Greg Maddock said in an interview.

“If Chrysler goes into bankruptcy, I would expect it to go into liquidation — that its assets would be sold in whole or in part,” Maddock said. “Instead of being reorganized, there would be no carmaker after bankruptcy.”

Maddock cut S and P’s rating on General Motors’ $4.5 billion senior secured revolving credit facility deeper into junk, due to a shrinking pool of assets available to repay lenders and weak demand for its light vehicles.

“Basically GM is shrinking in terms of the assets they secure,” Maddock said. “The debt stays the same.”

GM and Chrysler are operating under emergency U.S. government loans. GM has been told by the Obama administration’s task force overseeing its bailout that it must cut costs and reduce its debts in order to continue to receive aid.

Chrysler, which has been operating under $4 billion of loans from the task force, has been offered up to $6 billion more if it completes an alliance with Italy’s Fiat SpA (FIA.MI).

GM’S SLIPPING ASSETS, WEAK CAR SALES

S and P lowered the rating on GM’s revolver to CCC-minus from CCC and revised its recovery rating to 2 from 1, reflecting S and P’s view that lenders should expect less recovery in the event of a payment default.

Should GM default or file for Chapter 11 bankruptcy protection, holders of its senior secured revolver should expect a 70 percent to 90 percent recovery of what they are owed instead of the previous expectation of 90 percent to 100 percent, S and P said.

“The lowering of the rating on the revolving credit facility reflects our view of persistently weaker demand for light vehicles in North America, as well as declining pools of assets securing the revolving credit facility,” Maddock said in a statement.

The federal task force has required GM, the biggest U.S. automaker, to reach agreements to slash some $28 billion of unsecured debt and restructure funding of a trust for union retirees by June 1. The alternative raised by the task force could be a bankruptcy filing.

News reports have said GM may only offer bondholders a small equity stake in the company, with no cash or new debt.

GM has declined to comment on the status of discussions with bondholders.

S and P kept GM’s corporate credit rating at CC, reflecting its view of the likelihood that GM will default — through either a bankruptcy or a distressed debt exchange.

CHRYSLER DEBT ALSO DEEMED RISKIER

S and P also offered a more wary view on Chrysler, cutting debt ratings on its CBS.UL loans due in 2013 and 2014 and citing a lower potential recovery by debtors in the event of payment defaults by the carmaker.

Maddock lowered by two notches S and P’s issue-level ratings on Chrysler’s senior secured first-lien term loan due 2013 to CC from CCC. S and P said its downgrade indicates lenders can expect an average recovery of 30 percent to 50 percent in the event of a payment default.

The ratings agency said its corporate credit rating on Chrysler was left intact, at CC, reflecting no change in its view of the likelihood of default by Chrysler from either a bankruptcy or a distressed debt exchange.

S and P lowered its issue rating on the carmaker’s senior secured second-lien term loan due 2014 by one notch to C from CC, suggesting lenders can expect a negligible to a 10 percent recovery if a default occurs.

“The lowering of our issue ratings reflects lower recovery estimates, given our current view that Chrysler would be unlikely to emerge from bankruptcy as one reorganized entity,” Maddock said in his report. (Reporting by Ransdell Pierson and Ilaina Jonas; Editing by John Picinich and Jan Paschal)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

UPDATE 1-Nexpak files for Chapter 11 bankruptcy protection

April 11, 2009 By Leave a Comment

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UPDATE 1-Nexpak files for Chapter 11 bankruptcy protection
Fri Apr 10, 2009 5:38pm EDT

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NEW YORK, April 10 (Reuters) – Nexpak, which manufactures and supplies packaging for high-definition discs such as Blu-Ray and DVDs, on Friday filed for Chapter 11 bankruptcy protection.

The Duluth, Georgia-based company listed assets between $1 million and $10 million, and debts in the range of $100 million to $500 million, according to court papers filed in Delaware Bankruptcy Court.

The company previously filed for bankruptcy in 2004, according to court documents. (Reporting by Ilaina Jonas; Editing by Jan Paschal)

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Obama says he has no interest in running General Motors

April 1, 2009 By Leave a Comment

Washington, Mar. 31 (ANI): US President Barack Obama has clarified that his administration has “no intention” of running General Motors, even as the White House forced the automaker’s CEO to resign, and demanded it to come out with a “better business plan” so that the government can think of rescuing the company.

“Let me be clear. The United States Government has no interest in running GM. We have no intention of running GM. These companies and this industry must ultimately stand on their own, not as wards of the state,” Fox News quoted Obama, as saying.

Obama spoke after the White House forced GM CEO and Chairman Rick Wagoner to step down.

The move was not a “condemnation” of the chairman rather “recognition that it will take a new vision and new direction to create the GM of the future,” he said.

Obama said he was seeking “painful concessions” from GM and Chrysler, but neither company has submitted an acceptable restructuring plan, so he’s giving them additional time to come back with new proposals.

“We cannot, and must not, and we will not let our auto industry simply vanish. This industry is like no other, it’s an emblem of the American spirit. And we cannot continue to excuse poor decisions. And we cannot make the survival of our auto industry dependent on an unending flow of taxpayer dollars,” Obama said at White House.

Obama, however, warned that these plans wouldn’t prevent layoffs.

“There are jobs that won’t be saved, there are plants that may not reopen,” he said.

The companies may consider using US bankruptcy code for restructuring more efficiently, and Obama administration has vowed to support any such steps.

However, no automaker would be required to immediately repay government loan money they previously received, since that would force both companies into Chapter 11 bankruptcy.

In progress reports filed with the government in February, GM asked for 16.6 billion dollars more, while and Chrysler wanted 5 billion dollars more. (ANI)

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