Packers interested in big Canada hog farm hurt by feed costs

Fri Oct 12, 2012 2:32pm EDT

* Maple Leaf Foods, Olymel eyeing Big Sky - receiver

* Puratone court protection extended; buyers interested

By Rod Nickel

WINNIPEG, Manitoba, Oct 12 (Reuters) - Two Canadian pork processors are among those expressing interest in Canada's second-biggest hog producer, Big Sky Farms, which is looking for new ownership after soaring feed costs left it unable to pay its bills.

Big Sky, which produces about 1 million pigs per year and is based near Humboldt, Saskatchewan, entered receivership in early September. Manitoba-based hog producer Puratone Corporation is also up for sale, after entering court protection from creditors last month.

Both Toronto-based Maple Leaf Foods and Quebec-based Olymel L.P. are sizing up Big Sky, said Kevin Brennan, senior vice-president at Ernst & Young, the receiver for Big Sky. Big Sky is already a supplier to those companies' hog plants.

Some packers outside Canada are also interested, he said.

"There's a great deal of interest in terms of buying Big Sky," said Brennan, adding that Big Sky is for sale as a whole, not in pieces.

"They take a long-term view of the industry itself, and if there's a concentration of producers going out of business it provides opportunity for others to grow."

Maple Leaf spokesman Dave Bauer said it's premature to comment on any specific opportunities the company may have.

"We are evaluating several options that would secure our longer term hog supply," he said.

An Olymel spokesman could not be immediately reached.

A severe drought in the United States has decimated crops this year, which has led to higher costs for grains used to feed pigs. Rising feed costs have prompted some farmers to liquidate their herds, putting short-term pressure on hog prices and making losses worse for the remaining North American hog farmers.

Ernst & Young will ask a court next week to approve a sales process for Big Sky.

Saskatchewan Agriculture Minister Lyle Stewart said Big Sky should be an attractive acquisition for "major operators" in Canada looking to expand.

"I would expect it to be sold off more or less in one piece. It's too valuable an asset" to shut down, he said.

Big Sky owes about C$69 million ($70.4 million) to four secured creditors: lenders Bank of Nova Scotia (C$26 million), Bank of Montreal (C$16.7 million), National Bank of Canada (C$16.2 million) and Farm Credit Canada (C$9.8 million).

MANITOBA'S PURATONE ATTRACTS INTEREST

Despite the hog industry's problems, there are parties interested in buying Puratone as a whole, said court-appointed monitor Brent Warga of Deloitte.

Two parties filed expressions of interest with the monitor in buying all or most of the company, and a third group has also expressed interest. All were rejected, but the parties were invited to make new offers by mid-October, with the intent of a sale by Oct. 22, according to court documents.

A Manitoba court this week extended Puratone's protection from creditors until Nov. 2.

Puratone, which sells about 500,000 hogs annually, owes a total of C$86 million to three secured creditors: lenders Bank of Montreal (C$40.9 million) Farm Credit Canada (C$40.3 million) and the Manitoba government's farm insurance and lending corporation (C$5 million).

Both Big Sky and Puratone continue to feed pigs and pay staff as usual, and have not liquidated their herds.

Canada is the world's third-largest pork exporter and the biggest live hog exporter.

• Link this
• Share this
• Digg this
• Email
• Reprints

16.47 | 0 komentar | Read More

Bankrupt Solyndra seeks $1.5 bln in damages from Chinese peers

Fri Oct 12, 2012 9:38pm EDT

Oct 12 (Reuters) - Bankrupt solar firm Solyndra has filed a lawsuit against three U.S.-listed Chinese solar players, including Suntech Power Holdings Co, seeking $1.5 billion in compensation due to monopolization by these firms, according to court documents filed on Thursday.

The lawsuit was filed against Suntech, Trina Solar Ltd and Yingli Green Energy Holding Co claiming that the trio's panel prices moved in tandem - falling 75 percent in four years in the U.S.

Solyndra, which claims in the lawsuit that the trio were involved in predatory pricing and price fixing, filed for bankruptcy a year ago as it could no longer compete with plunging prices of solar panels imported from China.

