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MIDWAY GOES BELLY UP: Midway Airlines, a regional carrier for US Airways, gave up its struggle to stay in the air Thursday and will sell its remaining assets to pay off creditors. The airline filed papers in federal bankruptcy court converting the long-struggling airline's reorganization effort into a liquidation. The company had filed for bankruptcy protection in August 2001. "Midway surrenders," said Gerald Jeutter Jr., an attorney at a bankruptcy court hearing. Midway had 188 employees, including about 85 pilots.
MARINEMAX EX-EXEC SELLS: Richard Bassett, who merged his Miami boat dealership with four others in 1998 to form MarineMax, has sold 3.15-million shares in the Clearwater company to Raymond James & Associates and Jefferies & Co. at $15 a share, or a total of 47.25-million. After the sale, shares in the company rose $1.80 to close at $17.80 on the New York Stock Exchange. Bassett, of Lighthouse Point, is a retired president and former director of MarineMax.
EU STARTS NEW MICROSOFT CASE: European Commission antitrust regulators have opened a new case against Microsoft Corp., seeking details about its technology licensing contracts with computer hardware makers. The regulators sent letters to manufacturers requesting information about the contracts following complaints. The case is separate from the commission's 4-year-old antitrust case against the company and isn't likely to be aimed at forcing the software giant to settle that case, lawyers said. "The opening of this new front is likely to be substantive rather than tactical," said Michael Grenfell, an antitrust lawyer with Norton Rose in London. "If there have been complaints then they need to be investigated."
STRONG PROMISES REIMBURSEMENTS: Strong Financial Corp. said Thursday it will reimburse mutual fund investors for any losses experienced as a result of its chairman's trading. Richard S. Strong, who founded the company and serves as chairman and CEO, also said in a statement he would be prepared to resign "if appropriate" and is cooperating with investigators. Strong said he is providing information on trades that may have benefited himself and his friends and family to the New York attorney general's office, the Wisconsin Department of Financial Institutions and the Securities and Exchange Commission.
MASS. FIRES PUTNAM: Massachusetts' pension fund board voted unanimously to withdraw $1.7-billion from state retirement accounts managed by Putnam Investments on Thursday, the same day the company disclosed that federal prosecutors in New York have subpoenaed documents, signaling an apparent widening of the investigation into improper trading of mutual funds. State and federal regulators announced civil actions against Putnam on Tuesday, but this was the first indication of a criminal investigation.
RECORDING INDUSTRY SUES 80: The recording industry filed 80 more federal lawsuits around the country Thursday against computer users it said were illegally sharing music files on the Internet. Those 80 people were among 204 who had been threatened with lawsuits earlier this month by the Recording Industry Association of America. The RIAA said the remaining 124 people had begun settling the claims. The group earlier filed lawsuits against 261 others. It said Thursday it has reached settlements with 156 people, who defense lawyers have said agreed to pay penalties ranging from $2,500 to $7,500 each.
ENRON EX-EXEC ENTERS PLEA: David W. Delainey, a former chief executive of Enron North America, pleaded guilty Thursday to one count of insider trading, acknowledging he was in on a "senior management" scheme to manipulate Enron Corp.'s earnings to meet or exceed Wall Street's expectations. He agreed to cooperate with federal prosecutors in exchange for the plea. His indictment, handed up Wednesday and unsealed Thursday, alleges he sold $4.25-million worth of stock from January 2000 through January 2001 when he knew about internal scams. Delainey agreed to pay $4.25-million to the Justice Department. Separately, he also agreed to pay $3.74-million to the Securities and Exchange Commission. He was freed on his own recognizance.
NO DELAY FOR EBBERS TRIAL: An Oklahoma county judge denied a request by Oklahoma Attorney General Drew Edmondson to delay the state's prosecution of former WorldCom Inc. chief executive Bernard Ebbers for fraud related to the collapse of the bankrupt long distance company. Edmondson wanted to delay the trial until after the securities fraud trial scheduled Feb. 4 of ex-WorldCom chief financial officer Scott Sullivan in federal court in New York. Ebbers is charged with defrauding Oklahoma investors by helping WorldCom misstate $11-billion in revenue and expenses. Ebbers' attorneys argued that, since Ebbers was not on trial in New York, his trial in Oklahoma should not be delayed.
CITIGROUP FINED $1-MILLION: The New York Stock Exchange has fined the brokerage division of Citigroup $1-million for its financial advisers' handling of the accounts of employees of WorldCom Inc. It also issued a censure and a three-month suspension for Michael J. Grace, 48, a former regional branch manager in Atlanta who still works with the firm. Both Citigroup and Grace consented to the action without admitting or denying guilt. The NYSE ordered the fine against Citigroup Global Markets Inc., formerly known as Salomon Smith Barney, for failing to supervise brokers dealing with WorldCom employees.