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Interstate Bakery Preserves Jobs, Poised For Growth >IBCIQ
02/03 04:07 PM
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Interstate: 100% Of The Company's 423 Union Locals Ratified Revised Labor Agreements
02/03 04:07 PM
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Interstate Bakeries Emerges From Chapter 11 Fincl Restructuring With The Unanimous Support Of Union Locals And Secured Creditors
02/03 04:05 PM
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Assume is a bad word, IMO. I haven't seen anything that says these shares will be worthless. Why are these shares still trading? If they are to be worthless, then allowing it to trade these past four years, attaching PR's related to Wonder Bread/Hostess to the ticker seems misleading. JMO
We can't NOT have Twinkies. Twinkies rule.
I think you and I are the only ones that care right now. For now...
Common stock, $0.01 par value, 120,000,000 shares authorized, 81,579,000 shares issued, 45,202,000 shares outstanding
Interstate Bakeries had $19.3 mln cash in December
01/28 08:17 AM
CHICAGO, Jan 28 (Reuters) - Interstate Bakeries Corp (IBCIQ:$0.0390,$0.0040,11.43%) , which has been operating under bankruptcy protection since September 2004, said on Wednesday that it had $19.3 million in cash as of Dec. 13, 2008.
The bankrupt maker of Wonder Bread and Twinkies snack cakes filed its monthly operating report after it said on Monday that it had reached a deal with GE Capital Corp that should allow it to emerge from bankruptcy.
The company said it had borrowed $110.9 million under its $309.0 million debtor-in-possession credit facility as of Dec. 13. The amount of the credit facility available for borrowing was $49 million as of Dec. 13, Interstate said.
Interstate said it had a net loss of $11.3 million and sales of $201.8 million for the four weeks ended Dec. 13.
On Monday, Interstate officials said they had reached "an agreement in principle with GE Capital Corp., a unit of General Electric Co (GE:$13.52,00$0.46,003.52%) on key terms for a revised asset-based revolving credit financing facility. [ID:nN26411765]
(Reporting by Jessica Wohl, editing by Dave Zimmerman)
8-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): January 27, 2009
INTERSTATE BAKERIES CORPORATION
(Exact Name of Registrant as Specified in Its Charter)
Delaware
(State or Other Jurisdiction of Incorporation)
1-1116543-1470322
(Commission File Number)(IRS Employer Identification No.)
12 East Armour Boulevard
Kansas City, Missouri64111
(Address of Principal Executive Offices)(Zip Code)
(816) 502-4000
(Registrant’s Telephone Number, Including Area Code)
N/A
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 7.01. Regulation FD Disclosure.
As previously reported, on September 22, 2004, Interstate Bakeries Corporation (the “Company”) and each of its wholly-owned subsidiaries filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code (the “Bankruptcy Code”). The filings were made in the United States Bankruptcy Court for the Western District of Missouri (the “Court”). On January 27, 2009, the Company filed with the Court as required by the Bankruptcy Code a consolidated monthly operating report for the four week period ended December 13, 2008 (the “MOR”).
The Company is required to file the MOR with the Bankruptcy Court and the U.S. Trustee pursuant to requirements under Local Rule 2015-2 C. The MOR should be read in conjunction with the Company’s second quarter fiscal 2009 Form 10-Q that was filed with the Securities and Exchange Commission (“SEC”) on December 24, 2008, and the Company’s Annual Report on Form 10-K for fiscal 2008 that was filed with the SEC on September 15, 2008.
The MOR is not audited and will not be subject to audit or review by the Company’s external auditors on a stand-alone basis at any time in the future. The MOR does not include quarterly and year-to-date adjustments reflected upon review of major asset and liability accounts prior to the Company’s filing of its quarterly and annual financial statements with the SEC. Due to the timing impact of the foregoing, results for this period as presented in the MOR are not necessarily indicative of the actual results for the period if all such matters were allocated to all periods in the quarter or year. Accordingly, the period reported in the MOR should not be viewed on a stand-alone basis, but rather in the context of previously reported financial results, including the Company’s SEC filings.