U.S. solar companies launched a complaint last year alleging protectionism from Beijing for Chinese panel makers, sparking trade disputes between the two countries.

As a result of the ongoing tryst, the U.S. slapped steep final duties on billions of dollars of solar energy products from China earlier this week.

Defendants - Suntech, Trina and Yingli - came to the U.S. and raised money from the stock market and deployed that capital to "destroy" American solar manufacturers, said Solyndra in the suit filed in a Northern California district court.

The three Chinese companies named as defendants were not available for comment outside of business hours.

Solyndra has sold everything from its remaining inventory and assembly equipment to office computers in a bid to raise money to repay creditors.

The Obama administration came under fire for missing signs of financial trouble at the California-based Solyndra and approving nearly $535 million in loans in a bid to spark a clean energy industry and create jobs through stimulus spending.

Last year, executives from bankrupt Solyndra LLC testified that a flood of cheap Chinese solar panels kept it from realizing $1.2 billion in contracts it announced in 2008.

The lawsuit is Solyndra, LLC v. Suntech Power Holdings Co Ltd et al, U.S. District Court, Northern District of California, No. 12-05272.

• Link this
• Share this
• Digg this
• Email
• Reprints

16.47 | 0 komentar | Read More

UPDATE 1-Bankrupt Solyndra seeks $1.5 bln in damages from Chinese peers

Fri Oct 12, 2012 10:14pm EDT

By Thyagaraju Adinarayan

Oct 12 (Reuters) - Bankrupt solar firm Solyndra has filed a lawsuit against three U.S.-listed Chinese solar players, including Suntech Power Holdings Co, seeking $1.5 billion in compensation due to monopolization by these firms, according to court documents filed on Thursday.

The lawsuit was filed against Suntech, Trina Solar Ltd and Yingli Green Energy Holding Co claiming that the trio's panel prices moved in tandem - falling 75 percent in four years in the U.S.

Solyndra, which claims in the lawsuit that the trio were involved in predatory pricing and price fixing, filed for bankruptcy a year ago as it could no longer compete with plunging prices of solar panels imported from China.

U.S. solar companies launched a complaint last year alleging protectionism from Beijing for Chinese panel makers, sparking trade disputes between the two countries.

As a result of the ongoing tryst, the U.S. slapped steep final duties on billions of dollars of solar energy products from China earlier this week.

Defendants - Suntech, Trina and Yingli - came to the U.S. and raised money from the stock market and deployed that capital to "destroy" American solar manufacturers, said Solyndra in the suit filed in a Northern California district court.

"We just received notice of this complaint, but from our initial review, these are unwarranted and misguided claims from a company that has a clear history of failed technology and achievements," said Robert Petrina, Managing Director, Yingli Green Energy Americas.

The other two Chinese companies named as defendants were not available for comment outside of business hours.

Solyndra has sold everything from its remaining inventory and assembly equipment to office computers in a bid to raise money to repay creditors.

The Obama administration came under fire for missing signs of financial trouble at the California-based Solyndra and approving nearly $535 million in loans in a bid to spark a clean energy industry and create jobs through stimulus spending.

Last year, executives from bankrupt Solyndra LLC testified that a flood of cheap Chinese solar panels kept it from realizing $1.2 billion in contracts it announced in 2008.

The lawsuit is Solyndra, LLC v. Suntech Power Holdings Co Ltd et al, U.S. District Court, Northern District of California, No. 12-05272.

• Link this
• Share this
• Digg this
• Email
• Reprints

16.47 | 0 komentar | Read More

Packers interested in big Canada hog farm hurt by feed costs

Fri Oct 12, 2012 2:32pm EDT

* Maple Leaf Foods, Olymel eyeing Big Sky - receiver

* Puratone court protection extended; buyers interested

By Rod Nickel

WINNIPEG, Manitoba, Oct 12 (Reuters) - Two Canadian pork processors are among those expressing interest in Canada's second-biggest hog producer, Big Sky Farms, which is looking for new ownership after soaring feed costs left it unable to pay its bills.

