- (
) Mortgage company says allegations are unfair and wrong
OMAHA — An Omaha-based mortgage company plans to fight state allegations of misconduct and will try to keep its state mortgage banking license.Bob Goldberg, president of Advantage Mortgage Service Inc., said the company conducts its business "in an exemplary fashion."On its Web site, Advantage Mortgage says it offers loans "for home purchases, refinancing, home equity allocation, debt consolidation and much more." . More>> - (
) PALCO files reorganization plan
The long-anticipated strategy for how Pacific Lumber Co. and its subsidiaries hope to emerge on firm financial footing following their Chapter 11 bankruptcy protection filing in January has been submitted in a federal court in Texas.The several-hundred-page plan, which must be approved in the U.S. Bankruptcy Court for the Southern District of Texas, Corpus Christi Division, aims to provide for the continued operations of PALCO and Scotia Pacific Co. as a single consolidated company.The plan calls for the full repayment of all creditors, which includes $713.8 million owed to timber noteholders and $36.2 million for SCOPAC's line of credit.A key feature identified in the plan is the consolidation of PALCO, SCOPAC and its subsidiaries under a new business model that will continue sawmill and forest operations, but at harvest levels significantly lower than current or historical rates.To pay off its creditors, PALCO is seeking to generate $400 million through the sale of approximately 6,600 acres of SCOPAC's timberlands, which have stringent logging restrictions placed on them to protect the marbled murrelet seabirds that nest there.The first part of the project, which the company hopes to accomplish within 24 months of the plan's approval, will be to sell each of the old-growth forests it calls "Ancient Redwood Groves" as preserves at a value of $60,000 per acre to buyers who are willing to commit to permanent environmental protection.The second phase aims to raise an additional $780 million through the sale of 22,000 acres of lands the plan identifies as "Redwoods Ranch Development," or individual 160-acre parcels to be marketed as "trophy" properties valued at approximately $5 million on average.That would leave approximately 181,000 acres of timberlands for sustained timber harvesting, under the proposed plan.For its part in aiding its cash-strapped subsidiaries, parent company MAXXAM is pledging to make contributions valued at more than $150 million, including providing real estate expertise, to provide $25 million to allow existing noteholders to cash out a portion of their notes, the forgiveness of $40 million in intercompany debt, and tax benefits valued at approximately $85 million.In a statement released on Business Wire, PALCO President and CEO George O'Brien recognized MAXXAM's leadership in standing alongside the company and its significant economic contributions, which he said underscores the confidence MAXXAM has in the company's future."This plan saves a 140-year-old company and creates a viable forest products enterprise that can provide excellent long-term jobs and it does so by putting some of the company's most unique and valuable property to a higher and better use than commercial forestry," O'Brien stated in the news release.While consultants for SCOPAC's creditors have testified in court recently that the companies' equity doesn't exceed their debt and should be liquidated immediately to maximize its value, the submitted plan indicates PALCO's consultants put a value of the lands and businesses in excess of $1.4 billion.Reached by phone Monday, Mark Lovelace, president of the environmental group Humboldt Watershed Council, which has long been critical of PALCO for its alleged environmental violations and unsustainable timber harvesting, called the plan "laughable."Lovelace said he doesn't believe the company will generate the cash it anticipates because no potential buyers will be willing to pay the $60,000-per-acre price for the lands that are already off-limits to logging for the next 42 years under the arrangement of the Headwaters Agreement.He said the only reason anyone might purchase the lands now is because they could be considered undervalued and a steal for someone looking for a bargain."But for PALCO to ask what they are for them now is ridiculous," Lovelace said.In addition, Lovelace said MAXXAM isn't contributing any real financial support as part of the plan, rather it is only shuffling money around.A hearing is scheduled in Corpus Christi this morning at 9 a.m. More>> - (
) Keeping a Sell on Centennial
Revenue performance has been lackluster, following slow subscriber growth and lower roaming traffic. We remain concerned with net debt in excess of $2 billion and limited cash liquidity, although the company plans to redeem approximately $20 million of debt by November 2007. Moreover, we are not encouraged by management's outlook for 2008.\'We continue to await indications of an improved operating profitability as changes in business strategy are taking longer to push upside trends in earnings. Centennial is trading at a 2008 EV/Sales multiple of 3.0x, which represents a significant premium to the telecom-wireless industry group. On the basis of enterprise value (defined as market cap plus debt minus cash) to EBITDA, the stock is also trading at a premium to the peer group average.
\'Also, we are concerned with competitive factors in Centennial's coverage regions as consolidation among tier-I carriers threatens CYCL's customer base and pricing structure. More>>
- (
) T-Mobile to Buy SunCom for $2.4B
T-Mobile USA announced plans to acquire SunCom Wireless Inc. for $2.4 billion in cash and assumed debt. The acquisition is the latest deal in the wave of consolidation rolling through the U.S. mobile market. (See T-Mobile Acquires SunCom.)T-Mobile will pay $1.6 billion in cash and take on $800,000 of SunCom's net debt. SunCom's shareholders will get $27 per share.
. More>> - (
) SBI-SBS merger success key to future consolidation
State Bank of India (SBI), which plans to raise Rs 10,000 crore by December 2007 through equity and debt, will see how the proposed merger of State Bank of Saurashtra (SBS) with itself goes before deciding on consolidating other associate banks.
This was indicated by SBI chairman OP Bhatt. SBS, which is wholly-owned by SBI, is one of seven associates of the country's largest bank. The boards of both banks have cleared the merger proposal. Mr Bhatt said that the consolidation in the banking sector is necessary for faster growth.
According to the SBI chief, the commerce ministry has estimated that the country would require $1.5 trillion to improve infrastructure. "Has any road map being drawn to raise even half of this capital? How would public sector banks raise this capital without the government losing direction or control," he asked. More>> - (
) Vestal Supervisor Race
Voters in Vestal had a chance Tuesday night to meet candidate for town board and supervisor.At the library's Meet the Candidates night, Democratic candidate for Town Supervisor Barry Klipsch and current supervisor Pete Andreasen talked about where they want to lead the town. Klipsch says the town's comprehensive plan should be adopted now. He also says the town should look at consolidation, communicate better with residents, and reign in taxes and spending.
Barry says, "How many of you know how much debt we have in town? Anyone care to guess? Try 18 Million dollars. Under Andrea it was 11 million so over the past year and a half it's gone up seven million and that's not counting another three million that was approved this year that hasn't been bonded."
Andreasen says the town needed money for water tanks, wells, and road repairs. More>>
- (
) Mooreland Partners Opens Silicon Valley Office
Mooreland Partners, an information and communications technology focused investment banking firm, announced today the opening of its Silicon Valley office and the addition of a strong team of former SVB Alliant investment bankers. Mooreland's Silicon Valley team, led by Rick Dalton and Charlie Bullock, will enhance the firm's activities and presence on the West Coast of the U.S. and add to the breadth of the Mooreland's investment banking experience in the technology sector while expanding Mooreland's coverage into the clean tech sector."Our global clients will benefit dramatically from Mooreland adding a local presence in such a key technology market as the Silicon Valley. Bringing onboard a high calibre team with a proven track record of delivering world class advisory services to both West Coast and international companies is a terrific step for Mooreland" said Holt Thrasher. More>>