The information contained in the MOR is subject to additional qualifications and limitations as described in the Explanatory Notes to the MOR and readers are advised to read and consider such qualifications and limitations carefully. Accordingly, the Company cautions readers not to place undue reliance upon the information contained in the MOR. Readers are also cautioned to refer to the risk factors contained in the Company’s Annual Report on Form 10-K for the fiscal year ended May 31, 2008, as supplemented by the Company’s second quarter fiscal 2009 Form 10-Q, which address risks that could adversely affect our financial condition, results of operations and cash flows. For these reasons, the financial information contained in the report furnished today is not indicative of the Company’s financial condition or operating results on a basis consistent with generally accepted accounting principles in the United States.
As reflected in the MOR, the Company reported net sales of $201.8 million for the four week period ended December 13, 2008. The Company’s net loss for the four week period ended December 13, 2008 was $11.3 million.
The Company reported cash of $19.3 million as of December 13, 2008. As of December 13, 2008 the Company had borrowed $110.9 million under its $309.0 million debtor-in-possession credit facility, which is subject to a borrowing base formula based on its level of eligible accounts receivable, inventory, certain real property and reserves. The credit facility was also utilized to support the issuance of letters of credit primarily in
support of the Company’s insurance programs. As of December 13, 2008, there were $149.1 million of letters of credit outstanding under the debtor-in-possession credit facility, which were partially collateralized by $21.1 million of restricted cash as shown on the MOR. The amount of the credit facility available for borrowing was $49.0 million as of December 13, 2008.
The foregoing description of the MOR is not intended to be complete and is qualified in its entirety by reference to the MOR attached hereto as Exhibit 99.1 and incorporated by reference herein.
The information in this Current Report on Form 8-K under the heading Item 7.01, “Regulation FD Disclosure,” including Exhibit 99.1, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference to such filing.
Cautionary Statement Regarding Forward-Looking Statements and Other Matters
Some information contained in this Current Report on Form 8-K may be forward-looking statements within the meaning of the federal securities laws. These forward-looking statements are not historical in nature and include statements that reflect, when made, the Company’s views with respect to current events and financial performance. These forward-looking statements can be identified by forward-looking words such as “may,” “will,” “expect,” “intend,” “anticipate,” “believe,” “estimate,” “plan,” “could,” “should” and “continue” or similar words. These forward-looking statements may also use different phrases. All such forward-looking statements are and will be subject to numerous risks and uncertainties, many of which are beyond our control that could cause actual results to differ materially from such statements. Factors that could cause actual results to differ materially include, without limitation: the ability of the Company to continue as a going concern; the ability of the Company to consummate its plan of reorganization, which was confirmed by the bankruptcy court on December 5, 2008; the ability of the Company to obtain the financing necessary to implement its business plan and emerge from Chapter 11; the ability of the Company to operate pursuant to the covenants, terms and certifications of its DIP financing facility, as amended and restated; the ability of the Company to successfully negotiate an extension and increase in the amount available under, or refinance, its DIP financing facility, if needed, which expires on February 9, 2009; the Company’s ability to implement its business plan; the significant time that is and will be required by management to consummate the plan of reorganization, as well as to continue to evaluate various alternatives in the event the plan of reorganization is not consummated, including, but not limited to, the sale of the Company or some or all of its assets, infusion of capital, debt restructuring, or any combination of these options and, absent the ability to pursue any such strategy, the orderly wind-down of the Company’s operations; the ability of the Company to obtain court approval with respect to motions in the Chapter 11 proceeding filed by it from time to time; risks associated with third parties seeking and obtaining court approval for the appointment of a Chapter 11 trustee or to convert the Chapter 11 proceeding to a Chapter 7 proceeding; risks associated with cost increases in materials, ingredients, energy and employee wages and benefits; risks associated with the Company’s restructuring activities, including the risks associated with