Big Sky, which produces about 1 million pigs per year and is based near Humboldt, Saskatchewan, entered receivership in early September. Manitoba-based hog producer Puratone Corporation is also up for sale, after entering court protection from creditors last month.

Both Toronto-based Maple Leaf Foods and Quebec-based Olymel L.P. are sizing up Big Sky, said Kevin Brennan, senior vice-president at Ernst & Young, the receiver for Big Sky. Big Sky is already a supplier to those companies' hog plants.

Some packers outside Canada are also interested, he said.

"There's a great deal of interest in terms of buying Big Sky," said Brennan, adding that Big Sky is for sale as a whole, not in pieces.

"They take a long-term view of the industry itself, and if there's a concentration of producers going out of business it provides opportunity for others to grow."

Maple Leaf spokesman Dave Bauer said it's premature to comment on any specific opportunities the company may have.

"We are evaluating several options that would secure our longer term hog supply," he said.

An Olymel spokesman could not be immediately reached.

A severe drought in the United States has decimated crops this year, which has led to higher costs for grains used to feed pigs. Rising feed costs have prompted some farmers to liquidate their herds, putting short-term pressure on hog prices and making losses worse for the remaining North American hog farmers.

Ernst & Young will ask a court next week to approve a sales process for Big Sky.

Saskatchewan Agriculture Minister Lyle Stewart said Big Sky should be an attractive acquisition for "major operators" in Canada looking to expand.

"I would expect it to be sold off more or less in one piece. It's too valuable an asset" to shut down, he said.

Big Sky owes about C$69 million ($70.4 million) to four secured creditors: lenders Bank of Nova Scotia (C$26 million), Bank of Montreal (C$16.7 million), National Bank of Canada (C$16.2 million) and Farm Credit Canada (C$9.8 million).

MANITOBA'S PURATONE ATTRACTS INTEREST

Despite the hog industry's problems, there are parties interested in buying Puratone as a whole, said court-appointed monitor Brent Warga of Deloitte.

Two parties filed expressions of interest with the monitor in buying all or most of the company, and a third group has also expressed interest. All were rejected, but the parties were invited to make new offers by mid-October, with the intent of a sale by Oct. 22, according to court documents.

A Manitoba court this week extended Puratone's protection from creditors until Nov. 2.

Puratone, which sells about 500,000 hogs annually, owes a total of C$86 million to three secured creditors: lenders Bank of Montreal (C$40.9 million) Farm Credit Canada (C$40.3 million) and the Manitoba government's farm insurance and lending corporation (C$5 million).

Both Big Sky and Puratone continue to feed pigs and pay staff as usual, and have not liquidated their herds.

Canada is the world's third-largest pork exporter and the biggest live hog exporter.

• Link this
• Share this
• Digg this
• Email
• Reprints

16.47 | 0 komentar | Read More

Bankrupt Solyndra seeks $1.5 bln in damages from Chinese peers

Fri Oct 12, 2012 9:38pm EDT

Oct 12 (Reuters) - Bankrupt solar firm Solyndra has filed a lawsuit against three U.S.-listed Chinese solar players, including Suntech Power Holdings Co, seeking $1.5 billion in compensation due to monopolization by these firms, according to court documents filed on Thursday.

The lawsuit was filed against Suntech, Trina Solar Ltd and Yingli Green Energy Holding Co claiming that the trio's panel prices moved in tandem - falling 75 percent in four years in the U.S.

Solyndra, which claims in the lawsuit that the trio were involved in predatory pricing and price fixing, filed for bankruptcy a year ago as it could no longer compete with plunging prices of solar panels imported from China.

U.S. solar companies launched a complaint last year alleging protectionism from Beijing for Chinese panel makers, sparking trade disputes between the two countries.

As a result of the ongoing tryst, the U.S. slapped steep final duties on billions of dollars of solar energy products from China earlier this week.

Defendants - Suntech, Trina and Yingli - came to the U.S. and raised money from the stock market and deployed that capital to "destroy" American solar manufacturers, said Solyndra in the suit filed in a Northern California district court.

