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Nortel, which has around 2,10p0 employees in the made the filing in Delawarde a day before the deadline for the compang to makea $107 million interest payment. The Toronto-base company also filed for bankruptcyu protectionin Canada. The future of the company’as operations in the Triangle area, wheres Nortel (NYSE: NT) has long stoodd as one of the cornerstones of the technology is unclear. For now, companyg spokesman Jay Barta says, business will continue as No local workers have yet been cut as a resul ofthe bankruptcy, thoughh the company is reviewing cost-cutting optionas to reduce costs.
“Wde are moving forward with day-to-day operations without interruptionb and plan to continue to honor ourcustomer commitments, inves t in leading edge R&D, and do everything we normally do for the benefi of our customers and partners,” Barta In its bankruptcy filing, Nortepl lists more than $1 billion in both assetsz and debt. The company'ws large debt load has been one of the key concernss aboutthe company's ability to stay and The Wall Street Journalo reported in December that Nortel had hireed counsel to consider a bankruptcy filing. It's analysts said Wednesday, that Nortel's next step will be to sell largew chunks of its assets in orde toraise cash.
What's less clear is whether that will lead tothe company'e emergence as an independent, but significantly smaller, player or whether Nortel will simply be sold off The (Toronto) Globe and Mail reportex that Nortel is likely to be splift up and sold off to its rivals. The compan y could emerge from bankruptcy, the paper said, but it will be tough because its bankruptcy filing is almos t certain to lead to less Analyst Nikos Thodosopoulos told the Reuters news servic that a bankruptcy filling will let Nortelmake "more logicalo and timely decisions" on asset which might help it survive.
The distinction is an importang onefor RTP, which housees a good amount of work in Nortel'ws unit that sells equipment and services to big business. That unit is doint significantly better than what hasbeen Nortel'a cash cow: sales to telephonre service providers that rely on a technolog called CDMA to builde their networks. If Nortel did emerge as an independentt company, says ABI Researchg analyst Nadine Manjaro, professionaol services and equipment for enterprises woulsd be the crux ofthe company's That could save some jobs in RTP. "Service s and enterprise is where the growthopportunitiexs are," Manjaro says. "It’ll make sense.
" If Nortel can't make that the prospect of RTP keeping many jobs becomewmuch dimmer. Business shifts, accountinhg scandals hurt company That would be an extraordinart turnaroundfor Nortel, which during the technology boom was one of the businesx world’s greatest success storiesa – and one of the largest employerse in RTP. But that boom eventually went bust, and sincew then, Nortel’s fall has been steady. The company lost grounfd to competitors, such as , that sell equipmen t for Internet transmissionsof data, voice and video. The CDMA which provided more than 40 percentof Nortel'ss sales, tanked.
And the company has been rockef by accounting scandals that caused it to restate earningx multiple times this Severaltop executives, including CEO Frank Dunn, were among the casualties. Nortel’s stock, which once traded at $1,200o U.S. on a split- and dividend-adjusted fell below $1 in Shares closed Jan. 13 at 32 cents. The company had nearly 10,000 workers in the Raleigh-Durham area in the late 1990s. That numbedr has fallen steadily since then and now stands ataboutt one-fifth of its peak.
Tuesday, 29 January 2013
Sunday, 13 January 2013
Japan shows the world how to come out of economics of stagnation - Economic Times
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Economic Times | Japan shows the world how to come out of economics of stagnation Economic Times Long before the 2008 financial crisis plunged America and Europe into a deep and prolonged economic slump, Japan held a dress rehearsal in the economics of stagnation. When a burst stock and real estate bubble pushed Japan into recession, the policy ... |
Saturday, 12 January 2013
Five owners leave KZF to form new firm - Business Courier of Cincinnati:
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opened two months ago at the Hamilton Counttybusiness incubator. Its nine employees include five formed ownersat , including formeer CEO Steve Kimball, and threde former members of its executives committee. Kimball said the defection stemmed from a disagreement with other owners aboutthe "long-term view" for KZF, which the Business Courier ranked in June as Cincinnati'ss 11th largest architectural/engineering firm with 23 localk architects, 18 engineers and $13.6 million in annualk local revenue.
