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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?

To: Jim Willie CB who wrote (11301)	1/8/2003 3:04:40 PM
From: Sully-	Read Replies (1) \| Respond to of 89467

15:03 ET Consumer Credit fell $2.2 bln in November vs +$3.9 bln consensus : Consumer Credit actually contracted in November after a weak October gain. Interestingly, consumption was reasonably strong in both months, so the implications of this number are ambiguous. It could be read as indicating a pullback in consumers is underway, though spending numbers don't support this. Or it could be read as an indication that higher incomes are allowing for more spending, rather than higher debt. Or the numbers could just be wrong (that wouldn't be a first). There are too many contradictory messages in the data to know what to make of this number.

To: Jim Willie CB who wrote (11301)	1/8/2003 3:33:26 PM
From: lurqer	Read Replies (1) \| Respond to of 89467

I enjoy an occasional vituperative exchange Say it isn't so! [As if I didn't already know.] <g> lurqer

To: Jim Willie CB who wrote (11301)	1/9/2003 12:36:15 AM
From: stockman_scott	Read Replies (1) \| Respond to of 89467

United pays outside advisers millions By Marilyn Adams, USA TODAY As United Airlines' pilots brace for 29% pay cuts, their company is poised to spend millions for legal and financial services from 11 firms helping chart its recovery. UAL, United's parent company, has retained five law firms and six other firms whose specialties include investment banking, corporate turnarounds, accounting and public relations. A bankruptcy judge approved the hiring of most of UAL's advisers last week, but two firms' proposed fees — which alone run into millions of dollars — are being challenged by unsecured creditors. A hearing is set for Jan. 15. Company officials say the advisers' help is critical. Lenders threaten to withhold financing needed to keep UAL flying unless it meets specific cash-flow targets starting in February. UAL is seeking $2.4 billion a year in labor savings and billions more from suppliers and creditors. United's pilots union said Tuesday that the pay cut, approved by 92% of those voting, saves UAL $40 million a month immediately. "We're working with bankruptcy experts outside the company to assure United emerges successfully as a strong competitor," says Chief Financial Officer Jake Brace. Court records show that advice doesn't come cheap: Management consultant McKinsey & Co., tapped to help devise a turnaround plan, is seeking $1 million a month plus expenses. Restructuring expert Rothschild expects a $15 million fee — in addition to a $225,000 monthly fee — to help UAL complete a reorganization plan. Huron Consulting Group, another restructuring specialist, received a $500,000 retainer. McKinsey's "flat fee of $1 million a month ... may not be justified," the creditors say in a filing. They want to know whether it's duplicating work by United's management or other advisers. McKinsey declined comment. The creditors call Rothschild's $15 million fee "a guaranteed flat fee payment unrelated to any benefits Rothschild actually confers." Rothschild declined comment. It's not unusual for large companies in Chapter 11 to hire high-priced advisers. Kmart reports professional fees paid or accrued in its case totaled almost $85 million from January through Nov. 27. Bankruptcy experts say UAL needs the best advice available. "They want the best and the brightest to drop everything and concentrate on this," says Boston corporate bankruptcy lawyer Jon Schneider. "If it really works, $50 million to $100 million in professional fees is worth it." Some employees being pressed for sacrifices disagree. "It's ludicrous for United to ask for so much from workers when they are willing to pay excessive rates to outside consultants," says George Gulliford, a furloughed United mechanic. usatoday.com