Delta says it has financing to exit bankruptcy
By TIMES WIRES
Published January 31, 2007
Delta Air Lines Inc., the nation's third-largest carrier, said Tuesday it has obtained a commitment for $2.5-billion in exit financing as part of its plan to emerge from bankruptcy by the middle of this year as a standalone company. The financing will be led by six financial groups: JPMorgan, Goldman Sachs & Co., Merrill Lynch, Lehman Brothers, UBS and Barclays Capital. The company still faces a hostile takeover bid by US Airways Group Inc. of Tempe, Ariz. US Airways has set a Thursday deadline for the committee to meet certain conditions or the bid will be withdrawn.
Tax breaks key to wage law passage
The Senate cleared the way for an increase in the minimum wage Tuesday, but only with business tax breaks that House Democrats want removed. Final Senate passage of the legislation is expected later this week, setting the stage for a round of difficult negotiations between House and Senate Democrats over how to get the legislation to President Bush. The vote Tuesday emphasized how Senate passage of the bill depends on the tax package to attract Republican votes. The White House has also signaled that Bush wants tax breaks in the legislation.
Plan allows pilots to fly until age 65
Airline pilots could keep flying until age 65, five years beyond the current limit, under a Federal Aviation Administration proposal announced Tuesday. The plan could help the industry cope with a growing pilot shortage and mounting pension costs. FAA chief Marion Blakey said the agency would formally propose a rule this year, and then would need time to weigh public comments. Writing the final rule could take two years, she said.
Sony BMG to settle antipiracy CD case
U.S. regulators said Tuesday that Sony BMG Music Entertainment agreed to reimburse consumers up to $150 for damage to their computers from CDs with hidden antipiracy software. According to the Federal Trade Commission, which announced the settlement with the big media company, its antipiracy software limited the devices on which music could be played to those made by Sony Corp. or Microsoft Corp. It also restricted the number of copies that could be made and monitored consumers' listening habits to send them marketing messages. The FTC said the software also "exposed consumers to significant security risks and was unreasonably difficult to uninstall."
Hedge fund scam lands trader in jail
The owner of a hedge fund management firm who admitted to a scheme in which he manipulated the price of two biotechnology stocks was sentenced Tuesday to three years in prison and three years of supervised release, federal prosecutors said. Between November 2002 and July 2003, Scott Sacane of Weston, Conn., who owned and controlled Durus Capital Management LLC, manipulated the stock prices by concealing purchases of shares through false filings with the Securities and Exchange Commission, U.S. Attorney Kevin O'Connor said.