achieving the desired savings; the Company’s ability to successfully reject unfavorable contracts and leases; the duration of the Chapter 11 process; the ability of the Company to obtain and maintain adequate terms with vendors and service providers; the potential adverse impact of the Chapter 11 proceeding on the Company’s liquidity or results of operations; the Company’s ability to operate its business under the restrictions imposed by the Chapter 11 process; the instructions, orders and decisions of the bankruptcy court and other effects of legal and administrative proceedings, settlements, investigations and claims; risks associated with product price increases, including the risk that such actions will not effectively offset inflationary cost pressures and may adversely impact sales of the Company’s products; the effectiveness of the Company’s efforts to hedge its exposure to price increases with respect to various ingredients and energy and the Company’s ability to hedge given its financial condition; the ability of the Company to attract, motivate and/or retain key executives and employees; changes in the Company’s relationship with employees and the unions that represent them; successful implementation of information technology improvements; increased costs and uncertainties with respect to a defined benefit pension plan to which we contribute; costs associated with increased contributions to single employer, multiple employer or multi-employer pension plans; the impact of any withdrawal liability arising under the Company’s multi-employer pension plans as a result of prior actions or current consolidations; the effectiveness and adequacy of our information and data systems; changes in general economic and business conditions (including in the bread and sweet goods markets); changes in consumer tastes or eating habits; acceptance of new product offerings by consumers and the Company’s ability to expand existing brands; the performance of the Company’s recent and planned new product introductions, including the success of such new products in achieving and retaining market share; the effectiveness of advertising and marketing spending; any inability to protect and maintain the value of the Company’s intellectual property; future product recalls or food safety concerns; actions of competitors, including pricing policy and promotional spending; bankruptcy filings by customers; costs associated with environmental compliance and remediation; actions of governmental entities, including regulatory requirements; the outcome of legal proceedings to which we are or may become a party; business disruption from terrorist acts, our nation’s response to such acts and acts of war; and other factors. These statements speak only as of the date of this Current Report on Form 8-K, and we disclaim any intention or obligation to update or revise any forward-looking statements to reflect new information, future events or developments or otherwise, except as required by law. We have provided additional information in our historical filings with the SEC, which readers are encouraged to review, concerning other factors that could cause actual results to differ materially from those indicated in the forward-looking statements.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit No.Description
99.1Interstate Bakeries Corporation Consolidated Monthly Operating Report for the four week period ended December 13, 2008
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: January 27, 2009 INTERSTATE BAKERIES
CORPORATION
By:/s/ J. Randall Vance
J. Randall Vance
Senior Vice President, Chief
Financial Officer and Treasurer
EXHIBIT INDEX
Exhibit No.Description
99.1Interstate Bakeries Corporation Consolidated Monthly Operating Report for the four week period ended December 13, 2008
EX-99.1
Exhibit 99.1
Case Name: Interstate Bakeries
Corporation & All SubsidiariesCase No: 04-45814-jwv-11
Consolidated Monthly Operating Report Summary
For The Four Weeks Ended and as of December 13, 2008
REVENUE
Gross Income $201,802,115
Less Cost of Goods Sold 97,637,492
Ingredients, Packaging & Outside Purchasing $55,321,821
Direct & Indirect Labor 32,753,372
Overhead & Production Administration 9,562,299
Gross Profit 104,164,623
OPERATING EXPENSES
Owner - Draws/Salaries -
Selling & Delivery Employee Salaries 45,709,954
Advertising and Marketing 3,672,892
Insurance (Property, Casualty, & Medical) 11,334,016
Payroll Taxes 4,060,052
Lease and Rent 3,263,121
Telephone and Utilities 1,342,584
Corporate Expense (Including Salaries) 7,191,700
Other Expenses 26,406,636 (i)
Total Operating Expenses 102,980,955
EBITDA 1,183,668
Restructuring & Reorganization Charges 3,319,572 (ii)
Depreciation and Amortization 4,488,658
Abandonment 78,058
Property & Equipment Impairment -
Other( Income)/Expense 26,510
Gain/Loss Sale of Prop -
Interest Expense 4,809,674
Operating Income (Loss) (11,538,804)
Income Tax Expense (Benefit) (250,522)
Net Income (Loss) $(11,288,282)
CURRENT ASSETS
Accounts Receivable at end of period $126,693,844
Increase (Decrease) in Accounts Receivable for period (7,913,157)
Inventory at end of period 57,378,911
Increase (Decrease) in Inventory for period (2,761,622)
Cash at end of period 19,272,760
Increase (Decrease) in Cash for period (5,391,175)
Restricted Cash 21,124,605 (iii)
Increase (Decrease) in Restricted Cash for period 7,865
LIABILITIES
Increase (Decrease) Liabilities Not Subject to Compromise (10,577,952)
Increase (Decrease) Liabilities Subject to Compromise (111,873) (iv)
Taxes payable:
Federal Payroll Taxes $3,973,380
State/Local Payroll Taxes 4,429,405
State Sales Taxes 700,360
Real Estate and
Personal Property Taxes 6,092,735
Other (see attached supplemental schedule) 2,632,054
Total Taxes Payable 17,827,934
See attached supplemental schedule for footnoted information.
