Actually, the parent company of Midwest Generation, Edison Mission Energy, filed for protection under Chapter 11 of the Bankruptcy Code this week taking Midwest Generation and several other affiliates with it. The bankruptcy documents show that the California-based energy company has over five billion dollars in assets but also has the same amount in debts. Earlier this year, Midwest Generation closed two of its Chicago coal-fired plants. For more on this story and the bankruptcy read, … [Read more...]
Air Line Pilots Association ratifies United Airlines contract
December 18, 2012 by
The Air Line Pilots Association ratified a new labor agreement with United Airlines with almost 98 percent of its members casting votes. The new contract is for four years and provides pilots with more income, more job protection and retirement and benefits compensation. The new agreement was sought by pilots who wanted to end the restrictions imposed when the company was in bankruptcy. The agreement is an important step in continue the merger of United Airlines and Continental. For more … [Read more...]
Cook County aide failed to disclose job in bankruptcy
December 18, 2012 by
An aide in the Cook County Circuit Court Clerk’s Office failed to disclose that she had a job paying over $100,000 in her bankruptcy case. Yvonne Davila was hired by CookCounty in May but failed to disclose her job when she filed for relief under Chapter 7 the next month. The failure to disclose the income could have resulted in her receiving a bankruptcy discharge under Chapter 7 when she was not qualified to file under Chapter 7. For more details you can read the full story at “County … [Read more...]
Detroit’s financial problems and possible bankruptcy
December 17, 2012 by
A review of Detroit’s finances reveals a city that is in serious financial trouble. The report opens the door to a deeper review of the city’s financial health that could possible lead to leaders declaring a fiscal emergency. There is currently legislation before the Michigan Legislature that would give Detroit the option of filing for bankruptcy under Chapter 9. If this was to occur, it would be the biggest municipal bankruptcy filing in U. S. history. For more details read, “Detroit has … [Read more...]
Edison Mission Energy considering bankruptcy
December 17, 2012 by
Sources close to Edison Mission Energy have said that the unregulated power generation company is close to filing a bankruptcy case in an attempt to restructure approximately $5 billion in debt. Edison Mission is based in Santa Ana, California but also has renewable power plants in Illinois, Pennsylvania and West Virginia. The recession, less demand for power and cheaper natural gas have all contributed to Edison’s debt problems. With the expiration of a grace period on its $97 million … [Read more...]
Fox Lake will collect bills from state refunds
December 14, 2012 by
The Village Board of Fox Lake approved the village’s agreement with the Comptroller’s Office to join the state’s local debt recovery program. The program allows local authorities to participate in the state’s program to collect debts from taxpayers’ state income tax refunds. The village has had a problem with some residents not paying what they owe to the village; therefore, the board decided to take advantage of the state’s program to collect unpaid bills from state tax refunds. For more on … [Read more...]
Illinois will be hurt if country plunges over the “fiscal cliff”
December 13, 2012 by
Experts for the government are estimating that Illinois stands to lose up to $1 billion in federal revenue if the government does not reach an agreement to avoid the “fiscal cliff.” If the tax cuts expire at the end of the year, Illinois stands to lose over $300 million in federal grants covering education, public housing and nutrition programs for low-income families. It would also lose $740 million in defense money. This will be devastating to Illinois, which already has serious financial … [Read more...]
Chinese company wins bankruptcy auction for A123
December 12, 2012 by
At a bid of $250 million, Wanxiang purchased battery maker A123 out of bankruptcy. Wanxiang outbid other companies including Johnson Controls, Inc. and NEC Corp. A123’s government and military contracts were a major concern for many close to the auction; however, Wanxiang did not purchase those items as part of its bankruptcy bid. Those contracts were purchased by another company in a separate bid. Wanxiang has said that it will not lay off workers. A123 is the second American battery … [Read more...]
Fiscal cliff could hurt those on food stamps
December 11, 2012 by
Going over the fiscal cliff will affect the poor in addition to affecting the middle class and the wealthy by increasing their taxes. Those on assistance programs such as food stamps could see a decline or even an end to their aid if Congress does not act quickly. SNAP (Supplemental Nutrition Assistance Program), is covered by the farm bill, which expired in September. Congress has not extended the benefits and could even make it more difficult to receive aid in any bill that is passed to … [Read more...]
U.S. company and Chinese company battle to buy A123 out of bankruptcy
December 11, 2012 by
A123, a government-backed battery maker, filed for bankruptcy relief under Chapter 11 in October. The plan was to sell its battery business to Johnson Controls, a U.S.company for $125 million. However, the sale will be subject to the highest bidder at an auction this month. A company from China, Wanxiang Group Corp, is interested in buying A123’s battery business at the auction. However, because A123 has ties to federal agencies and the military, some senators are worried that the sale … [Read more...]