The three Chinese companies named as defendants were not available for comment outside of business hours.

Solyndra has sold everything from its remaining inventory and assembly equipment to office computers in a bid to raise money to repay creditors.

The Obama administration came under fire for missing signs of financial trouble at the California-based Solyndra and approving nearly $535 million in loans in a bid to spark a clean energy industry and create jobs through stimulus spending.

Last year, executives from bankrupt Solyndra LLC testified that a flood of cheap Chinese solar panels kept it from realizing $1.2 billion in contracts it announced in 2008.

The lawsuit is Solyndra, LLC v. Suntech Power Holdings Co Ltd et al, U.S. District Court, Northern District of California, No. 12-05272.

• Link this
• Share this
• Digg this
• Email
• Reprints

16.47 | 0 komentar | Read More

UPDATE 1-Bankrupt Solyndra seeks $1.5 bln in damages from Chinese peers

Fri Oct 12, 2012 10:14pm EDT

By Thyagaraju Adinarayan

Oct 12 (Reuters) - Bankrupt solar firm Solyndra has filed a lawsuit against three U.S.-listed Chinese solar players, including Suntech Power Holdings Co, seeking $1.5 billion in compensation due to monopolization by these firms, according to court documents filed on Thursday.

The lawsuit was filed against Suntech, Trina Solar Ltd and Yingli Green Energy Holding Co claiming that the trio's panel prices moved in tandem - falling 75 percent in four years in the U.S.

Solyndra, which claims in the lawsuit that the trio were involved in predatory pricing and price fixing, filed for bankruptcy a year ago as it could no longer compete with plunging prices of solar panels imported from China.

U.S. solar companies launched a complaint last year alleging protectionism from Beijing for Chinese panel makers, sparking trade disputes between the two countries.

As a result of the ongoing tryst, the U.S. slapped steep final duties on billions of dollars of solar energy products from China earlier this week.

Defendants - Suntech, Trina and Yingli - came to the U.S. and raised money from the stock market and deployed that capital to "destroy" American solar manufacturers, said Solyndra in the suit filed in a Northern California district court.

"We just received notice of this complaint, but from our initial review, these are unwarranted and misguided claims from a company that has a clear history of failed technology and achievements," said Robert Petrina, Managing Director, Yingli Green Energy Americas.

The other two Chinese companies named as defendants were not available for comment outside of business hours.

Solyndra has sold everything from its remaining inventory and assembly equipment to office computers in a bid to raise money to repay creditors.

The Obama administration came under fire for missing signs of financial trouble at the California-based Solyndra and approving nearly $535 million in loans in a bid to spark a clean energy industry and create jobs through stimulus spending.

Last year, executives from bankrupt Solyndra LLC testified that a flood of cheap Chinese solar panels kept it from realizing $1.2 billion in contracts it announced in 2008.

The lawsuit is Solyndra, LLC v. Suntech Power Holdings Co Ltd et al, U.S. District Court, Northern District of California, No. 12-05272.

• Link this
• Share this
• Digg this
• Email
• Reprints

16.47 | 0 komentar | Read More

Polimex says state agency to buy new shares at max PLN 0.5 each

WARSAW | Fri Oct 12, 2012 1:50am EDT

WARSAW Oct 12 (Reuters) - Polish state-run agency ARP wants to buy new shares in the beleaguered local builder Polimex at up to 0.5 zlotys (15 cents) per share, the company said, offering creditors the chance to convert their outstanding debt into shares valued at up to 0.6 zlotys each.

ARP, which also has an option to buy subscription warrants for new Polimex shares valued at up to 0.5 zlotys each, agreed to spend no more than 250 million zlotys ($79 million) to buy a stake of up to 33 percent to aid the troubled company.

Creditors already agreed to waive interest payments until the end of November to give Polimex time to restructure its 2.5 billion zloty debt. They were now offered to swap debt into shares valued below their 0.66 zloty Thursday closing price.