IBC
Other Taxes Payable - Supplemental Schedule
for period ended
December 13, 2008
Description Amount
Use Tax $535,831
Accr. Franchise Tax 496,532
Other Taxes 1,599,691
Total Other Taxes Payable $2,632,054
7th period
(i) Other Expenses included the following items:
Employee benefit costs 12,485,044
Facility costs (excluding lease expense) 809,480
Distribution/transportation costs 10,340,175
Local promotional costs 1,042,557
Miscellaneous 1,729,380
$26,406,636
(ii) Restructuring and reorganization expenses for the period included:
Restructuring expenses
(Gain)/loss on sale of assets 0
Other 91,834
Reorganization expenses
Professional fees 3,379,179
Interest income (10,475)
Adjustments to lease rejection expense (102,660)
(Gain)/loss on sale of assets (38,306)
$3,319,572
(iii) Restricted cash represents cash held as collateral pursuant to IBC's debtor-in-possession credit facility.
Note: Capital expenditures for the period totaled approximately $1.6 million.
EXPLANATORY NOTES TO THE INTERSTATE BAKERIES CORPORATION
CONSOLIDATED MONTHLY OPERATING REPORT
DATED AS OF DECEMBER 13, 2008
1.This consolidated Monthly Operating Report (MOR), reflecting results for the four-week period ended December 13, 2008 and balances of and period changes in certain of the Company’s accounts as of December 13, 2008, is preliminary and unaudited. This MOR should be read together and concurrently with the Company’s second quarter 2009 Form 10-Q that was filed with the Securities and Exchange Commission (SEC) on December 24, 2008 and the Company’s Annual Report on Form 10-K for fiscal 2008 filed with the SEC on September 15, 2008 for a comprehensive description of our current financial condition and operating results. This MOR is being provided to the Bankruptcy Court and the U.S. Trustee pursuant to requirements under Local Rule 2015-2 C.
2.This MOR is not audited and will not be subject to audit or review by our external auditors on a stand-alone basis at any time in the future. This MOR does not include quarterly and year-to-date adjustments reflected upon review of major asset and liability accounts prior to the Company’s filing of its quarterly and annual financial statements with the SEC. Due to the timing impact of the foregoing, results for this period as presented in the MOR are not necessarily indicative of the actual results for the period if all such matters were allocated to all periods in the quarter or year. Accordingly, each period reported in the MORs should not be viewed on a stand-alone basis, but rather in the context of previously reported financial results, including the Company’s SEC filings.
3.This MOR is presented in a format providing information required under local rule and incorporating measurements used for internal operating purposes, rather than in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information. This MOR does not include certain financial statements and explanatory footnotes, including disclosures required under GAAP.
4.As of December 13, 2008, the Company had borrowed $110.9 million under its $309.0 million debtor-in-possession credit facility, which is subject to a borrowing base formula based on its level of eligible accounts receivable, inventory, certain real property and reserves. The credit facility was also utilized to support the issuance of letters of credit primarily in support of the Company’s insurance programs. As of December 13, 2008, there were $149.1 million of letters of credit outstanding under the debtor-in-possession credit facility. The amount of the credit facility available for borrowing was $49.0 million as of December 13, 2008.
Interstate Bakeries Sales $201.8M For 4 Weeks Ended Dec 13
01/28 06:06 AM
DOW JONES NEWSWIRES
Interstate Bakeries Corp. (IBCIQ:$0.0390,$0.0040,11.43%) on Wednesday reported a net loss of $11.3 million on sales of $201.8 million for the four-week period ended Dec. 13.
Kansas City-based Interstate Bakeries (IBCIQ:$0.0390,$0.0040,11.43%) , which makes Wonder Bread, Hostess cupcakes and Devil Dogs, had $19.3 million in cash as of Dec. 13, according to a filing with the Securities and Exchange Commission.
