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Progress to cooperate in N.C. nuclear inspection

By Times Staff
Published January 10, 2006

Progress Energy chairman and chief executive Bob McGehee said Monday that the Raleigh, N.C., utility will cooperate fully with a Nuclear Regulatory Commission inspection looking into alleged lax security at the company's Shearon Harris nuclear plant near Raleigh.

"When these allegations were brought forth, we launched an immediate internal investigation," McGehee said in a statement. "While we continue to look at a few of the specific allegations, we have confirmed that the plant is secure and protected."

Progress also operates three other nuclear plants, including an 838-megawatt nuclear reactor at its Crystal River power complex.

Saks has new chief, may sell Parisian stores

Retailer Saks Inc. said Monday it was considering selling its Parisian department store chain and announced the replacement of longtime chief executive Brad Martin with chief operating officer Stephen I. Sadove.

Saks also said Sadove would assume the responsibilities of Fred Wilson, chairman and chief executive officer of Saks Fifth Avenue Enterprises. The company said Wilson quit after directors decided to eliminate the position.

Shares of Saks rose almost 5 percent on the news.

Parisian, which operates 40 stores in nine states, had projected revenue of $700-million last year. But Saks of Birmingham, Ala., said it was considering alternatives that include the sale of the stores.

State considers changes to tree-removal law

A state law requiring the removal of trees within 1,900 feet of one infected with citrus canker is being reviewed by the Florida Department of Agriculture in the aftermath of four damaging hurricanes last summer.

The storms that struck Florida last year, which caused an estimated $2.2-billion in damage to the state's crops and farming infrastructure, are also thought to have spread the diseases that threaten the state's $9-billion citrus industry.

Agriculture officials estimated Wilma and Katrina could be responsible for spreading canker to 183,000 acres, or a quarter of the state's commercial citrus groves.

As the agriculture department tries to determine how far canker was spread by the hurricanes, growers have sought a less restrictive approach than the 1,900-foot law. They are trying to limit tree removals after already losing valuable trees to the hurricanes, especially Katrina and Wilma.

Any change would have to be done by the Legislature.

United: $3-billion loan will end bankruptcy

United Airlines' parent company said Monday it has launched its bankruptcy exit financing loan of up to $3-billion, effectively starting the countdown toward the conclusion of its three-plus years in bankruptcy.

UAL Corp. said it intends to leave bankruptcy "on or about" Feb. 1, as planned for months. A bankruptcy judge must first sign off on the company's exit plan following a Jan. 18 hearing.

The company obtained an agreement for the six-year exit loan last fall from JPMorgan Chase & Co. and Citigroup Inc., with GE Capital to act as syndication agent.

AmeriDebt founder reaches suit settlement

The founder of the credit counseling firm AmeriDebt on Monday agreed to pay $35-million to settle suits filed by regulators and former customers over $172-million in allegedly hidden fees the company collected from financially strapped debtors.

The money that Andris Pukke pays would go to a fund that will be used to reimburse the roughly 300,000 customers the Federal Trade Commission says AmeriDebt Inc. deceived.

Pukke, who made a fortune off businesses that catered to customers in debt, is also barred from working in credit counseling, debt management or telemarketing as part of the settlement.

[Last modified January 10, 2006, 18:52:50]