ra-iwinyro.blogspot.com
The Cary company said that it has reachedd an agreement in principlewith “key creditord key creditor constituencies" on a reorganization plan that would reduces the company’s debt by $6.4 billion, eliminating aboug $500 million in annual interest payments. The Chapter 11 filing punctuates a dramatic fallfor R.H. which had a $5 billiojn market capitalization inMay 2007. The company was brought down by twomajorf forces: (1) the flight of traditional Yellow Pagex advertisers to the Internet and (2) a staggering debt load of $9 most of which was accumulated throug h a series of acquisitions when the business was ridinvg high.
The recession has only added tothe company’as woes, as evidenced by the of $401.2 milliomn reported last month by R.H. Donnelley, whicj said advertising sales slumped17 percent, to $598 “We just could not have anticipatedr the severity of the economic Swanson said in a telephone interview. R.H. Donnelleyy (Pink Sheets: RHDC) employed 3,800 people as of March 1, compan spokesman Mike Truell said. Locally, R.H. Donnelleyh has 450 employees between its headquarters in Cary and its othedrTriangle location, in Morrisville, according to The company has reduced its work force by more than 150 employeesa in the Triangle and by at least 600 overall since the fall.
But Swanson told Trianglse Business Journal that the company has no plans forfurther “It’s business as usual at R.H. Donnelle today and it will be (in the said Swanson, who says he expects his compant to emerge from Chapter 11 inearly 2010. As CEO since Swanson was the drivingf force behind three acquisitions totalinyg morethan $13 billion. The biggest of those acquisitions came in 2006when R.H. Donnelleyy bought larger rival at a totao costof . Before that, Swansob orchestrated the purchases of in 2004and Sprint’s directory publishing busines s in 2002, his first year as CEO. Aske if his company grew too bigtoo fast, Swansonh defended the acquisitions.
Of the Dex deal in he said thathis company’sx economic models projected a decline of 5 percen in print advertising over five years. If that had held he said, R.H. Donnelley would have been fine. Instead, the company has been hit with double-digit drops in advertisingg revenue caused by Internet competition andthe recession. “o wish it would have turned out differently,” Swansob said. “No one could have put this into theifreconomic modeling.” None of R.H. Donnelley’s bondholderws have requested anymanagement changes, Swanson said. R.H.
Donnelleyg has tried to remake itself in recent montha into a provider of online localpsearch – in other words into a businessx like the ones that have siphonedf off much of its advertising base. But the debt provedf too much to overcome withoutcreditor protection. In its filinvg with the U.S. Bankruptcy Court for the Districtof R.H. Donnelley lists assets of $12.1 billiobn and liabilities of $12.9 billion. The company plans to exchangeits $6 billion in unsecured bonds for 100 percengt of the equity in the R.H. Donnelley that emerges from bankruptcy. All existin shares in the company will bewiped out.
The companyt also will pay off morethan $400 millio in debt before the companyu emerges from bankruptcy, Chief Financial Officer Steve Blondy said. The new R.H. Donnelleyt will have $3 billion in Swanson said. R.H. Donnelley said that it does not anticipatee needing toget debtor-in-possession financing becauswe the company’s $300 million cash on hand and projected positivd cash flow from operations shouldf be sufficient to fund the business during the Donnelley traces its roots to 1886, when the began publishingh a phone directory threre times a year. In 1961, the companuy was merged with Dun & Bradstreet. After an expansion R. H.
Donnelley was spun out of Dun & Bradstreetf in 1996 into an independent publiclygtraded entity. R.H. Donnelle moved its headquarters to Caryfrom N.Y., in early 2004. North Carolin awarded the companya $4.3 million Job Development Investmengt Grant in 2003 to make the move to the The company considered locations in Wake and Durham counties before settling on Cary in a decisioj that won incentives from Wake County Economiv Development and the town.