Kimball was "dismissed by the executivd committee about two weeks before the annua l meeting as a matter ofperformance evaluation," said KZF Chairman Greg who adds the former owners representes about 10 percent of the tota l ownership group. For KZF, a 51-year-old firm with a headquartersx nearEden Park, it's the firstf ownership schism since the 1980s. "It's not rare withib the industry. It's rare for KZF," said "They've all been replaced. We'rew still serving the same markets and clients and we feel good aboutgthe future.
" In addition to Kimball, the founders of Emersion Design includse Jim Cheng, a former desigh principal at KZF, knowjn for his work on the new wing of the ; and Mark who served as lead project architect for the downtown. Alan Hautmamn was government services directorat KZF. Simon Sapsfordf was director of structuralengineering services. "It's a prettg powerful group that's worked together for 20 said Kimball. "For a small we probably offer as much experiencwe and opportunity for clients as they can find in most of the largee firms inthe city.
" Kimball said the firm has landed a dozej clients since its July 3 It's focusing on the higher education and corporate markets and expects first-year revenue of $750,000. The plan is to grow to $4 milliobn in revenue and 20 to 30 employees withibnthree years. Back at KZF Design, new CEO Williamm Wilson is managing growth inthe company's new Atlanta Rhoads also said the firm is exploringv acquisitions in three other cities. The financia l hole has gotten deeper atthe .
When UC' audited financial statements are releasedin October, they will show a roughlyg $185 million deficit in unrestricted net The balance-sheet indicator is beingh watched by bond-rating agencies because the deficit has grownn sevenfold since 2001. It represents operating deficitsz that have accumulated at various colleges over the lastseverao years. UC Finance Vice President James Plummer predicted in June that the defici t wouldbe $165 million when the books closex on the 2007 fiscal year, then decline by $30 millionm next year. But in an interview this Plummer said a deficit reduction that was expected from the medicapl campus didnot materialize.
So, the accumulatedx operating deficit will growby $20 million in the 2007 annual report. 's analystr Diane Viacava said she was aware of the setbacok when her agency issued a ratingsreport 4, maintaining UC's debt rating at "A1" with a negativde outlook. "We recognize it's a challenged organization," Viacava "We realize they will face challenges in tryinvg to reversetheir position.
"
opened two months ago at the Hamilton Counttybusiness incubator. Its nine employees include five formed ownersat , including formeer CEO Steve Kimball, and threde former members of its executives committee. Kimball said the defection stemmed from a disagreement with other owners aboutthe "long-term view" for KZF, which the Business Courier ranked in June as Cincinnati'ss 11th largest architectural/engineering firm with 23 localk architects, 18 engineers and $13.6 million in annualk local revenue.
Kimball was "dismissed by the executivd committee about two weeks before the annua l meeting as a matter ofperformance evaluation," said KZF Chairman Greg who adds the former owners representes about 10 percent of the tota l ownership group. For KZF, a 51-year-old firm with a headquartersx nearEden Park, it's the firstf ownership schism since the 1980s. "It's not rare withib the industry. It's rare for KZF," said "They've all been replaced. We'rew still serving the same markets and clients and we feel good aboutgthe future.
" In addition to Kimball, the founders of Emersion Design includse Jim Cheng, a former desigh principal at KZF, knowjn for his work on the new wing of the ; and Mark who served as lead project architect for the downtown. Alan Hautmamn was government services directorat KZF. Simon Sapsfordf was director of structuralengineering services. "It's a prettg powerful group that's worked together for 20 said Kimball. "For a small we probably offer as much experiencwe and opportunity for clients as they can find in most of the largee firms inthe city.
" Kimball said the firm has landed a dozej clients since its July 3 It's focusing on the higher education and corporate markets and expects first-year revenue of $750,000. The plan is to grow to $4 milliobn in revenue and 20 to 30 employees withibnthree years. Back at KZF Design, new CEO Williamm Wilson is managing growth inthe company's new Atlanta Rhoads also said the firm is exploringv acquisitions in three other cities. The financia l hole has gotten deeper atthe .
When UC' audited financial statements are releasedin October, they will show a roughlyg $185 million deficit in unrestricted net The balance-sheet indicator is beingh watched by bond-rating agencies because the deficit has grownn sevenfold since 2001. It represents operating deficitsz that have accumulated at various colleges over the lastseverao years. UC Finance Vice President James Plummer predicted in June that the defici t wouldbe $165 million when the books closex on the 2007 fiscal year, then decline by $30 millionm next year. But in an interview this Plummer said a deficit reduction that was expected from the medicapl campus didnot materialize.
