Huge. Stockton, California Chapter 9 Bankruptcy to Go Forward

According to an article by the Los Angeles Times the City of Stockton, California is allowed to proceed on the path of their chapter 9 municipal bankruptcy. This is a huge development as municipal bankruptcies are not only rare, but exceedingly hard to pursue.

The battle will be over the treatment of Stockton's pension liability of close to a billion. That's right, close to a billion dollars of unfunded pension liability. Does this sound familiar? Illinois' pension system is also in a mess and its municipalities are going to be hard pressed to avoid Stockton's fate.

My opinion is that Stockton is thinking smart as there is no way that its citizenry can be expected to make up this shortfall by way of higher taxes and austerity measures.

The author, Ben W. Koyl, is an attorney located in Chicago, IL. He is the principal of the Law Office of Ben W. Koyl, P.C. with offices located in the Chicago Loop, Beverly Woods / Blue Island, and Joliet, IL. The firm's website is http://www.chicagobklaw.com.

Dex One Files for Chapter 11 Bankruptcy, Not Really Surprised

It looks as if Dex One has filed for chapter 11 bankruptcy protection, allowing it to merge with struggling Supermedia, Inc. As stated in the Reuters article, the companies are attempting to merge thereby allowing them to repackage their debt and ultimately to free up cashflow for shareholders.

Well Dex's stock went up after the announcement of this merger, but I believe that this is temporary unless this new company is willing to do things differently.

I can tell you from personal experience as a Dex client that print advertising is nearly dead and online directories like dexone.com etc. are not nearly as efficient or effective as a nice Google search placement. Frankly, if you take those two out Dex can only be an SEO company, and they will need to come down in price. After my contracts are up with them I am done for sure with them.



The author, Ben W. Koyl, is an attorney located in Chicago, IL. He is the principal of the Law Office of Ben W. Koyl, P.C. with offices located in the Chicago Loop, Beverly Woods / Blue Island, and Joliet, IL. The firm's website is http://www.chicagobklaw.com.

Boeing outrivals Airbus in new orders

Boeing outrivals Airbus in new orders

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Published: 13 July, 2012, 13:29

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Investment, Manufacturing,Corporate Results, Corporate news

Boeing 737 (RIA Novosti / Ilya Pitalev)

Boeing has outpaced Airbus in the number of orders for the aircraft at this year's Farnborough Air show, booking potential deals worth more than double than its European rival.

Boeing said it took total orders and commitments over the past week for 396 airplanes, valued at around $37 billion. That is more than double Airbus' performance of $16.9 billion in orders and commitments for a total of 115 aircraft. 

The past week provided some relief for Boeing, though it still has a long way to go to make up for last year's shortfall, when Airbus clinched $72 billion worth of orders, around $50 billion more than Boeing had secured.

Most of Boeing's business this week has been in response to the challenge presented by the Airbus A320neo. Its 737 airplane, particularly the new MAX variant, made a successful debut, especially when the company agreed to a firm $14.7 billion order from United Airlines.

United, the largest US carrier by revenue, agreed to buy 150 Boeing 737s to replace older planes that are not as fuel-efficient.

"We negotiated what we believe to be the best airplanes with the best engines at the best price," said Jeff Smisek, President and CEO of United.

United Airlines’ order includes 100 of Boeing's new fuel-efficient 737 Max 9s, which will start being delivered to United in 2018. United is also buying 50 of Boeing's current 737s and they are due to start arriving in late 2013. 

However, total sales of 282 Airbus and Boeing jets at the Farnborough air show this week fell 36 percent from the 2011 expo in Paris. The decline in overall orders compared to the previous year is no surprise amid the current economic turmoil and the scale of government cutbacks around the world.

And though it’s still too early to draw a final line under the sum of the money raised by deals, as customers rarely pay the full price when ordering big, most commitments end up becoming firm orders.

Airbus has reportedly secured a strong commitment from Hong Kong-based Cathay Pacific for its new A350 long-haul aircraft. On Thursday, Airbus wrapped up its air show with a series of deals worth $6.35 billion.

It revealed that Russian carrier UTair has ordered 20 short-haul A321s in a deal valued at $2 billion at list prices. Airbus also announced that Synergy Aerospace, a Latin American company, has firmed up a previous $1.9 billion order for nine long-haul A330 planes. 

