BRIEFCASE.Byline: - Staff and Wire Reports WellPoint chair will still get perks THOUSAND OAKS - While no longer on the company payroll, WellPoint Inc. Chairman Leonard Schaffer's compensation package will include use of an office and clerical staff for at least another six years, according to documents filed Friday with the Securities and Exchange Commission. The package is valued at $186,000 in rent, $6,000 for parking annually. Additionally, the company will spend $240,000 to set up the office. Toys `R' Us rating lowered by Fitch NEWARK, N.J. - Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. downgraded $1.8 billion of debt held by Toys ``R'' Us Inc. on Friday, a day after the nation's second-largest toy seller was acquired by a private consortium for $6.6 billion. Fitch lowered the rating for Toys ``R'' Us senior unsecured notes to CCC CCC A very speculative grade assigned to a debt obligation by a rating agency. Such a rating indicates default or considerable doubt that interest will be paid or principal repaid. Also called Caa. , six steps down from BB, sending it well into the speculative range. Fitch said the outlook for Toys ``R'' Us is negative, asserting that the buyout has left the company with about $6.1 billion of debt that is ahead of the senior unsecured notes for repayment in case of default. Although the ratings agency expects Toys ``R'' Us to sell some stores and convert others to its more successful Babies ``R'' Us stores, it does not appear the sales would benefit the holders of the senior unsecured notes, the agency said. Fitch added Toys ``R'' Us ``has not been able to gain sales traction in its U.S. toy stores despite completing a major remodeling remodeling /re·mod·el·ing/ (re-mod´el-ing) reorganization or renovation of an old structure. bone remodeling program in 2002 and adding exclusive merchandise to its offerings.'' Proposed airline merger approved WASHINGTON - A federal panel on Friday approved a bid by US Airways Group US Airways Group Inc. NYSE: LCC is the Tempe, Arizona-based airline holding company that operates US Airways, US Airways Express and America West Airlines. It also operates additional companies that provide associated services. Inc. and America West Holdings America West Holdings Corporation is an Arizona-based company owned by US Airways Group Inc. Its primary holding is America West Airlines. America West's corporate offices in Tempe are housed in one of the first commercial high-rise buildings constructed in the downtown Corp. to merge, clearing a hurdle to the companies' goal of combining to compete against lower-cost rivals. The federal Air Transportation Stabilization Board The Air Transportation Stabilization Board is an office of United States Department of the Treasury set up after the September 11, 2001 attacks to offer loans to troubled US airlines. External links
US Airways Group, based in Arlington, Va., is the nation's seventh largest carrier. America West of Tempe, Ariz., is the eighth largest. The companies announced their intention to merge in May. The deal, which has gotten a green light from the Justice Department, still must be cleared by the U.S. Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. in Alexandria, Va. |
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