NEW FACTORY: Tesla Motors Inc., a Silicon Valley manufacturer of high-end electric cars, said it will build its new all-electric sedan at a yet-to-be-announced location in Los Angeles County. Chief Executive Elon Musk made the announcement when he unveiled Tesla’s all-electric four-door Model S sedan at an event last week in Hawthorne. The factory could create hundreds of jobs in the area.
NEW NAME: A consortium of private investors completed their acquisition of banking operations of failed Pasadena thrift IndyMac Inc. and have reopened it as OneWest Bank FSB. The group, led by Steven Mnuchin of Dune Capital Management LP, acquired IndyMac’s retail banking assets from the Federal Deposit Insurance Corp., which took over the bank in July after depositors made a run on the bank. OneWest will operate as a regional bank, with 33 branches mostly in the Los Angeles area, and focus on deposits and mortgage lending in Southern California.
FINANCING TROUBLE: International Lease Finance Corp., the Los Angeles aircraft leasing unit of troubled American International Group, disclosed in a regulatory filing that it may need additional financing from its cash-strapped parent or a third party to meet its obligations. ILFC, which AIG is hoping to sell to raise funds, said it was seeking secured financing to pay contractual obligations through the end of April.
LIQUIDITY WOES: Federal regulators placed Western Corporate Federal Credit Union in San Dimas into conservatorship due to liquidity concerns. The National Credit Union Administration appointed itself conservator of WesCorp, which has been contending with substantial paper losses on investments in mortgage-backed securities. WesCorp, which has 1,100 retail credit union members and assets of more than $23 billion, reported unrealized losses of $2.6 billion in its investment portfolio in January.
FILM INCENTIVES: The Los Angeles City Council unanimously approved a package of incentives aimed keeping and attracting film production. Council President Eric Garcetti had introduced the package last year after producers of the hit television comedy “Ugly Betty” said they were moving production to New York in part because of the high cost of filming in Los Angeles. The package includes measures to reduce parking costs for film crews and help install power modules at often-used film locations.
MERUELO DOWN: Downtown L.A. landlord Meruelo Maddux Properties LLC filed for Chapter 11 bankruptcy protection. The Los Angeles developer of commercial and multi-family residential properties announced earlier this month that it had stopped making payments on real estate loans of $266 million, and said independent auditors were likely to issue a “going concern” opinion questioning the company’s ability to remain in business. The company, which is downtown L.A.’s largest landowner, excluded its subsidiary overseeing construction of the 35-story Ninth Street residential tower project from the filing.
MERGER UPDATE: Image Entertainment Inc. agreed to give Nyx Acquisitions Inc. until April 6 to finalize its $60.2 million purchase of the company, but the Chatsworth home entertainment company demanded its prospective buyer turn over $1 million from a trust fund for the deal to compensate for repeated delays. Nyx, a San Francisco affiliate of Q-Black LLC, has had repeated problems finalizing financing for the deal, which is valued at $100 million including assumption of debt. Under the revised merger agreement, Nyx increased the business interruption fee to $2.5 million, and could extend the closing date by adding more money to the trust fund.
CRUNCH EASED: CB Richard Ellis Group Inc., which has been hurt by the dismal real estate market and prolonged credit crunch, has renegotiated its debt with dozens of lenders. As a result, the Los Angeles commercial real estate services giant will not trigger violation of its loan terms. The violation could have prompted lenders to demand full payment and force the company into an untenable financial situation. The company reduced its outstanding debt with a voluntary prepayment of $105 million.
NFL DEAL: The National Football League extended its deal with DirecTV Group Inc. through 2014. The deal gives the El Segundo satellite television provider exclusive broadcast rights to out-of-market Sunday afternoon football games. DirecTV has offered NFL Sunday Ticket for 15 years and uses it as a key marketing tool. While financial terms were not announced, media reports said that the agreement will be worth $4 billion to the league over the four years of the contract.
RESTATEMENT: Joe’s Jeans Inc. said it will restate its first three financial quarters from last year and delay filing its annual report so the company can revise the accounting treatment of its 2007 acquisition of JD Holdings Inc. The revisions will lower the company’s earnings for those quarters. The Commerce designer-denim maker, formerly a private label apparel maker known as Innovo Group, purchased rights to the Joe’s Jeans brand from founder Joseph Dahan in October 2007. The restatements are necessary because the Securities and Exchange Commission said contingent payments promised to Dahan, who is now creative director, should be considered compensation, not part of the purchase price.
EARNINGS: Unico American Corp. reported fourth quarter net income of $2.1 million, nearly 17 percent higher than a year ago. Revenue fell 9.7 percent to $11.1 million. CKE Restaurants Inc. reported fourth quarter net income of $2.6 million, 2,600 percent higher than a year ago. Revenue fell 3 percent to $327 million. Ameron International Corp. reported first quarter net income of $3.8 million, 60 percent lower than a year ago. Revenue fell 2.5 percent to $146 million.