Interstate Bakeries (IBCIQ:$0.0390,$0.0040,11.43%) filed for bankruptcy protection in September 2004.
-Bhattiprolu Murti, Dow Jones Newswires; 202-862-1357
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01-28-090606ET
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Interstate Bakeries lines up lending as important bankruptcy deadline draws near.
[The Kansas City Star, Mo.]
01/28 02:51 AM
Jan. 28--Interstate Bakeries Corp. is racing the clock to complete its post-bankruptcy financing plan after General Electric (GE:$13.54,00$0.48,003.68%) cut $20 million from the amount it is willing to lend the baker.
Interstate's current funding and all of the commitments it has for financing to operate the business upon emerging from bankruptcy expire in less than two weeks. The company needs court approval for the financing changes, and documentation must be rewritten, approved and signed.
Interstate and GE late Monday reached an agreement on a revolving loan that was needed for the wholesale baker to emerge from more than four years in bankruptcy. The agreement came after GE reduced the loan amount to $105 million, from the $125 million originally committed to in September.
Kansas City-based Interstate also agreed to pay additional underwriting fees and a higher interest rate.
As part of the negotiations, other lenders who have agreed to make a term loan to the maker of Wonder Bread and Hostess snacks increased their commitment to $354 million from $344 million.
In a court filing Monday night, the baker asked the bankruptcy court to approve the change in the financing terms. An emergency hearing is scheduled for Thursday.
Craig Jung, Interstate chief executive, said the company and its lenders were working diligently to complete the financing documentation.
"Given today's challenging credit markets, our road to emergence from Chapter 11 has been longer and more challenging than anticipated, but we have now reached the final stretch," Jung said in a statement. "While much work remains to be done to close our financing transactions, we believe that our accord with GE Capital has cleared the last significant obstacle to our emergence."
The loan from General Electric Capital Corp. and GE Capital Markets is part of a nearly $600 million package that would provide Interstate the capital and loans to operate its 41 bakeries and the rest of its business after bankruptcy.
The baking company, which filed for bankruptcy in September 2004, got court approval Dec. 5 for its reorganization plan but had to complete the details of the financing package it had negotiated in the fall.
Under the plan, New York investment firm Ripplewood Holdings has agreed to invest $44.2 million in cash and $85.8 million in convertible debt in Interstate. It will take a 50 percent equity stake in the reorganized company.
Silver Point Finance LLC and Monarch Master Funding Ltd, agreed to make a $344 million term loan, a sum they have now increased to $354 million.
------
By the numbers Interstate Bakeries Corp. on Tuesday filed a monthly financial operating report with the bankruptcy court showing it had an $11.5 million operating loss for the four weeks ending Dec. 13 on revenues of $201.2 million.
The company said as of Dec. 13, it had borrowed $110.9 million under its $309 million so-called debtor-in-possession credit facility.
To reach Eric Palmer, call 816-234-4335 or send e-mail to epalmer@kcstar.com.
To see more of The Kansas City Star, or to subscribe to the newspaper, go to http://www.kansascity.com.
Copyright (c) 2009, The Kansas City Star, Mo.
Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
Took long enough, nice recovery though...
Very thin up top...
Fidelity says "Invalid Symbol"
You never heard of a counter offer? A match? What about the quality of product and services? You think that might weigh on anyones decision? The grass can often look greener on the other side.
Wow, Nortel must have alot of the market in their corner. I would expect others to go after them, but as the saying goes, "A bird in the hand is much better than two in the bush..." Nortel can choose to meet or beat. And they can release the ones they dont want, also giving their competitors their scraps at prices they weren't willing to agree to. If it is bad for Nortels business to keep certain partners under the terms their competitors want to offer, than how great is it? They wont let the good ones go. JMO
Glad you agree with me that old news is just old. If it important I suppose Mods could put it in the Ibox.
You already posted that, plus that article is a week old.
Nice start, IMO...
Volatile open, IMO...
volume good...
This is from last week...
UPDATE 1-Interstate Bakeries in "productive" talks with lender
01/16 10:07 PM
NEW YORK, Jan 13 (Reuters) - Interstate Bakeries Corp (IBCIQ:$0.0400,$0.0010,2.56%) , the bankrupt maker of Wonder Bread and Twinkies treats, said on Tuesday that it is in "productive discussions" with lender GE Capital Corp regarding a credit agreement that has been delaying its bankruptcy exit.