Current Polimex shareholders will vote on the proposals on Monday.

The builder, valued at 349 million zlotys, is the largest of dozens of Polish construction groups to run into trouble after Poland's motorway bonanza ahead of the Euro 2012 soccer tournament turned sour, leaving builders deeply in debt.

In a series of moves to avoid the fate of fellow builder PBG , which has been in bankruptcy protection since June, Polimex signed a vital 6.3-billion zloty power deal and already secured a lifeline loan from ARP.

The agency, despite possible problems from EU regulators over state aid, said earlier this week it would be interested in buying the Sefako and Energomontaz Polnoc units that Polimex put up for sale. ($1 = 3.1604 Polish zlotys) (Reporting by Adrian Krajewski; Editing by Eric Meijer)

• Link this
• Share this
• Digg this
• Email
• Reprints

16.47 | 0 komentar | Read More

UPDATE 1-American Air pares flight schedule through November first half

Thu Oct 11, 2012 5:50pm EDT

Oct 11 (Reuters) - American Airlines said it will cut back on passenger capacity through the first half of November, extending reductions from September and October as it canceled hundreds of flights, citing aircraft maintenance issues and pilots reporting in sick.

The carrier, which filed for Chapter 11 bankruptcy protection last year, said in a memo to American managers that it was cutting its flight schedule through the first part of November by 1 percent to give it more flexibility to organize crews and planes to return to a more normal pattern. American said the move would not affect holiday travel.

"While we are experiencing improvements in several areas of the operation, we are not yet back to the levels our customers deserve and expect from American," the carrier said in the memo, which was emailed to Reuters.

Spokeswoman Andrea Huguely on Thursday said American is canceling about 31 flights a day out of about 3,500 daily trips between now and mid-November. She said American canceled about 400 flights since September.

American, a unit of AMR Corp, cut its flight schedule for September and October by 1 percent to 2 percent. American blamed flight disruptions on a slowdown campaign by pilots that it said was causing economic damage to the airline and alienating passengers. Incidents in which seats came unbolted from the floor on American flights have also raised concerns about the carrier.

The Allied Pilots Association union, which represents American's pilots, has said it called no work slowdown against the carrier. But the union has stressed that pilots want a better contract on par with those at rivals such as Delta Air Lines.

Pilots voted down a concessionary contract from American in August. Talks on a contract resumed with the pilots union last week.

Robert Mann, an airline consultant in Port Washington, New York, said weak demand might be one factor in the latest move.

"There is undoubtedly less demand for travel in recent weeks that we've seen," Mann said. "That would suggest that a risk-averse strategy would simply be to fly less."

• Link this
• Share this
• Digg this
• Email
• Reprints

16.47 | 0 komentar | Read More

PRESS DIGEST - Wall Street Journal - Oct 12

Fri Oct 12, 2012 2:18am EDT

Oct 12 (Reuters) - The following are the top stories in the Wall Street Journal on Friday. Reuters has not verified these stories and does not vouch for their accuracy.

* Japanese phone and internet company Softbank Corp is in talks to buy a significant stake in Sprint Nextel Corp , the ailing U.S. wireless carrier said. A deal would offer a multibillion-dollar lifeline that could help Sprint finance future mergers of its own and better compete with its much bigger and richer rivals.

* Vice President Joe Biden and Republican rival Paul Ryan engaged in a confrontational debate Thursday night that included interruptions, flippant asides and pointed accusations over a wide range of economic, foreign policy and social issues.

* Coca Cola Hellenic Bottling Co, the biggest company by value on the Greek stock market, will move its headquarters to Switzerland and switch its main market listing to London, in the biggest sign yet of southern European companies pulling away from the troubled region.

* Spanish officials voiced defiance on Thursday after a credit downgrade left the country's rating close to junk status at two firms, saying the surprise move wouldn't affect their plans to raise money on financial markets.

* A group of bondholders that specialize in buying debt of distressed companies has, among other proposals, offered to provide between $1 billion and $2 billion in financing in exchange for big ownership stakes in a restructured AMR Corp.

