| Movie Gallery Receives Final Approval of Debtor-In-Possession Financing
DOTHAN, Alaska, Nov. 14 /PRNewswire-FirstCall/ -- Movie Gallery, (Nachrichten) Inc. (OTC Pink Sheets: MOVIQ) today announced that the United States Bankruptcy Court for the Eastern District of Virginia, Richmond Division (the "Bankruptcy Court"), granted final approval of its $150 million debtor-in-possession (DIP) credit facility. The facility is being arranged by Goldman Sachs Credit Partners L.P. The Company previously received interim approval of the DIP credit facility from the Bankruptcy Court on October 16, 2007. The DIP financing and cash generated from daily operations will be used to continue to pay vendors and employees, as well as provide operational and financial stability as Movie Gallery proceeds with its financial restructuring. The Company is in compliance with all of the terms and conditions of the DIP credit agreement.
Lafayette suspends shares on restructuring doubts
SYDNEY - Lafayette Mining Ltd, requested a halt to trading in its shares on Wednesday, saying financial restructuring support from a Malaysian private equity group would not proceed under terms proposed last month. The restructuring, backed by South-East Asian Strategic Assets, would have eliminated around A$300 million ($265 million) of Lafayette's debt and bad hedges with the help of a $151 million capital raising. The proposal would have left other investors with as little as 9 percent of Lafayette when the Malaysian group exercised call options over the company. "We have been informed that the cornerstone investor does not wish to proceed with the exercise of the call option on the terms envisaged," Lafayette said. Negotiations with stakeholders were taking place, Lafayette said. The trading halt was likely to last until at least Nov.
N.J.'s debt burden tops $38B
A new report shows New Jersey's record debt is now above the $38 billion mark, a figure Governor Corzine has vowed to slash in half with a yet-to-be disclosed "financial restructuring" plan that includes toll hikes. The new total debt number comes just as Corzine is ramping up his effort to convince residents that toll increases are the best way to fix the state's financial problems. He is expected to roll out details of the plan in early January. .
Newmark Homes' parent company considering bankruptcy
Homebuilder TOUSA Inc. said it is considering filing for Chapter 11 bankruptcy protection after reporting a deep third-quarter loss. "Based on the foregoing, the company believes there is substantial doubt about its ability to continue as a going concern," the Hollywood, Fla.-based company said in a statement. TOUSA said it is considering all available in- and out-of-court restructuring and reorganization alternatives, "including a possible Chapter 11 filing." TOUSA owns the homebuilding brands Engle Homes, Newmark Homes, Fedrick, Harris Estate Homes and Trophy Homes. In San Antonio, the company builds homes under the Newmark Homes brand. In the company's latest financial report for the quarter ended Sept. 30, TOUSA reported losing $619.7 million, or $10.43 a share, on revenues of $501.2 million.
(AFX UK Focus) 2007-11-19 12:00 GMT: Northern Rock's bank financial strength cut to 'd+'; outlook negative - Moody's
MUMBAI (Thomson Financial) - Moody's Investors Services downgraded Northern Rock PLC's bank financial strength rating (BFSR) to 'D+' with a negative outlook from 'C-' with a developing outlook. It said the 'D+' maps into a Baseline Credit Assessment of 'Ba1'. Moody's said that the downgrade of the bank's BFSR reflects the more significant impairment of the bank's franchise as the effort to find a corporate solution has proven more protracted than initially expected. The rating agency said it sees the likelihood of a swift sale of the bank to a large and highly rated financial institution to be possible but less likely than initially anticipated. The downgrade also reflects its view on the bank's future profitability as a result of its increased cost of funding, expected lower levels of new business and possible restructuring costs.
Seoul marks recovery from 1997 crisis
South Korea has fully recovered from the devastating 1997 economic crisis, the government said yesterday on the eve of its anniversary, but commentators said crucial reforms were still not in place. On Nov. 21, 1997, Seoul asked the IMF for a bailout of US$57 billion -- the largest in the fund's history -- to avoid a state bankruptcy. In return it effectively gave up sovereignty over the economy, accepting tough austerity measures -- including high interest rates -- prescribed by the IMF. The turmoil swallowed up 16 of the 30 largest business conglomerates, including the second-largest Daewoo Group, and forced some 900 financial institutions out of business. Millions lost their jobs due to corporate restructuring and insolvencies, even though the government injected some US$180 billion to bail out failing businesses and financial institutions.
Samsung Work Force Shrinks
The number of employees at Samsung Electronics has fallen for the first time in five years, the company said Monday, though it emphasized the reductions were not part of any broader restructuring. Samsung Electronics Co. is the world's biggest manufacturer of memory chips and flat screen TVs and makes a range of consumer electronics, including mobile phones. The company had 1,630 fewer workers as of Sept. 30 compared with the total six months earlier, spokeswoman Lee Eun-hee said, citing figures reported last week to South Korea's financial regulator. She said the work force reduction was voluntary and not part of a larger restructuring. "It has nothing to do with downsizing," she said. Samsung Electronics is the flagship unit of Samsung Group, South Korea's largest conglomerate.
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