The company said it is working with the General Electric Co (GE:$13.17,00$-0.79,00-5.66%) unit to
finalize documentation for an asset-based revolving credit agreement and that it is hopeful the documentation will be finalized "in the very near future."
Once the agreement is finalized, the company said it is hopeful its
bankruptcy exit financing will close.
"All parties in the discussion are focused on the importance of
completing the transaction, in order to allow IBC to emerge from Chapter 11," the company said in a statement.
General Electric Capital Corp and GE Capital Markets agreed last year to
provide $125 million in revolving credit to the company.
Interstate Bakeries (IBCIQ:$0.0400,$0.0010,2.56%) is facing a Feb. 9 deadline on its
debtor-in-possession financing. The company had intended to emerge from its lengthy bankruptcy before the end of December.
(Reporting by Emily Chasan; Editing by Phil Berlowitz) Keywords: INTERSTATEBAKERIES/GE
(emily.chasan@thomsonreuters.com; +1 646 223 6114; Reuters Messaging: emily.chasan.reuters.com@reuters.net)
PRESS DIGEST - Canada - Jan 15 01/20 11:43 AM
Jan 15 (Reuters) - The following are top stories from selected Canadian newspapers. Reuters has not verified these stories and does not vouch for their accuracy.
THE GLOBE AND MAIL:
- The Harper government has been floating the idea of a tax credit for
home renovations - an idea that could deliver significant stimulus for Canada's residential construction industry in the Jan. 27 budget.
- As the global financial crisis jeopardizes the future of private
pension plans, the Quebec government is taking the unprecedented move of guaranteeing benefits to pensioners and workers of companies whose plans go bankrupt.
Report on Business Section
- Nortel Networks Corp (NRTLQ:$0.0760,$-0.0070,-8.43%) , the humbled giant of Canadian technology, is
vowing to re-emerge from creditor protection a stronger company, but first needs to win over nervous customers and suppliers and possibly secure financial aid from skeptical governments.
- Many distressed auto-parts makers will collapse during the next few
months because of severe cuts in North American auto production during the first quarter, says Don Walker, co-chief executive officer of Magna International Inc (MGA:$28.50,00$-1.14,00-3.85%)
NATIONAL POST:
- Israeli Defence Minister Ehud Barak apologized to U.N.
Secretary-General Ban Ki-moon on Thursday after Israeli forces shelled the main U.N. aid compound in the city of Gaza, Ban told reporters.
Financial Post Section:
- Apple Inc (AAPL:$79.71,00$-2.62,00-3.18%) chief executive Steve Jobs is taking a leave of absence until
June, telling his employees in an e-mail that his health issues are more complex than he thought.
- Bernard Madoff returned to the confines of his luxury Manhattan
penthouse Wednesday after a second federal judge ruled against a request by U.S. prosecutors to jail the fallen financier.
- BA Energy Inc, developer of the C$4 billion Heartland Upgrader near
Edmonton, Wednesday became the first oil sands company to file for bankruptcy protection, fearing its parent company's major lender, Credit Suisse (CS:$20.17,00$-4.06,00-16.76%) , will recall a $507 million loan.
(Compiled by Bangalore Equities Newsdesk +91 80 4135 5800; within U.S. +1 646 223 8780)) Keywords: PRESSDIGEST/CANADA
Fannie Mae sells $2 bln bills at mixed rates
01/14 09:53 AM
NEW YORK, Jan 14 (Reuters) - Fannie Mae (FNM:$0.7015,$-0.0385,-5.20%) <FNM.P> said on Wednesday it sold $2 billion in bills at mixed interest rates compared with sales of the same maturities and size a week ago.
Fannie Mae (FNM:$0.7015,$-0.0385,-5.20%) said it sold $1 billion of three-month benchmark bills due April 15, 2009 at a stop-out rate, or lowest accepted rate, of 0.250 percent and $1 billion of six-month bills due July 15, 2009 at a 0.388 percent stop-out rate.