So, the accumulatedx operating deficit will growby $20 million in the 2007 annual report. 's analystr Diane Viacava said she was aware of the setbacok when her agency issued a ratingsreport 4, maintaining UC's debt rating at "A1" with a negativde outlook. "We recognize it's a challenged organization," Viacava "We realize they will face challenges in tryinvg to reversetheir position.
"
Friday, 11 January 2013
Debating Unemployment Benefits' Role in Long-Term Joblessness - Wall Street Journal (blog)
tatyanagepoji.blogspot.com
Wall Street Journal (blog) | Debating Unemployment Benefits' Role in Long-Term Joblessness Wall Street Journal (blog) One of the more contentious arguments in economic circles in recent years has surrounded the role extended unemployment benefits have played in the nation's persistently high rate of joblessness. Now in a twist on that argument, some eco nomists ... |
Thursday, 10 January 2013
Eagle Geophysical, subsidiary file for Chapter 11 - Houston Business Journal:
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Houston-based Eagle (Pinksheets: EAGG) was formed in 1993 to provid e geophysical services to upstream oilfieldservice companies. In the voluntaru petition filed with the Unitede States Bankruptcy Court for the Southerb Districtof Texas, the company listede assets of more than $1 million and liabilities of more than $10 A company filing also showed that it terminated the employmen of seven of its top executives includinf Robert Wood, president and chieff operating officer, and John chief financial officer. The four others were listerd as directors, and one was a vice president. A. John Knapop Jr. remains the company’s chairmajn and H. Malcolm Lovett Jr.
has been named chief reorganizatiob officer. Eagle’s largest unsecured creditors include: Houston-basee Eagle Equipment Leasing; John Kornitzer of Kan.; Eagle Canada Inc.; Eagle Geophysical Offshore FixexIncome Trust; and Dallas-based Realtime Geophysical Surveys LP.
Houston-based Eagle (Pinksheets: EAGG) was formed in 1993 to provid e geophysical services to upstream oilfieldservice companies. In the voluntaru petition filed with the Unitede States Bankruptcy Court for the Southerb Districtof Texas, the company listede assets of more than $1 million and liabilities of more than $10 A company filing also showed that it terminated the employmen of seven of its top executives includinf Robert Wood, president and chieff operating officer, and John chief financial officer. The four others were listerd as directors, and one was a vice president. A. John Knapop Jr. remains the company’s chairmajn and H. Malcolm Lovett Jr.
has been named chief reorganizatiob officer. Eagle’s largest unsecured creditors include: Houston-basee Eagle Equipment Leasing; John Kornitzer of Kan.; Eagle Canada Inc.; Eagle Geophysical Offshore FixexIncome Trust; and Dallas-based Realtime Geophysical Surveys LP.
Tuesday, 8 January 2013
Stowers Institute affiliate endows life sciences chairs at University of Kansas Medical Center, University of Missouri-Kansas City - Kansas City Business Journal:
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million apiece from a affiliatew to endow a life sciencees chair ateach institution. UMKC Chancellofr Leo Morton saidthe money, which came from the nonprofit BioMef Valley Corp., will enhance the research relationship betweenh Stowers and the . KU Med probablu will use the money to recruita physician-scientistt working on cancer research, spokeswoman Amy Jordaj Wooden said in an e-mail. “Givehn how tight the state budget is,” she said, “we need philanthropic dollar s like this generous gift from the Stowers to keep our momentum going.” She said the BioMed Valley money also will let the schoo leverage state matching funds for distinguishe faculty.
The distribution from BioMed Valley, whichg was formed in 2003, came as the organizatiohn endeda research-partnership program with the two The program was intended to foster collaboration between Stowers and the two institutions in the areas of basic-celpl and molecular-biology research. Through the the annual financing for the schools was limitedto 3.5 percen of the balance in endowment account established for the Each account started with $2 million. The programm was terminated to expedite distributio n of the money to the Stowers spokeswoman Laurie Roberts said inan e-mail.
