Growth in Sales for Holiday Period Weakest in Years
After examining sales figures from the last hours before Christmas, experts yesterday declared this year's holiday season the worst in many years, the New York Times reported. Michael P. Niemira, a retail analyst in New York for Bank of Tokyo- Mitsubishi, said the growth in United States retail sales for the months of November and December, at 1.5 percent, was the lowest it had been since at least 1970, when the bank began keeping track. A spokesman for the National Retail Federation, one of the industry's more upbeat forecasters, said its original estimate of 4 percent growth for December would probably shrink to 3.5 percent, reported the newspaper.
Wal-Mart Stores, the nation's biggest retailer, announced yesterday that it was lowering its estimates of December sales growth in stores open at least a year. The company said its sales would increase by just 2 percent to 3 percent this month instead of the 3 percent to 5 percent it had forecast earlier. Last year, Wal-Mart posted December sales growth of 8.1 percent, reported the Times. On Tuesday, Federated Department Stores said its sales in the third week of December fell below expectations, and it warned that sales for November and December would be less than anticipated. The company, which owns Bloomingdale's and Macy's, had predicted a drop of 2.5 percent, compared with the same period last year. Worry about the economy and about an impending war with Iraq and new terrorist attacks kept many shoppers from buying, even with deep discounts on many items, the New York Times reported.
Adelphia Posts Wider Loss
Adelphia Communications Corp.'s net loss widened in November from October, according to a monthly operating report filed with the U.S. Bankruptcy Court in Manhattan, Dow Jones reported. The cable operator said its loss for the month was $111.5 million, or 44 cents a share, compared with a loss of $104.6 million, or 42 cents a share, for October. Revenue fell to $281.3 million from $282.2 million, the report said. Adelphia said it had $426.7 million in cash and cash equivalents as of Nov. 30, down from $471.2 million at the beginning of the month. It also had $300 million available under a $1.5 billion debtor-in-possession loan facility, with $1 billion available subject to certain conditions, reported the newswire. Adelphia has been operating under chapter 11 bankruptcy protection since late June.
UNITED AIRLINES
Creditors Oppose Final OK for United Airlines' DIP Loans
A number of parties earlier this week objected to final approval of the $1.5 billion debtor-in-possession financing agreement for UAL Corp.'s United Airlines, Dow Jones reported. State Street Bank and Trust Co., an indenture trustee or owner trustee under about 300 separate aircraft financing transactions that represent nearly $9 billion in obligations, filed an objection on Monday that said United Airlines had yet to make available to the bank any drafts or a final version of the revolving credit and term-loan guarantee agreement. The U.S. Bankruptcy Court in Chicago is scheduled to consider final approval of the DIP financing at a hearing next Monday, reported the newswire.
UAL to Delay Court Motion Seeking to End Labor Contracts
UAL Corp., parent of United Airlines, said it will delay until today filing a motion in bankruptcy court that would ask a bankruptcy court to consider dissolving labor contracts, reported Bloomberg News. UAL said in a statement that it decided to delay filing the motion in response to requests from its labor unions and in light of ongoing discussions with them.
American Stock Exchange Halts Trading of Seven Seas
Seven Seas Petroleum Inc. said the American Stock Exchange halted trading of the company's shares at 7 cents on Tuesday in response to an involuntary bankruptcy petition, Dow Jones reported. In a press release yesterday, Seven Seas, an oil and gas exploration and production company, said it won't appeal the exchange's decision to delist and expects a delisting today. On Monday, the company said a petition was filed by the holders of a majority of Seven Seas' $110 million senior subordinated notes. The company is in default under the notes because it missed a $6.9 million interest payment due on Nov. 15.
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