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The Illinois Finance Authority approved $90 million in new bonds for Clare Oaks as part of a reorganization plan approved by the U. S. Bankruptcy Court earlier this month.  The bond exchange was part of the bankruptcy reorganization plan proposed by Clare Oaks and was approved by existing bondholders over a sale of the retirement community.  As part of the bond exchange, bondholders will lose about $23 million on the nonprofit retirement home. For more on this story read, “Bondholders out $23 … [Read more...]

Motorola’s CEO, Greg Brown, granted an interview with Crain’s last week to discuss doing business in Illinois, and specifically Chicago.  In addition to commenting on the economic state of Illinois and Chicago, Brown answered questions about the fiscal cliff, spending cuts and tax increases nationally.  He also offered his opinion about how President Obama could improve his relationship with big business and how 2013 looks for those still searching for employment. For more of the interview … [Read more...]

In a counterproposal to legislation regarding the state’s underfunded pension system, a coalition of public employee unions has offered to pay more taxes and increase contributions.  In return for this agreement, the unions want the state to guarantee retirement payments and end corporate tax benefits.  The unions also call for imposing new taxes to raise revenues.  This is the first comprehensive offer by the union coalition to help alleviate the pension crisis facing the state. You can read … [Read more...]

THQ, Inc., which is best known for its wrestling games and “Saints Row” games, has been struggling financially for some time.  It had already cut costs by shutting down parts of its business operations and cutting staff.  However, it was not enough to keep the company for filing for bankruptcy relief this week.  THQ states that it will sell its business assets through the bankruptcy.  An investment firm, Clearlake Capital Group, has already offered to buy the assets. One of THQ’s U.S. studios … [Read more...]

As part of its deal to obtain $830 million in financing, Eastman Kodak Co. has entered an agreement with several companies to sell its digital imaging patents.  The sales price for the patents is approximately $525 million.  Some of the well-known technology companies involved in the purchase include Adobe Systems Inc., Apple Inc., Microsoft Corp and Samsung Electronics Co. Ltd.  The sale of the patent portfolio took longer than expected; however, with the patent sale Kodak expects to exit … [Read more...]

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...]

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...]

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...]

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...]