February 22, 2003 |
Accounting firm Deloitte & Touche agreed to settle claims stemming from its audit of collapsed insurer Kentucky Central Life Insurance Co. for $23 million, according to court documents. The settlement agreement was filed in Kentucky's Franklin County Circuit Court for approval. A hearing may be held in early March. The settlement resolves all allegations against Deloitte related to its role as auditor of Kentucky Central Life, which collapsed in 1993.
October 9, 2002 |
The demise Tuesday of Cadiz Inc.'s plan to build a multimillion-dollar water storage project in the Mojave Desert places the company under a huge financial strain that raises the question of whether it can survive. The project, which was to be built in partnership with the Metropolitan Water District of Southern California, was to generate an estimated $500 million to $1 billion in revenue for the company over the next 50 years.
August 1, 2002 |
Enron Corp.'s creditors' committee has asked a bankruptcy judge to force J.P. Morgan Chase & Co. to cooperate with the panel's probe of a series of controversial oil and gas trades. The transactions between Enron and Mahonia Ltd., a bank entity, have been scrutinized by congressional investigators and are the subject of a lawsuit in Manhattan federal court between J.P. Morgan and 11 insurers who guaranteed the trades with surety bonds.
July 31, 2002 |
Vanguard Airlines Inc. filed for Chapter 11 bankruptcy amid a liquidity crunch that forced the low-cost airline to shut down operations and fire about 1,000 employees. The Kansas City-based based carrier said it continued to seek funds in order to resume operations, but Chief Executive Scott Dickson said the company's shutdown probably would be permanent.
July 29, 2002 |
NEW YORK * The Russian Tea Room was jammed with nostalgic borscht fans enjoying martinis and caviar on the restaurant's final day. "My husband and I used to come here all the time, for maybe the past 25 years," customer Claire Strauss said. "They have the best borscht in town." The restaurant, a beloved meeting spot for musicians, actors and publishers next to Carnegie Hall, underwent a three-year, $30-million renovation recently.
July 24, 2002 |
Lawmakers skewered bankers from J.P. Morgan Chase & Co. and Citigroup Inc. on Tuesday, saying their actions to help Enron Corp. disguise more than $8 billion in debt demonstrate why investors are losing faith in Wall Street. "This is shameful," said Sen. Carl Levin (D-Mich.), who chairs the Senate permanent subcommittee on investigations. At a hearing, Levin repeatedly confronted the bankers with e-mails and tape recordings he said contradicted their statements that they did nothing wrong. Sen.
July 10, 2002 |
A long, rich era of British filmmaking abruptly came to a close Tuesday when Channel 4 television closed down its movie production arm, FilmFour. As part of a restructuring following heavy financial losses, FilmFour will cease to operate as a distributor and an international sales company, while its production function will be re-integrated into Channel 4 at a sharply reduced level. Most of its 59 employees are expected to be let go.
July 6, 2002 |
In a sign that the Internet sector may be nearing the end of its brutal shakeout, the number of shutdowns and bankruptcies by dot-com companies in the first half of this year fell 73% from the same period last year, a report from Webmergers.com shows. At least 93 Internet companies closed their doors or filed for bankruptcy protection in the first six months of 2002, down from 345 during the same period last year, according to the San Francisco research firm.
June 27, 2002 |
Stocks plunged Wednesday, then recovered most of their losses, in a volatile session triggered by WorldCom Inc.'s disclosure of an allegedly massive accounting fraud. Coupled with the day's heavy trading volume--the New York Stock Exchange had its busiest session this year--the dramatic turnaround raised hopes that the market may have reached at least a near-term bottom after five straight weekly declines, analysts said.
June 27, 2002 |
WorldCom Inc.'s disclosure of a potentially titanic accounting fraud ratchets up the pressure on securities regulators and criminal prosecutors to prove they are taking aggressive steps to punish executives who break the law. In a demonstration of that urgency, the Securities and Exchange Commission filed a civil-fraud lawsuit against WorldCom in U.S. District Court in Manhattan on Wednesday evening.