* Best Buy Co is planning to match the prices of internet competitors such as Amazon.com Inc this holiday season, even as it plays down its concerns over shoppers browsing gadgets in stores only to buy them for less online.

* Siemens AG said it is planning to cut costs and simplify its business in an overhaul of Germany's flagship industrial group that may include asset sales.

* International Monetary Fund Managing Director Christine Lagarde said Greece should be given an extra two years to meet its budget targets, publicly wading into euro-zone officials' politically sensitive bailout discussions.

* A onetime Goldman Sachs Group Inc computer programmer has asked a state judge to throw out criminal charges against him, saying he shouldn't be prosecuted a second time over the alleged theft of the investment bank's secret computer code.

• Link this
• Share this
• Digg this
• Email
• Reprints

16.47 | 0 komentar | Read More

Solyndra investor sought tax breaks as bankruptcy loomed-filing

By Tom Hals and Dan Levine

Wed Oct 10, 2012 8:04pm EDT

Oct 10 (Reuters) - Eight months before solar panel maker Solyndra filed for bankruptcy, the company's politically connected backer sought to hold on to lucrative tax breaks in the event the company went out of business, according to court documents.

The new information was revealed on Wednesday by the U.S. Internal Revenue Service, which filed an official objection to Solyndra's bankruptcy reorganization plan.

The failure of Solyndra, the company President Obama held up as an example of government backing for renewable energy jobs, is a political weapon for Republicans ahead of the November elections as they highlight energy policies more favorable to fossil fuels.

Solyndra filed for Chapter 11 protection from creditors on Sept. 6, 2011, as it and other solar panel companies were hurt by a flood of cheap imports from China that drove down prices.

The company has auctioned virtually everything from inventory, office equipment and real estate to repay its debts, but may prove unable to pay any of its unsecured creditors.

Solyndra's bankruptcy plan could prove a further embarrassment to the administration if it is seen rewarding risk-driven venture capitalists ahead of unsecured creditors such as suppliers and laid-off staff.

In its court filing on Wednesday, the IRS opposed Solyndra's plan. If approved by creditors, a holding company would emerge from bankruptcy with no employees or business operations - but as much as $350 million in tax breaks that could be used by Solyndra's investors, including Argonaut Ventures.

Argonaut is the investment arm of a foundation tied to the Democratic fundraiser, Oklahoma billionaire George Kaiser. Most of the tax breaks would come in the form of Net Operating Losses (NOLs) which could be used to offset future taxable income.

Meanwhile, under the bankruptcy plan Solyndra's creditors would receive pennies on the dollar, the IRS said, adding that the principal purpose of the plan is "tax avoidance."

A Solyndra spokeswoman said the company would file responsive papers but otherwise declined to comment.

The company filed for bankruptcy in September 2011, but its investors feared a potential liquidation as early as December 2010 if it could not convince the Department of Energy to release additional loans for the company, according to the IRS filing.

The IRS cited emails from Kaiser to one of the venture firm's managing directors.

"I would go a long way to preserve the NOLs," Kaiser wrote in December 2010.

As Argonaut, Solyndra and its tax professionals worked to determine the amount of tax breaks available to Solyndra, the company's chief financial officer was advised to delay a particular transaction which would have reduced the available NOLs by $100 million, the court filing said.

A representative for Kaiser could not immediately be reached.

Solyndra has said in recent court filings it may not be able to repay any of the $528 million that the U.S. government had lent in 2009 to promote clean energy businesses.

Republicans have seized on Solyndra's failure to accuse the White House of rushing the $528 million loan in part to help the venture capital backers. The Obama administration has said the loan was based on the merits of Solyndra's business prospects.

The case in U.S. Bankruptcy Court, District of Delaware is In re: Solyndra LLC et al., 11-12799. (Reporting by Tom Hals in Wilmington, Delaware and Dan Levine in San Francisco; Additional reporting by Nichola Groom in Los Angeles; Editing by Richard Chang)

• Link this
• Share this
• Digg this
• Email
• Reprints

16.47 | 0 komentar | Read More