Robertss said the distributions equal the amount the universitie s would have received through the partnership adding that the parties continue to look for ways towork “I can tell you that each of the institutionw is interested in forming research partnershipx wherever possible,” she said. “These discussions are
million apiece from a affiliatew to endow a life sciencees chair ateach institution. UMKC Chancellofr Leo Morton saidthe money, which came from the nonprofit BioMef Valley Corp., will enhance the research relationship betweenh Stowers and the . KU Med probablu will use the money to recruita physician-scientistt working on cancer research, spokeswoman Amy Jordaj Wooden said in an e-mail. “Givehn how tight the state budget is,” she said, “we need philanthropic dollar s like this generous gift from the Stowers to keep our momentum going.” She said the BioMed Valley money also will let the schoo leverage state matching funds for distinguishe faculty.
The distribution from BioMed Valley, whichg was formed in 2003, came as the organizatiohn endeda research-partnership program with the two The program was intended to foster collaboration between Stowers and the two institutions in the areas of basic-celpl and molecular-biology research. Through the the annual financing for the schools was limitedto 3.5 percen of the balance in endowment account established for the Each account started with $2 million. The programm was terminated to expedite distributio n of the money to the Stowers spokeswoman Laurie Roberts said inan e-mail.
Robertss said the distributions equal the amount the universitie s would have received through the partnership adding that the parties continue to look for ways towork “I can tell you that each of the institutionw is interested in forming research partnershipx wherever possible,” she said. “These discussions are
Monday, 7 January 2013
Independent Community Bankers of America backs legislation to slap premium on giants - The Business Review (Albany):
zvonkovaleoqim.blogspot.com
Introduced by Rep. Luis Gutierreza (D-Ill.), the Bank Accountability and Risk Assessment Act woulsallow FDIC, in calculating premium charges a bank must pay, to consider an institution’s total assets – not just domestic deposits. The bill woulrd also require so-called “too-big-to-fail” banks to pay a systemic-risk premiumk to the FDIC becausw of the increased risk they pose to the financial The proposed changes have won the backing ofthe Washington, D.C.-basedr of America, which represents more than 8,000 smaller banke across the country. “Proportional regulation based on risk is long says ICBA President and CEOCamden R.
“It's only fair the largest financial institutionws pay anadditional premium.” Locap bankers are also behind the bill. “I’d definitely support the saysThomas Combs, CEO of Oxford-based Uniojn Bank & Trust. Calculating premiuj levels by usingtotal assets, he will capture a range of assets – dollarsx held in overseas accounts, for instance – that haven’t figurerd in the premium bills of larger banks.
Introduced by Rep. Luis Gutierreza (D-Ill.), the Bank Accountability and Risk Assessment Act woulsallow FDIC, in calculating premium charges a bank must pay, to consider an institution’s total assets – not just domestic deposits. The bill woulrd also require so-called “too-big-to-fail” banks to pay a systemic-risk premiumk to the FDIC becausw of the increased risk they pose to the financial The proposed changes have won the backing ofthe Washington, D.C.-basedr of America, which represents more than 8,000 smaller banke across the country. “Proportional regulation based on risk is long says ICBA President and CEOCamden R.
“It's only fair the largest financial institutionws pay anadditional premium.” Locap bankers are also behind the bill. “I’d definitely support the saysThomas Combs, CEO of Oxford-based Uniojn Bank & Trust. Calculating premiuj levels by usingtotal assets, he will capture a range of assets – dollarsx held in overseas accounts, for instance – that haven’t figurerd in the premium bills of larger banks.
Sunday, 6 January 2013
First Niagara pays back TARP funds - Washington Business Journal:
meaning-sarajevo.blogspot.com
The Pendleton-based company FNFG), the parent of First Niagara has redeemedall $184 million receiveds from the preferred stock purchased by the unde the Troubled Asset Relief Program (TARP). During its seven-month investment in Firsft Niagara, the government earned more than $4.8 million in preferred stocki dividends, exclusive of any value it may realizew related to the repurchase of the warrant byFirstt Niagara, said a company statement. In April, Firsf Niagara raised $380.4 million in a follow-on stoclk offering.
