Archives October 2016

Tuesday, September 16, 2008

With Bay Street in turmoil in sympathy with Wall Street, Canadian party leaders traded slurs over the slowing economy and measures to secure it against the slump happening south of the border.

“We have the worst economy in the G8, our labour productivity has fallen for nine months straight and over the summer in July we saw the largest single month of jobs losses in 17 years,” Stéphane Dion said as the Liberal leader worked through St. John’s, N.L. Dion is hoping to sweep Newfoundland and Labrador’s 7 seats, capitalizing on N.L. Premier Danny Williams’s feud with the federal Conservatives over broken promises made by Stephen Harper in the Atlantic Accord.

Campaigning in Nova Scotia, New Democratic Party‘s Jack Layton lashed the Conservatives for failing to protect consumers. “Of course with Mr. Harper, we don’t see any willingness to really address the need to stand on behalf of Canadian consumers. He won’t even support the notion of the monitoring of gas prices, let alone the kinds of initiatives that really should be taken here in Canada to make sure that the consumers of investment products are being protected.”

Harper was working the Liberal-held riding of Ottawa-Vanier, where he announced a program to allow entrepreneur’s to extend their maternal leave up to 6 months using the Employment Insurance program with an estimated cost of $147 million. He said the country wasn’t ready for “wild experiments”, but should adopt a cautious approach to the economy in uncertain times.

“Canada has been brought to the brink of a deficit for the first time in over a decade,” Elizabeth May of the Greens said in a press release on their website on Monday. “Stephen Harper’s leadership deficit is driving us into economic deficit and his failure to manage the economy in uncertain times must not be allowed to continue.”

The parties also threw out economic planks for their platforms: to support the fishermen of N.L as well as the environment, Dion announced a $250 million dollar fund to help fishermen upgrade their equipment with “green” technology as well as $70 million to retire licenses. The Greens suggested their financial plan, which includes embracing a low-carbon economy, would improve Canada’s economic outlook. The NDP promised $1 billion over 5 years for more nurses and doctors.

The backdrop to all these economic statements was a 515 point drop on the TSX as markets reacted to the bankruptcy filing of 158 year old financial firm Lehman Brothers, as well as a surprising drop in the Canadian dollar relative to the US dollar which itself lost ground against the Euro and other world currencies. Even as the dollar dropped, so did the price of oil futures and gold, partially explaining the Canadian dollar’s weakness.

Tuesday, February 26, 2008

Neverland Valley Ranch, owned by Michael Jackson, is to be sold at auction on March 19, 2008, unless Jackson pays over US$24 million.

Financial Title Company, the trustee of his Santa Barbara County, California, home and amusement park, has foreclosed on the property. They notified Jackson of the foreclosure and sale on Monday. Jackson had only just recently paid an overdue property tax bill of $600,000.

The court filing, addressed to Jackson, says, “You are in default of a deed of trust … Unless you take action to protect your property it may be sold at a public sale.” Fox News published the filing.

The foreclosure includes the ranch and all possessions on the property, inside or out.

The foreclosure auction will take place in front of the Santa Barbara County Courthouse in Santa Barbara. Jackson has until then to pay $24,525,906.61 he owes the title company.

In 2006, Jackson refinanced previous loans that had been bought up by Fortress Investment Group. The $300-million loan was secured with the aid of Sony Music Entertainment. However, the Neverland property was not part of that deal.

Jackson has not lived at Neverland since June 30, 2005, when he moved to Bahrain after a rape charge and subsequent acquittal.

Monday, June 1, 2009

United States automobile manufacturing firm General Motors filed for bankruptcy and Chapter 11 protection from its creditors at 12:00 UTC Monday, in a Manhattan, New York federal bankruptcy court. This was the largest bankruptcy filing for a U.S. manufacturing company, and with declared assets of $82.29 billion and a debt of $172.81 billion, and the fourth largest bankruptcy filing in recent U.S. history — after the bankruptcies of Lehman Brothers ($691.06 billion), Washington Mutual ($327.91 billion), and WorldCom ($103.91 billion).

The filing, expected to be the first of many, was for a New York GM affiliate, Chevrolet-Saturn of Harlem Incorporated. Numbered 09-50026, it named GM as a debtor in possession, and was filed before judge Robert Gerber.

GM is to be represented throughout the filing process by Weil Gotshal & Manges, a New York law firm specializing in bankruptcy.

The chief restructuring officer, named in the filing, is to be Al Koch, a managing director at AlixPartners LLP in New York, who will report directly to Fritz Henderson, the Chief Executive Officer of General Motors.

In its bankruptcy petition, GM listed its primary creditors as:

The amount owed to UAW excludes “approximately $9.4 billion corresponding to the GM Internal VEBA“. USD22,760 millions are owed to bondholders.

Analysts have observed that the effect of the bankruptcy filing on the U.S. economy is not expected to be as major as it once would have been. One such voice, Mark Zandy, an economist at Moody’s Economy.com, commented that “Bankruptcy now is irrelevant in terms of the economic consequence of what’s happening to GM.” Such analysts believe that the economic impact of GM’s problems has already been felt, with its effects on parts suppliers and employment. They also believe that GM’s programme of accelerated payments, and its participation in a U.S. Treasury program to ensure prompt payments to parts manufacturers, will have cushioned the effect of the bankruptcy itself.

Speaking on Bloomberg Radio, David Cole, chairman of the Center for Automotive Research in Ann Arbor, stated that the fragility of the parts suppliers, the loss of whom would threaten the entire automobile manufacturing industry, was of more immediate concern than the GM bankruptcy.

Also filing for chapter 11 protection today were Saturn LLC and Saturn Distribution Corporation, subsidiary companies of General Motors.

As a consequence of the bankruptcy, General Motors Corporation (GM.N) was removed from the Dow Jones Industrial Average, and was replaced by Cisco Systems (CSCO.O), these changes scheduled by Dow Jones & Company to take effect from the opening of trading on June 8.