The three-month bills were priced at 99.937 and have a money market yield of 0.250 percent, and the six-month bills were priced at 99.804 and have a money market yield of 0.389 percent, according to Fannie Mae (FNM:$0.7015,$-0.0385,-5.20%) .
On Jan. 7, Fannie sold $1 billion of three-month bills at a 0.199 percent stop-out rate and $1 billion of six-month bills at a 0.400 percent stop-out rate.
Settlement for the new bills is Jan. 14-15. (Reporting by Caryn Trokie; Editing by Tom Hals)
Posted by: Generic Date: Tuesday, January 13, 2009 10:31:23 AM
In reply to: bob41 who wrote msg# 191489 Post # of 191526
Fed Buys Securities Outright
Last update: 1/13/2009 10:30:05 AM
Type of transaction: AGENCY
Security Type/Security Coupon Rate/Maturity FMC 4.500 2013-01-15 FNM 3.625 2013-02-12 FHL 3.375 2013-02-27 FNM 4.375 2013-03-15 FNM 3.250 2013-04-09 FMC 3.500 2013-05-29 FHL 3.625 2013-05-29 FHL 3.875 2013-06-14 FMC 3.750 2013-06-28 FNM 3.875 2013-07-12 FMC 4.500 2013-07-15 FHL 5.125 2013-08-14 FHL 4.000 2013-09-06 FHL 4.500 2013-09-16 FMC 4.125 2013-09-27 FNM 4.625 2013-10-15 FMC 4.875 2013-11-15 FMC 4.500 2014-01-15 FNM 4.125 2014-04-15 FHL 5.250 2014-06-18 FMC 5.000 2014-07-15 FHL 5.500 2014-08-13 FNM 4.625 2014-10-15 FMC 4.500 2015-01-15 FNM 5.000 2015-04-15 FMC 4.375 2015-07-17 FNM 4.375 2015-10-15 FMC 4.750 2015-11-17 FMC 4.750 2016-01-19 FNM 5.000 2016-03-15 FMC 5.250 2016-04-18 FHL 5.375 2016-05-18 FNM 5.375 2016-07-15 FMC 5.500 2016-07-18 FNM 5.250 2016-09-15 FMC 5.125 2016-10-18 FNM 4.875 2016-12-15 FHL 4.750 2016-12-16 FNM 5.000 2017-02-13 FMC 5.000 2017-02-16 FMC 5.000 2017-04-18 FNM 5.000 2017-05-11 FHL 4.875 2017-05-17 FMC 5.500 2017-08-23 FMC 5.125 2017-11-17
(Data was provided by the New York Federal Reserve Bank).
(MORE TO FOLLOW) Dow Jones NewswiresJanuary 13, 2009 10:30 ET (15:30 GMT)
Cheaters, LOL. Close at .74 have a great weekend...
Somebody took their ball and went home...
Fed buys $1.4 billion of Fannie, Freddie, FHLB debt
01/09 12:52 PM
NEW YORK, Jan 9 (Reuters) - The Federal Reserve bought $1.4 billion of Fannie Mae (FNM:$0.76,00$-0.03,00-3.80%) , Freddie Mac (FRE:$0.76,00$-0.02,00-2.56%) and Federal Home Loan Banks debt in permanent coupon purchases on Friday in an ongoing effort to lower mortgage rates.
Dealers submitted $2.775 billion for consideration in the Fed purchase. The Fed purchases spanned maturities from 2011 through 2012.
For more details on the operation please click on
http://www.newyorkfed.org/markets/pomo/display/index.cfm
(Reporting by John Parry and Lynn Adler; Editing by Chizu Nomiyama)
FANNIE TESTS 'SHORT SALES' TO AVOID FORECLOSURES
Fannie Mae (FNM:$0.7634,$-0.0266,-3.37%) is testing a new program to stave off foreclosures by preapproving 'short sales' of homes, in which mortgage companies allow homeowners to sell houses for less than the value of existing loans, forgiving the difference.