Those funds, coupled with anotherd $115 million raised in October putthe “company in a stronger capital position than that whichh existed prior to the government investmenyt in November,” officials said. First Niagara management also reaffirmee its belief that itis “well positioned to withstand extremew and unprecedented economic conditions, based on even more severe economid assumptions than those used by the in last month’ss Supervisory Capital Assessment Program, or stresse tests, of the nation’s largest
The Pendleton-based company FNFG), the parent of First Niagara has redeemedall $184 million receiveds from the preferred stock purchased by the unde the Troubled Asset Relief Program (TARP). During its seven-month investment in Firsft Niagara, the government earned more than $4.8 million in preferred stocki dividends, exclusive of any value it may realizew related to the repurchase of the warrant byFirstt Niagara, said a company statement. In April, Firsf Niagara raised $380.4 million in a follow-on stoclk offering.
Those funds, coupled with anotherd $115 million raised in October putthe “company in a stronger capital position than that whichh existed prior to the government investmenyt in November,” officials said. First Niagara management also reaffirmee its belief that itis “well positioned to withstand extremew and unprecedented economic conditions, based on even more severe economid assumptions than those used by the in last month’ss Supervisory Capital Assessment Program, or stresse tests, of the nation’s largest
Friday, 4 January 2013
Fontainebleau's Soffer caught by Lehman Bros. bankruptcy - Portland Business Journal:
8511ysu.blogspot.com
“When the retail division of the project lost access to fundinhgthrough Lehman, it was unable to repay the resort for its sharse of costs,” said Scott Baena, of Bilzimn Sumberg Baena Price Axelrod, who represents Fontainebleaiu Las Vegas LLC in the bankruptcy. “That put enormousd stress on theresort entity, and that was the beginninh of the problems.” Fontainebleau Las Vegas LLC and two of its affiliatess filed bankruptcy petitions in Miami late Tuesday. The Fontainebleauy Miami Beach is not included inthe filing.
also principal with Turnberry constructionn anddevelopment companies, has partial, personapl guarantees on portions of the retailp component of the Las Vegas project, but those portions are not in bankruptcy yet, Baena said. The complex is 70 percenyt completed. Since December 2008, Lehman refused to make any advancez underthe project’s $315 million construction loan, according to a motion to maintain cash managementy filed in the bankruptcy. After Lehman’s refusals, money stopped flowing through the retail entit y to the resort In March, other lenders pulled theird financing, and construction on the resortf stopped in May, Baena said.
The compang said in a news release that the decisioh to file Chapter 11 was the result of litigation with the other lenders on projec t aboutnearly $800 million in constructionj funding for the project. Other lenders includw , JPMorgan Chase Bank and Deutsche BankTrust Co. In the short term, the company is seeking to stabiliz e and protect the finisheed portion ofthe building, Baen said. “It’s no longer possible to downsizdthe building,” he said. “Ths 30 percent remaining construction is principallythe We’ve got a lovelh building waiting to be finished.
”
“When the retail division of the project lost access to fundinhgthrough Lehman, it was unable to repay the resort for its sharse of costs,” said Scott Baena, of Bilzimn Sumberg Baena Price Axelrod, who represents Fontainebleaiu Las Vegas LLC in the bankruptcy. “That put enormousd stress on theresort entity, and that was the beginninh of the problems.” Fontainebleau Las Vegas LLC and two of its affiliatess filed bankruptcy petitions in Miami late Tuesday. The Fontainebleauy Miami Beach is not included inthe filing.
also principal with Turnberry constructionn anddevelopment companies, has partial, personapl guarantees on portions of the retailp component of the Las Vegas project, but those portions are not in bankruptcy yet, Baena said. The complex is 70 percenyt completed. Since December 2008, Lehman refused to make any advancez underthe project’s $315 million construction loan, according to a motion to maintain cash managementy filed in the bankruptcy. After Lehman’s refusals, money stopped flowing through the retail entit y to the resort In March, other lenders pulled theird financing, and construction on the resortf stopped in May, Baena said.
The compang said in a news release that the decisioh to file Chapter 11 was the result of litigation with the other lenders on projec t aboutnearly $800 million in constructionj funding for the project. Other lenders includw , JPMorgan Chase Bank and Deutsche BankTrust Co. In the short term, the company is seeking to stabiliz e and protect the finisheed portion ofthe building, Baen said. “It’s no longer possible to downsizdthe building,” he said. “Ths 30 percent remaining construction is principallythe We’ve got a lovelh building waiting to be finished.
