Review
February 6 – 12
Music Bankruptcy: Tower Records and closely held parent MTS Inc. filed for bankruptcy. Under the so-called prepackaged bankruptcy recovery plan, filed in U.S. Bankruptcy Court in Delaware, bondholders owed about $110 million agreed to be paid $30 million of new senior notes and 85 percent of Tower shares. Tower will borrow as much as $100 million from CIT Group/Business Credit Inc. to help fund operations during the reorganization. Sacramento-based Tower, which has a major presence in Los Angeles, said that the company might emerge from bankruptcy within 45 days.
Missing Deadline: Fabian Nunez, who was inaugurated as state Assembly speaker, said lawmakers will not meet Gov. Arnold Schwarzenegger’s March 1 deadline to pass an overhaul of the worker-compensation insurance system. The governor has warned that if reform legislation weren’t passed by that time he would begin gathering signatures to put an initiative to the voters in November. However, state lawmakers were making inroads last week towards a reform package that could forestall Schwarzenegger’s ballot effort.
Gas Update: L.A. prices continued their sharp climb. For the week ended Feb. 9, a survey by the Energy Information Administration shows that the average price of a gallon of self-serve regular was $1.873, up from $1.790 the week before and $1.596 for the week ended Dec. 29. Statewide, the average per-gallon price was $1.821 last week, from $1.753 the week before.
Earnings Results: Hughes Electronics Corp. reported a fourth-quarter net loss of $309.5 million, compared with net income of $112.6 million for the like period a year ago. Revenue for the parent of DirecTV rose to $2.95 billion from $2.45 billion. News Corp. bought a controlling 34 percent stake in Hughes in December. Computer Sciences Corp. reported third-quarter net income of $128.4 million, compared with $105.7 million for the like period a year earlier. Revenue for the El Segundo-based data services company rose 29 percent, to $3.62 billion. News Corp., parent of the Fox television networks and Twentieth Century Fox, reported second-quarter net income of $361 million, compared with $239 million for the like period a year earlier. Revenue for the Rupert Murdoch-controlled company rose 19 percent, to $5.58 billion. Health Net Inc. reported fourth-quarter net income of $90.3 million, compared with $45.2 million for the like period a year earlier. Revenue for the Woodland Hills-based health insurance company rose 5 percent, to $2.78 billion.
New COO: Tenet Healthcare Corp. named Reynold J. Jennings its new chief operating officer. Jennings, who was promoted from president of the company’s eastern division, will be charged with running the 69 hospitals Tenet intends to keep after selling off 27 other facilities.
Home Prices: The climb continues. L.A. County’s median home price reached $352,000 in January, 26.6 percent higher than for the like period a year earlier. A total of 8,030 houses and condos were sold, down 2.5 percent from last year. The decline in sales is largely the result of limited supply.
Gemstar Case: A U.S. appeals court revived Gemstar-TV Guide International Inc.’s patent lawsuit against EchoStar Communications Corp. and makers of set-top boxes. The court ruled that a federal judge in North Carolina incorrectly interpreted patents related to on-screen TV guides. The ruling came on the same day Gemstar said it settled shareholder lawsuits for $67.5 million.
Preview
February 16 – 22
President’s Day: Banks, financial markets and the government are shut down on Monday (16th) for President’s Day, which has become the convenient way to celebrate the birthdays of George Washington (Feb. 22) and Abraham Lincoln (12th) and wind up with a three-day weekend. Many companies take the day off as well.
Governors Reflect: The public affairs program “California Connected” will manage to get four of the state’s previous governors into a room for a panel discussion titled “Can California Be Governed,” as well as an interview with the current governor, Arnold Schwarzenegger. The show will air on Friday (19th) at 10 p.m. on 10 of California’s PBS stations, including KCET.
Economic Reports: Tuesday (17th): January industrial production and capacity utilization. Wednesday (18th): January housing starts. Thursday (19th): January producer price index and leading economic indicators. Friday (20th): January consumer price index.
Awards Roundup: A week before the Oscars, it’s the 56th Writer’s Guild of America Awards on Saturday (21st) at the Century Plaza Hotel and on Sunday (22nd), the 10th Screen Actors Guild awards at the Shrine Auditorium (and aired on cable network TNT).
Sports Beat: The Lakers finally make it back to Staples Center this week as they play Portland on Tuesday (17th) and Philadelphia on Friday (20th). The Clippers are home on Thursday (19th) against Boston. In college hoops, UCLA takes on California on Thursday (19th) and Stanford on Saturday (21st). USC faces Stanford on Thursday and California on Saturday. The Kings are home on Wednesday (18th) against Dallas and Saturday (21st) against Columbus. The Avengers are home on Sunday (22nd) against San Jose. Also this week (19th-22nd) it’s the Nissan Open from Riviera Country Club, with Tiger Woods expected to play. Mike Weir is defending champion.
Rudy + Caspar: As part of the Distinguished Speaker Series, former New York Mayor Rudolph Giuliani appears at Pasadena Civic Auditorium on Wednesday (18th) at 8 p.m. For information: 626-449-7360. Caspar Weinberger, former Defense Secretary and currently chairman of Forbes Magazine, addresses the Los Angeles World Affairs Council at a dinner meeting on Thursday (19th) at the Beverly Hilton. For information: 213-628-2333.
Rack Rules: On Wednesday (18th), the L.A. City Council’s Public Works Committee will take up an ordinance regulating newsracks. After months of negotiations between news organizations and community activists, the latest proposal calls for a uniform color and size for all newsracks and allows for a maximum of four in any specific location.