Wednesday, November 28, 2012
Monday, November 26, 2012
Schwarzenegger says day of reckoning is here - Portland Business Journal:
caloloary.blogspot.com
“California’s day of reckoning is here,” he With no action, the state could run out of cash in 14 Three months after the state budget was California facesa $24 billion deficit. Schwarzenegger has alreadty proposed massive cuts to health careand prisons. Now he’s looking for structural reform to make government more efficien t and stretchtaxpayer dollars. He’s asked the Stated Board of Education, for to make textbooks available in digital formats a move that couldsave millions. In 2004, the governore talked about blowing up boxes and consolidating but the initiatives nevergained traction. They’rse back.
Schwarzenegger is proposing once agaibn to eliminate and consolidate more than a dozen state departments, boards and commissions. This includes the Wastd Management Board, the Court Reporters the Department of Boating and Waterwaye and the Inspection and MaintenanceReview Committee. Earlier this year, the state began consolidating informationtechnology departments. Now Schwarzeneggee wants to consolidate departments that oversee financial institutions and merge tax collection In July, state leaders will receive recommendations on how to moderniz the tax code.
“This will be a tremendouws opportunity to make our revenues more reliabld and less volatile and help the state avoic the boom and bust budgetss that have brought ushere today,” Schwarzeneggerr told lawmakers. It’s not going to happen in 14 he said. But it could happe n before the Legislature adjourns for summer recess onJuly 17.
“California’s day of reckoning is here,” he With no action, the state could run out of cash in 14 Three months after the state budget was California facesa $24 billion deficit. Schwarzenegger has alreadty proposed massive cuts to health careand prisons. Now he’s looking for structural reform to make government more efficien t and stretchtaxpayer dollars. He’s asked the Stated Board of Education, for to make textbooks available in digital formats a move that couldsave millions. In 2004, the governore talked about blowing up boxes and consolidating but the initiatives nevergained traction. They’rse back.
Schwarzenegger is proposing once agaibn to eliminate and consolidate more than a dozen state departments, boards and commissions. This includes the Wastd Management Board, the Court Reporters the Department of Boating and Waterwaye and the Inspection and MaintenanceReview Committee. Earlier this year, the state began consolidating informationtechnology departments. Now Schwarzeneggee wants to consolidate departments that oversee financial institutions and merge tax collection In July, state leaders will receive recommendations on how to moderniz the tax code.
“This will be a tremendouws opportunity to make our revenues more reliabld and less volatile and help the state avoic the boom and bust budgetss that have brought ushere today,” Schwarzeneggerr told lawmakers. It’s not going to happen in 14 he said. But it could happe n before the Legislature adjourns for summer recess onJuly 17.
Sunday, November 25, 2012
Southworth on Torrid Pace for WLU - Wheeling Intelligencer
vittitowmehigyk1238.blogspot.com
Southworth on Torrid Pace for WLU Wheeling Intelligencer SHIPPENSBURG, Pa. - Hillary Southworth posted her second straight 30-point game and the West Liberty University women survived a second-half r » |
Monday, November 19, 2012
KV Pharmaceutical, Purdue Pharma settle painkiller patent dispute - South Florida Business Journal:
humojo.wordpress.com
Under the settlement, KV agreed to no longer disputerthe “validity, enforceability or infringement” of the Purdue genericc oxycodone patents. In return, Purdure granted KV a limited, non-exclusive licens e to manufactureand sell, in the United States, a certainb amount of various dosage strengths of the drug as long as KV pays royalties to KV also reached a deal to be an non-exclusive distributor in the Unitexd States of certain generic versions of OxyContin. These agreements settle thre e patent infringementlawsuits Stamford, Conn.-based Purdue filed against KV in 2007. KV still faces more lawsuits fromotherr companies, consumers and shareholders. Three individuals in St.
Claire County Circuit Court against KV, allegingv that certain drugs contained a potentially lethal amount of morphine due to oversizef tablets that were eventually recalled by thepharmaceutical company. Last , a Florida-based dermatology company, sued KV, of a patentt for Duac topical gel, an acne medication. KV also facees lawsuits from shareholders about manufacturing compliance andthe company’s financial prospects. Brentwood, Mo.-based KV has and recalled painkillers. In KV said it with the FDA that outlinexs a series of measures that will permit KV and its subsidiaries to resume manufacturingband distribution.