”
Thursday, 3 January 2013
Crist vetoes controversial insurance bill - The Business Journal of the Greater Triad Area:
awipekyhila.blogspot.com
“We really don’t have a choicwe but to continue with our plan to discontinud our property insurance coveragein Florida,” said State Farm spokesmah Michael Connolly. Crist cited concern s that signing HB 1171 could trigger significant rate increasesw and reverse efforts by state official and the Legislature to make the Florida market more Proponents of the legislation called itthe “Consumef Choice” bill. Crist said in a news released that the bill gavea “selecf group of property insurance companies” the powe r of choosing who would be offered the policy, allowin them to cherry-pick the best customers and dump policies with the greatestf risk.
In a June 16 letter to the governor, Jim president of State Farm FloridaInsurance Co., encouragef him to sign the bill, but made no promisez to stay if he did. Thompson even included a couplew of caveats toState Farm’s statement of non-commitment. “Ivf HB 1171 were to become law, and if the (Office of Insuranc Regulation) expediently administers the law in a manner consistenr with the legislative intent of its legislative sponsorsand supporters, Statr Farm would be willing to re-examine its Thompson wrote. The governor pointefd to the fact that the bill did not requirs that the select companies stay in Florida as a motivatinhg factor inhis decision.
“House Bill 1171 allowz certain insurers the ability to collectr unregulated insurance premiums and then leave the marketplacewith Florida’s hard-working families’ he said. State Farm Florida has been talking with statw regulators about its plan to leave In , the company asked to stop writinbg property coverage in the Sunshine Statde because it no longer could afford to do business Following the veto, the National Association of Insurance and Financial which represents the majority of Statwe Farm agents, released a statement through spokesman Bob Lotane.
“It nothing else, this moved debate on how to addres s our insurance challenges 180 degreez from wherewe were, and showed we have got to welcome and examine new ideas,” he said. Ed spokesman, said a hearing will be held July 15 to determinde the need for a formal heariny onState Farm’s plan to leav Florida. Click to read the plan. OIR’a biggest sticking point in the negotiations has been whether State Farm agentw would be able to sell policies othedr than its ownand Citizens. The initial agreement stateds that State Farm would provide a minimum of six monthse notice prior toexecuting non-renewals. State Farm policyholders, he have time to find otheer coverage.
“It was expected that nothing like that would begin to happe n until laterthis year,” Domansky said. “I suspecyt nothing would take place for anotherr sixmonths out.” Brad Ashwell, consumer advocatew for , which opposed the bill, expectd the deregulation of Florida’s insurance industryt will become a central issuw in the gubernatorial campaign. He said whomever wins the state’sx top political post will help determine how much traction deregulatioh has in the nextlegislative session. Ashwell added that his group is ecstatixc withthe governor’s decision. “We couldn’ be more happy,” he said.
“We are glad he stood up for BarneyBishop III, presiden and CEO of , criticized the governor’s veto, saying it wouldf force hundreds of thousandds of homeowners to switch to “thinly-financed” insurance companieas that will charge them as much if not more than theif current insurer. He gave no evidence for the But Ashwell said no one has evaluated how well private companies can weather astorm financially, so Bishop’s statement is inaccurate at He also pointed to the obvious, that Statre Farm is considering leavinvg of its own accord.
“This isn’t the governor’xs fault that State Farm is decidingto leave,” he “OIR’s role in protecting consumerws is not what is driving State Farm out of the [State Farm] has a choice.” commenderd the governor’s action saying it would have allowed certai larger insurance companies an unfair business advantage. It noter that the bill “would have further diminishecd affordable choices for Floridians and woul have eventually dumped more policies intothe state-run insuranced program Citizens.
"
“We really don’t have a choicwe but to continue with our plan to discontinud our property insurance coveragein Florida,” said State Farm spokesmah Michael Connolly. Crist cited concern s that signing HB 1171 could trigger significant rate increasesw and reverse efforts by state official and the Legislature to make the Florida market more Proponents of the legislation called itthe “Consumef Choice” bill. Crist said in a news released that the bill gavea “selecf group of property insurance companies” the powe r of choosing who would be offered the policy, allowin them to cherry-pick the best customers and dump policies with the greatestf risk.