In addition, it said Middle East Airlines has signed a memorandum of understanding to buy 10 A320neo aircraft, worth $1 billion at list prices, and that Irish leasing company Avolon has committed to buy 15 A320neo aircraft, worth $1.45 billion at list prices

Philadelphia Orchestra Re-Emerges from Bankruptcy

Good new for classical music lovers everywhere!  The Philadelphia orchestra re-emerged from bankruptcy last month.  Orchestra chairman, Richard Worley, described exiting bankruptcy as“getting out of jail.”  Despite these feelings, orchestra chairman felt bankruptcy (Chapter 11) was still the right choice at the time.  Worley was grateful for all the individuals who “helped save this wonderful, living, breathing treasure.”  The orchestra received a $50 million dollar “gift” which is being moved to an account at Northern Trust.

Loose ends still need to be tied in the month of September.  Litigations continue to address $180,000 for 2 concerts that have yet to be paid by a South Korean presenter.  Furthermore, “a Sept. 24 hearing will consider some of the 85 claims by creditors being contested by the association”.

Experts believe there are many reasons contributing to the bankruptcies of several orchestras’ around the country, such as Honolulu Symphony and Syracuse Orchestra.  One of the major reasons is the decline in interest of classical music among the newer generations.  Although classical music has survived the era of jazz, big band, and swing, the cut in music programs throughout the United States is also preventing the younger generation from learning about classical music, thereby contributing to its overall decline. 

Experts also believe there is a connection between the bankruptcies of orchestra and the cities to which they belong.  Cleveland is a prime example.  Once regarded as a “jewel of the Midwest”, Cleveland is now a struggling industrial city. As more and more Cleveland residents have moved away to secure jobs, the city’s orchestra also lost patrons.

http://americancity.org/daily/entry/the-orchestra-and-the-city

The Philadelphia Orchestra should take the Rochester Philharmonic Orchestra as an example of what to do.  By adapting to change the Rochester Philharmonic Orchestra was able to recover from bankruptcy.  Reinvention will be key.

The author, Ben W. Koyl, is an attorney located in Chicago, IL. He is the principal of the Law Office of Ben W. Koyl, P.C. with offices located in the Chicago Loop, Beverly Woods / Blue Island, and Joliet, IL. The firm's website is http://www.chicagobklaw.com.

Philadelphia Orchestra Re-Emerges from Bankruptcy!

Good new for classical music lovers everywhere!  The Philadelphia orchestra re-emerged from bankruptcy last month.  Orchestra chairman, Richard Worley, described exiting bankruptcy as“getting out of jail.”  Despite these feelings, orchestra chairman felt bankruptcy (Chapter 11) was still the right choice at the time.  Worley was grateful for all the individuals who “helped save this wonderful, living, breathing treasure.”  The orchestra received a $50 million dollar “gift” which is being moved to an account at Northern Trust.

Loose ends still need to be tied in the month of September.  Litigation continues to address $180,000 for 2 concerts that have yet to be paid by a South Korean presenter.  Furthermore, “a Sept. 24 hearing will consider some of the 85 claims by creditors being contested by the association”. 

 

Experts believe there are many reasons contributing to the bankruptcies of several orchestras’ around the country, such as Honolulu Symphony and Syracuse Orchestra.  One of the major reasons is the decline in interest of classical music among the newer generations.  Although classical music has survived the era of jazz, big band, and swing, the cut in music programs throughout the United States is also preventing the younger generation from learning about classical music, thereby contributing to its overall decline. 

Experts also believe there is a connection between the bankruptcies of orchestra and the cities to which they belong.  Cleveland is a prime example.  Once regarded as a “jewel of the Midwest”, Cleveland is now a struggling industrial city. As more and more Cleveland residents have moved away to secure jobs, the city’s orchestra also lost patrons.

http://americancity.org/daily/entry/the-orchestra-and-the-city

The Philadelphia Orchestra should take the Rochester Philharmonic Orchestra as an example of what to do.  By adapting to change the Rochester Philharmonic Orchestra was able to recover from bankruptcy.  Reinvention will be key.

The author, Ben W. Koyl, is an attorney located in Chicago, IL. He is the principal of the Law Office of Ben W. Koyl, P.C. with offices located in the Chicago Loop, Beverly Woods / Blue Island, and Joliet, IL. The firm's website is http://www.chicagobklaw.com.