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Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: ChinuSFO who wrote (91685)	3/28/2011 7:34:20 PM
From: tejek	Respond to of 149317

This is just plain sad. Damn Wall Street.....they would screw their mothers if there was a percentage in it for them. Harry & David Bankruptcy Filing Creates Ripple Effects By JOEL MILLMAN MEDFORD, Ore.—The bankruptcy-court filing of Harry & David Holdings Inc., the iconic fruit-basket company that is the region's biggest private employer, is raising worries about the local economy and anger at Wall Street. Harry & David filed for bankruptcy-court protection in Delaware on Monday, after struggling under the weight of $198 million in debt it had left over from a 2004 leveraged buyout by Wasserstein & Co. and other borrowing. "We're all holding our breath, hoping for the best. A lot of us do a lot of business with them," said Mike Naumes, president of Naumes Inc., one of three large pear growers—Harry & David and Associated Fruit Co. are the others—that dominate orchard production in southwestern Oregon's Rogue River Valley. The failure of the 77-year-old company is raising anger locally at Wall Street, which is seen as recklessly borrowing to do the buyout without regard for the local economy, workers or the business. "Buying a successful company like Harry & David, and crushing it under millions in bonding debt required to pay for the purchase may be known as brilliant financial maneuvering on Wall Street," said state representative Dennis Richardson, whose district includes the Rogue Valley. Mr. Richardson added: "Oregon citizens have a different name for it." Harry & David has struggled through the recession, and weak Christmas holiday results left it unable to borrow money under the terms of its revolving credit line. On March 1, the company skipped a $7 million interest payment owed to bondholders. In a regulatory filing then, the company raised doubt about its ability to continue as a going concern. The company in a statement said normal operations would continue. "We believe that entering into this agreement provides the best opportunity for Harry & David to restructure its balance sheet," said Kay Hong, chief restructuring officer and interim chief executive officer. "Harry & David is an iconic brand, and we believe this is an important first step to position the business for long-term profitable growth." A Harry & David spokeswoman added, "There are no broad-scale layoffs planned at this time" and said that while the company would review all areas of its operations, "there are no additional store closures at this time." Rival fruit growers like Naumes and Associated Fruit benefit from Harry & David's clout. Its critical sales mass draws enough truckers to the valley to keep other producers' freight costs manageable; its strength helps them lobby state and local governments. Mr. Naumes said his greatest concern now is that the high-end "set out" fruit that Harry & David used to buy to fill gift baskets will be too expensive for the company. He worries the company may now look to sell more of its own output to the chain stores and wholesalers that are Naumes's main customers. "The market for red Comice [pears] is small, and they've got the tonnage," Mr. Naumes said. If Harry & David scales back its gift business and sells more fruit to brokers, "that could really hurt us." Harry & David reached a "prearranged" bankruptcy deal with creditors under which the company would convert its bond debt to equity. The company also plans to raise additional capital through a new $55 million stock sale that would finance its bankruptcy exit. Wasserstein, the private-equity firm founded by Wall Street deal maker Bruce Wasserstein, who died in 2009, saw its equity in the company wiped out in the bankruptcy. But the firm has already turned a profit on the deal. Wasserstein invested $82 million in the 2004 buyout. But after a strong 2004 Christmas season, it borrowed another $100 million on top of the amount it borrowed to do the deal and used the money to pay itself a dividend. A person familiar with the matter said Wasserstein was also among the company's biggest bondholders before the bankruptcy and will remain among the largest shareholders going forward, though its board representation and management fees will go down. Also, Harry & David will terminate its defined benefit pension plan, according to the company's bankruptcy filing, which the company valued at $19 million at June 26. The ripple effect of Harry & David's woes has begun to spread beyond Medford. Besides cutting more than a hundred local jobs in the past two years, the company has closed outlet stores across the country and cut back relations with some suppliers. Last Christmas, Harry & David failed to open its busy Eugene, Ore., call center, which had provided holiday work for generations of students at nearby University of Oregon. online.wsj.com

To: ChinuSFO who wrote (91685)	3/28/2011 10:02:50 PM
From: koan	Read Replies (3) \| Respond to of 149317

great speech by Obama.

To: ChinuSFO who wrote (91685)	3/28/2011 10:04:58 PM
From: SiouxPal	Respond to of 149317

I will not abandon my president. That will most likely not change. Period. Regards. I am Sioux

To: ChinuSFO who wrote (91685)	3/28/2011 10:10:46 PM
From: SiouxPal	Respond to of 149317

You are a good moderator.