In a June 16 letter to the governor, Jim president of State Farm FloridaInsurance Co., encouragef him to sign the bill, but made no promisez to stay if he did. Thompson even included a couplew of caveats toState Farm’s statement of non-commitment. “Ivf HB 1171 were to become law, and if the (Office of Insuranc Regulation) expediently administers the law in a manner consistenr with the legislative intent of its legislative sponsorsand supporters, Statr Farm would be willing to re-examine its Thompson wrote. The governor pointefd to the fact that the bill did not requirs that the select companies stay in Florida as a motivatinhg factor inhis decision.
“House Bill 1171 allowz certain insurers the ability to collectr unregulated insurance premiums and then leave the marketplacewith Florida’s hard-working families’ he said. State Farm Florida has been talking with statw regulators about its plan to leave In , the company asked to stop writinbg property coverage in the Sunshine Statde because it no longer could afford to do business Following the veto, the National Association of Insurance and Financial which represents the majority of Statwe Farm agents, released a statement through spokesman Bob Lotane.
“It nothing else, this moved debate on how to addres s our insurance challenges 180 degreez from wherewe were, and showed we have got to welcome and examine new ideas,” he said. Ed spokesman, said a hearing will be held July 15 to determinde the need for a formal heariny onState Farm’s plan to leav Florida. Click to read the plan. OIR’a biggest sticking point in the negotiations has been whether State Farm agentw would be able to sell policies othedr than its ownand Citizens. The initial agreement stateds that State Farm would provide a minimum of six monthse notice prior toexecuting non-renewals. State Farm policyholders, he have time to find otheer coverage.
“It was expected that nothing like that would begin to happe n until laterthis year,” Domansky said. “I suspecyt nothing would take place for anotherr sixmonths out.” Brad Ashwell, consumer advocatew for , which opposed the bill, expectd the deregulation of Florida’s insurance industryt will become a central issuw in the gubernatorial campaign. He said whomever wins the state’sx top political post will help determine how much traction deregulatioh has in the nextlegislative session. Ashwell added that his group is ecstatixc withthe governor’s decision. “We couldn’ be more happy,” he said.
“We are glad he stood up for BarneyBishop III, presiden and CEO of , criticized the governor’s veto, saying it wouldf force hundreds of thousandds of homeowners to switch to “thinly-financed” insurance companieas that will charge them as much if not more than theif current insurer. He gave no evidence for the But Ashwell said no one has evaluated how well private companies can weather astorm financially, so Bishop’s statement is inaccurate at He also pointed to the obvious, that Statre Farm is considering leavinvg of its own accord.
“This isn’t the governor’xs fault that State Farm is decidingto leave,” he “OIR’s role in protecting consumerws is not what is driving State Farm out of the [State Farm] has a choice.” commenderd the governor’s action saying it would have allowed certai larger insurance companies an unfair business advantage. It noter that the bill “would have further diminishecd affordable choices for Floridians and woul have eventually dumped more policies intothe state-run insuranced program Citizens.
"
Wednesday, 2 January 2013
Spectrum Properties turns over 16 CityView condos to Huntington in lieu of foreclosure - Business First of Columbus:
younkinesagugad1746.blogspot.com
Public records show an affiliate of developer agreed Marchu 6 to give the keys to 16 of the 48 condoxat CityView, 78 E. Chestnut St., in lieu of foreclosurw on its mortgage. Huntington has hirede CommercialOne Realtors, a commercial real estated brokerage, to sell the condos. Commercia One partner Steve Holzer said he likely will hire a residentiall sales group to marketthe residences. “We’re stillp getting our game plan together,” he Spectrum partners Jack Hoopews and Bill Shelby declinedto comment. Spectrumn built the first office-to-residential projecgt in 2003 underthe city’s push to creats more housing downtown.
It took the developer just a year to sell the 60 unitx in its project at110 N. Thired St., formerly dubbed Connextions Lofts. The company then convertedd offices at121 N. Front St. into the 55-uniy Eclextion Lofts. A Spectrum affiliate then boughtthe six-story, 86,000-square-foo building on Chestnut Street from for $1.9 millionh in 2004. It financed the acquisition and constructionjfor $7.56 million. Spectrum sold 17 condos througbh December 2007 for acombinee $4.2 million, according to public records. It sold 15 more condosa last year foranother $4.2 including a ground-level commercial unit for $450,000. Sale prices rangedx from $189,900 to $534,500. A dozen sold for more than $250,000.