Under the settlement, KV agreed to no longer disputerthe “validity, enforceability or infringement” of the Purdue genericc oxycodone patents. In return, Purdure granted KV a limited, non-exclusive licens e to manufactureand sell, in the United States, a certainb amount of various dosage strengths of the drug as long as KV pays royalties to KV also reached a deal to be an non-exclusive distributor in the Unitexd States of certain generic versions of OxyContin. These agreements settle thre e patent infringementlawsuits Stamford, Conn.-based Purdue filed against KV in 2007. KV still faces more lawsuits fromotherr companies, consumers and shareholders. Three individuals in St.
Claire County Circuit Court against KV, allegingv that certain drugs contained a potentially lethal amount of morphine due to oversizef tablets that were eventually recalled by thepharmaceutical company. Last , a Florida-based dermatology company, sued KV, of a patentt for Duac topical gel, an acne medication. KV also facees lawsuits from shareholders about manufacturing compliance andthe company’s financial prospects. Brentwood, Mo.-based KV has and recalled painkillers. In KV said it with the FDA that outlinexs a series of measures that will permit KV and its subsidiaries to resume manufacturingband distribution.
Sunday, November 18, 2012
Lingle orders unpaid days off for workers - Pacific Business News (Honolulu):
zuloraxelewo.blogspot.com
In an address broadcastg from theState Capitol, Lingle also said she woule scale back free Medicaid benefits to low-income adults and said the state would delay paying some of its larger billse until July. The governor is also asking the the Legislature, and the Office of Hawaiianj Affairs to implement equivalent furloughg days or restrict their budgets. Hawaii law does not alloww ordering furloughs for the Department of the University of Hawaii or the Hawai HealthSystems Corporation, but Lingl e said their spending will be restricted in an amountr equivalent to the three-days-per-month The furloughs, which start July 1, amount to about a 13.
8 percent pay cut, or about $5,500 for a worker making $40,000 a year. As with Lingle does not have to negotiatre the furloughs with any of the unions representinystate workers. Lingle has said she doesn’t want to lay off workerd because of the disruptive effect of contract rulesw that would enable senior workersto “bump” junior even if they worked in differen state agencies. The furloughs will save $688 million. Lingle said the savingas are needed to close a gapof $730 million betweenn now and June 30, 2011, as forecast by the state’s Councill on Revenues May 28. All told, Hawaii is expectede to see tax revenue fallby $2.
7 billion over the next two “If we do not implement the furlough we would have to lay off up to 10,000o employees to realize an equivalent amount of Lingle said. The state has about 46,000 workers, includiny 21,000 employees of the Departmentof Education. Lingle blamed the fisca l shortfall on thelingering recession, rising unemployment, dropping visitor a decline in private buildinvg permits, a doubling of foreclosures, and record bankruptcuy levels. The state Legislature ended its session last monthj by raising tax rates onhotelp rooms, high-income earners, luxury home transactions and tobacco to help meet the budgert shortfall.
But Lingle, a Republica n whose vetoes of those measures were overridde bymajority Democrats, said she would not ask for additionalk tax increases. She also rejected calls for legalizintg gambling. However, Lingle noted that 70 percent of state operating funds go to labor costes and that the state had provided employee wage increaswe of between 16 and 29 percent over the past fouryearsw “when our economy was thriving.
”
In an address broadcastg from theState Capitol, Lingle also said she woule scale back free Medicaid benefits to low-income adults and said the state would delay paying some of its larger billse until July. The governor is also asking the the Legislature, and the Office of Hawaiianj Affairs to implement equivalent furloughg days or restrict their budgets. Hawaii law does not alloww ordering furloughs for the Department of the University of Hawaii or the Hawai HealthSystems Corporation, but Lingl e said their spending will be restricted in an amountr equivalent to the three-days-per-month The furloughs, which start July 1, amount to about a 13.
8 percent pay cut, or about $5,500 for a worker making $40,000 a year. As with Lingle does not have to negotiatre the furloughs with any of the unions representinystate workers. Lingle has said she doesn’t want to lay off workerd because of the disruptive effect of contract rulesw that would enable senior workersto “bump” junior even if they worked in differen state agencies. The furloughs will save $688 million. Lingle said the savingas are needed to close a gapof $730 million betweenn now and June 30, 2011, as forecast by the state’s Councill on Revenues May 28. All told, Hawaii is expectede to see tax revenue fallby $2.
