LATEST ARTICLES
- (
) 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>> - (
) Boss defends home loan 'formula'
Rudco CEO Rudi Visagie believes his "simple" business formula is a winner for consumers and has big banks and financial services brokers running scared. The National Credit Act regulates maximum interest rates and initiation fees, but no minimums, Visagie said in defence of his six percent interest rate on home loans. Visagie said Rudco was complying with the act by offering a maximum initiation fee of R150, plus 10 percent of the agreement in excess of R1 000, but limited to R1 140 (including VAT). A further proviso of the act is that the initiation fee may not exceed 15 percent of the principal debt. Rudco's "management fee" of R750 had been converted to an interest rate of 17 percent, said Visagie. Before June 1, when the act came into force, this was how Rudco calculated a R100 000 "debt consolidation" - what the act refers to as a personal loan: Capital outlay of R100 000 (this was used to repay people's debts, Visagie stressed, and no money was paid directly to clients); 20-year (240 month) repayment period; R750 management fee. 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>>
- (
) People have lost faith in the government
Every day for several years now, the Pacific Daily News polls the people with a question. The questions are mostly pertaining to the leadership, management and performance of the government of Guam's officials. In my observation of the polls, the majority of the people who provide their opinion are decrying the ineptness of the officials. The socioeconomic and environmental conditions show that GovGuam key officials are simply unable or don't want to do the right thing.The Sept. 20 question was: "Which bond borrowing proposal do you favor?" The choices were: $90 million by Sen. Eddie Calvo; $250 million by Sen. David Shimizu, $250 million by Gov. Felix Camacho; and I do not support any of these proposals."
. More>>