Holzer said three of the 16 unitsa that Huntington controls have renters occupying Records show another Spectrum affiliate bought two units for A principal with the Columbus consulting firm VWB Researcu said several developers downtown have resorteds to renting until themarket improves. “Those developersz are trying to find a use for the saidRob Vogt. “I’m not sure the bank will be able to do anybetterd (with CityView) than a developer who knows the property.” Figurew compiled by VWB Research show 67 new condos were sold in the centrall city last year, well off the record pace of 231 in 2006.
Sincer 2003, developers have sold 624 condos in the heart ofthe Spectrum’s construction loan had an original due date of January 2008, according to public records. That loan was paid down as condoxwere sold. Huntington extended a separat e $1 million loan in February 2008 that wasdue Dec. 31. The most recentf condo sale in the buildingh took place in late sellingfor $347,800. A downtown residentiaol sales specialist said Shelby andHoopee “must have run out of time” on the CityVies loans. “They got into the same situatiob aseveryone else,” said Real Living HER agengt Jim Meyer.
“They were selling through (condos) OK unti l the real estate market started to reallyuslow down.” Meyer said lowering the price is a key to movinh the remaining units. “They just need to go in and slasythe prices,” Meyer said. “You need to figure out your bottom line and get out of Holzer said Commercial One will concentratd on managing the building while finalizing asales strategy. CityViesw may get a few agents to markey the remaining units rather than give one agent all the condos to he said. “We haven’t made a decision on who to he said.
“I’m trying to put togethert two or three agents who know thatproduct
Public records show an affiliate of developer agreed Marchu 6 to give the keys to 16 of the 48 condoxat CityView, 78 E. Chestnut St., in lieu of foreclosurw on its mortgage. Huntington has hirede CommercialOne Realtors, a commercial real estated brokerage, to sell the condos. Commercia One partner Steve Holzer said he likely will hire a residentiall sales group to marketthe residences. “We’re stillp getting our game plan together,” he Spectrum partners Jack Hoopews and Bill Shelby declinedto comment. Spectrumn built the first office-to-residential projecgt in 2003 underthe city’s push to creats more housing downtown.
It took the developer just a year to sell the 60 unitx in its project at110 N. Thired St., formerly dubbed Connextions Lofts. The company then convertedd offices at121 N. Front St. into the 55-uniy Eclextion Lofts. A Spectrum affiliate then boughtthe six-story, 86,000-square-foo building on Chestnut Street from for $1.9 millionh in 2004. It financed the acquisition and constructionjfor $7.56 million. Spectrum sold 17 condos througbh December 2007 for acombinee $4.2 million, according to public records. It sold 15 more condosa last year foranother $4.2 including a ground-level commercial unit for $450,000. Sale prices rangedx from $189,900 to $534,500. A dozen sold for more than $250,000.
Holzer said three of the 16 unitsa that Huntington controls have renters occupying Records show another Spectrum affiliate bought two units for A principal with the Columbus consulting firm VWB Researcu said several developers downtown have resorteds to renting until themarket improves. “Those developersz are trying to find a use for the saidRob Vogt. “I’m not sure the bank will be able to do anybetterd (with CityView) than a developer who knows the property.” Figurew compiled by VWB Research show 67 new condos were sold in the centrall city last year, well off the record pace of 231 in 2006.
Sincer 2003, developers have sold 624 condos in the heart ofthe Spectrum’s construction loan had an original due date of January 2008, according to public records. That loan was paid down as condoxwere sold. Huntington extended a separat e $1 million loan in February 2008 that wasdue Dec. 31. The most recentf condo sale in the buildingh took place in late sellingfor $347,800. A downtown residentiaol sales specialist said Shelby andHoopee “must have run out of time” on the CityVies loans. “They got into the same situatiob aseveryone else,” said Real Living HER agengt Jim Meyer.
“They were selling through (condos) OK unti l the real estate market started to reallyuslow down.” Meyer said lowering the price is a key to movinh the remaining units. “They just need to go in and slasythe prices,” Meyer said. “You need to figure out your bottom line and get out of Holzer said Commercial One will concentratd on managing the building while finalizing asales strategy. CityViesw may get a few agents to markey the remaining units rather than give one agent all the condos to he said. “We haven’t made a decision on who to he said.
“I’m trying to put togethert two or three agents who know thatproduct
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