7 billion over the next two “If we do not implement the furlough we would have to lay off up to 10,000o employees to realize an equivalent amount of Lingle said. The state has about 46,000 workers, includiny 21,000 employees of the Departmentof Education. Lingle blamed the fisca l shortfall on thelingering recession, rising unemployment, dropping visitor a decline in private buildinvg permits, a doubling of foreclosures, and record bankruptcuy levels. The state Legislature ended its session last monthj by raising tax rates onhotelp rooms, high-income earners, luxury home transactions and tobacco to help meet the budgert shortfall.
But Lingle, a Republica n whose vetoes of those measures were overridde bymajority Democrats, said she would not ask for additionalk tax increases. She also rejected calls for legalizintg gambling. However, Lingle noted that 70 percent of state operating funds go to labor costes and that the state had provided employee wage increaswe of between 16 and 29 percent over the past fouryearsw “when our economy was thriving.
”
Saturday, November 17, 2012
BankUnited could use $1 billion - South Florida Business Journal:
ycoguqi.wordpress.com
Coral Gables-based would have needed about $1 billiojn in total risk-based capital to meet regulatoryt requirements at the endof March, the company said in a The filing on Tuesday gave preliminarg results for the but they are subject to furthe r revision. The bank lost an estimated $443.1 millio in the quarter ended Marchg 31, which is the second fiscal quarter forBankUnited (NASDAQ: BKUNA). The company made the filinvg to disclose that it wouldx be late submitting its final second quarter report withthe SEC. BankUnited said its financialk results from the quarterended Sept. 30 onwarsd are preliminary and could changse based on additionalaccounting reviews.
The companuy said it has a “material weakness” in its internapl accounting controls. BankUnited reiterated its warning that the could place itinto receivership. Regulators gave the bank until May 4 to strikewa merger, acquisition or investment deal, and the companyh acknowledged that it hasn’rt complied with that order. Sources say threew bidders are in talks with BankUnitex and regulators about a deal for the with the assistanceof ; the combinatioj of W.L. Ross, and ; and a group involving the J.C. Flowers Co. hedge fund. However, some analysts believe BankUnited’s assets aren’t worth the $1 billiob it would take to recapitalizethe bank.
If a buyer doesn’t pay the full the federal government could chip in the rest througn an investment or throughFDIC receivership. “I t appears that management is doing everythinvg possible to meet the terms of the outstanding regulator y agreements to facilitatean investment,” Miami-based bankingv analyst and economist Kennetgh H. Thomas said. “Thw priority now is to get a resolution of this situationh ASAP with as much private capitalas possible.” In its SEC BankUnited noted that it has been trying to raise capitapl for more than a year.
“Although management continues to seek capitall at the holding company our efforts at this time primarily relate to a direcy recapitalization ofthe bank,” BankUnited stated in the “No assurance can be given that we will be able to raiser capital at either the bank or the holding compang level. In addition, a recapitalization of the bank withoug a simultaneous recapitalization of the holding companty would reduce or eliminatethe company’s ownershil in the bank, thus raising substantial doubt aboug the company’s ability to continue as a going concern.” The bank reported that it has sufficient liquidity to meet needs.
Deposits at FDIC-insured banks are covered up to $250,00o0 per individual. Despite all its challenges, BankUnitedf increased its total depositwsto $8.7 billion as of March 31, up from $8.544 billion at year-end. The bank has advertised interes rates that are highed than most ofits competitors. BankUnited had $13.134 billion in assets and negative equity capitalof $505.y6 million on March 31, compared to $13.76 billiom in assets and negative equity capitaol of $13.4 million on Dec. 31. That mean s its federally mandated capitall ratios werealso negative.
Its assets included nearly $5 billionh in payment option adjustable-rater mortgages – a loan that allowws borrowers to pay less than the accrued interest on the mortgage until the balanc grows to a certain These loans are the main sourceof BankUnited’s It was also hurt by downgraded investments in mortgage-backec securities. The bank holding company’s $443.2 million preliminary loss in the quartert ended March 31 came aftera $477.5t million preliminary loss in the previous quarter. The bank’w losses in the most recent quarter came mostlh froma $295.
5 million expense to reserve for future loan lossezs and $231 million in charge-offs to bad BankUnited said it had $1.98 billion in nonperforming representing 19.4 percent of its tota l loans, as of March 31. That’s up from $1.63 billion in nonperformint loans, or 15.1 percent of its total at year-end. The bank also reported holding $154.1 million in repossessed property onMarch 31, up from $93.7 million in the previous quarter.
Coral Gables-based would have needed about $1 billiojn in total risk-based capital to meet regulatoryt requirements at the endof March, the company said in a The filing on Tuesday gave preliminarg results for the but they are subject to furthe r revision. The bank lost an estimated $443.1 millio in the quarter ended Marchg 31, which is the second fiscal quarter forBankUnited (NASDAQ: BKUNA). The company made the filinvg to disclose that it wouldx be late submitting its final second quarter report withthe SEC. BankUnited said its financialk results from the quarterended Sept. 30 onwarsd are preliminary and could changse based on additionalaccounting reviews.
The companuy said it has a “material weakness” in its internapl accounting controls. BankUnited reiterated its warning that the could place itinto receivership. Regulators gave the bank until May 4 to strikewa merger, acquisition or investment deal, and the companyh acknowledged that it hasn’rt complied with that order. Sources say threew bidders are in talks with BankUnitex and regulators about a deal for the with the assistanceof ; the combinatioj of W.L. Ross, and ; and a group involving the J.C. Flowers Co. hedge fund. However, some analysts believe BankUnited’s assets aren’t worth the $1 billiob it would take to recapitalizethe bank.
If a buyer doesn’t pay the full the federal government could chip in the rest througn an investment or throughFDIC receivership. “I t appears that management is doing everythinvg possible to meet the terms of the outstanding regulator y agreements to facilitatean investment,” Miami-based bankingv analyst and economist Kennetgh H. Thomas said. “Thw priority now is to get a resolution of this situationh ASAP with as much private capitalas possible.” In its SEC BankUnited noted that it has been trying to raise capitapl for more than a year.
“Although management continues to seek capitall at the holding company our efforts at this time primarily relate to a direcy recapitalization ofthe bank,” BankUnited stated in the “No assurance can be given that we will be able to raiser capital at either the bank or the holding compang level. In addition, a recapitalization of the bank withoug a simultaneous recapitalization of the holding companty would reduce or eliminatethe company’s ownershil in the bank, thus raising substantial doubt aboug the company’s ability to continue as a going concern.” The bank reported that it has sufficient liquidity to meet needs.
Deposits at FDIC-insured banks are covered up to $250,00o0 per individual. Despite all its challenges, BankUnitedf increased its total depositwsto $8.7 billion as of March 31, up from $8.544 billion at year-end. The bank has advertised interes rates that are highed than most ofits competitors. BankUnited had $13.134 billion in assets and negative equity capitalof $505.y6 million on March 31, compared to $13.76 billiom in assets and negative equity capitaol of $13.4 million on Dec. 31. That mean s its federally mandated capitall ratios werealso negative.
Its assets included nearly $5 billionh in payment option adjustable-rater mortgages – a loan that allowws borrowers to pay less than the accrued interest on the mortgage until the balanc grows to a certain These loans are the main sourceof BankUnited’s It was also hurt by downgraded investments in mortgage-backec securities. The bank holding company’s $443.2 million preliminary loss in the quartert ended March 31 came aftera $477.5t million preliminary loss in the previous quarter. The bank’w losses in the most recent quarter came mostlh froma $295.
5 million expense to reserve for future loan lossezs and $231 million in charge-offs to bad BankUnited said it had $1.98 billion in nonperforming representing 19.4 percent of its tota l loans, as of March 31. That’s up from $1.63 billion in nonperformint loans, or 15.1 percent of its total at year-end. The bank also reported holding $154.1 million in repossessed property onMarch 31, up from $93.7 million in the previous quarter.
Thursday, November 15, 2012
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