Overseas investors buy Fannie, Freddie debt
01/09 10:31 AM
NEW YORK (MarketWatch) -- Foreign official and private investors increased their holdings of so-called agency debt in the latest week, the first increase in 14 weeks, possibly encouraged by the Federal Reserve's own purchases of debt issued by Fannie Mae (FNM:$0.7625,$-0.0275,-3.48%) , Freddie Mac (FRE:$0.7650,$-0.0150,-1.92%) , and other housing entities. Agency debt held by the Fed in custody for foreign investors increased by $700 million, according to data compiled by the Fed released late Thursday. That's the first increase, and followed last week's small decrease, since early October, when custody holdings went into freefall, said Lou Crandall, chief economist at Wrightson ICAP, in a research note. "It remains to be seen whether foreign official holdings have actually stabilized, or whether this is just a brief lull in the long-term liquidation that began last summer," he said. The Fed bought $10.2 billion in assets from the agencies earlier this week, the first steps in a program designed to lower mortgage rates and stabilize the housing market.
Fed Bought $10.2 Bln Of Agency Mortgage Bonds Jan 5-7
01/08 03:42 PM
NEW YORK (Dow Jones)--The Federal Reserve bought $10.213 billion of mortgage securities backed by Fannie Mae (FNM:$0.791,0$0.041,05.47%) , Freddie Mac (FRE:$0.80,00$0.05,006.67%) , and Ginnie Mae in the first three days of its new program to support the housing market.
The central bank has pledged to purchase $500 billion, or possibly more, of these bonds backed by home loans in the first half of the year, in an effort to push down mortgage rates.
Market participants had expected the Fed purchases to average $3 billion to $4 billion daily, which would keep it on target to complete the aggressive spending spree within the first half of this year.
There was little reaction Thursday afternoon in the mortgage bond market to the data. Risk premiums on these mortgage bonds were two basis points tighter to comparable Treasury yields late afternoon.
"People already knew the Fed was buying heavily," said Art Frank, a mortgage strategist at Deutsche Bank (DB:$35.2500,$-1.7100,-4.63%) .
Risk premiums on these bonds have narrowed as much 100 basis points from their highs in November before the Fed announced its purchasing program.
As a result, mortgage rates that homeowners pay also have fallen from above 6% levels in November to 5.01% as of Thursday, according to Freddie Mac (FRE:$0.80,00$0.05,006.67%) .
Additionally, the extent of Fed purchases is expected to push other investors, who had shied away from this market, to return.
Most of the central bank's purchases were of mortgage bonds guaranteed by Freddie. It bought $6.899 billion of Freddie bonds, $2.864 billion of Fannie bonds, and $450 million of Ginnie Mae securities.
Much of its buying was concentrated in the 30-year 4.5% and 5% coupons, according to Fed data.
The central bank, over the three days, bought $3.45 billion of 4.5% coupon and $3 billion of the 5% coupon.
-By Prabha Natarajan, Dow Jones Newswires; 201-938-5071; prabha.natarajan@ dowjones.com
(Anusha Shrivastava contributed to this report.)
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http:// www.djnewsplus.com/nae/al?rnd=4UlX2dQXxJ0qonPM5nmxhA%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
01-08-091542ET
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Fed Bought $2.9 Bln Of Mortgage Bonds Guaranteed By Fannie
01/08 03:02 PM
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01-08-091502ET
Copyright (c) 2009 Dow Jones & Company, Inc.
Fed Bought $10.2 Bln Of Agency Mortgage Bonds Jan 5-7
01/08 03:02 PM
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01-08-091502ET
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UPDATE: Fed To Release Mortgage Purchase Data At 3 PMEST
01/08 02:15 PM
(Updates with change of expected time for release and explanation in first and second paragraphs)
By Prabha Natarajan
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--The Federal Reserve, which started buying mortgage- backed securities guaranteed by Fannie Mae (FNM:$0.781,0$0.031,04.13%) , Freddie Mac (FRE:$0.791100,$0.041100,5.48%) and Ginnie Mae this week, is expected to release its purchase tab around 3 p.m. EST (2000 GMT) Thursday.
The release had initially been expected at 4:30 p.m. EST (2130 GMT) as part of the Fed's balance sheet, which is published every Thursday. But because the purchases haven't settled yet, the data will be published separately on the New York Fed's Web site.
Since Monday, the New York Fed has been buying these mortgage securities in a bid to boost the sagging investor interest in these bonds and stabilize the housing market.
The central bank has said it would buy up to $500 billion of these securities in the first half of the year, and more if needed.
Market participants expect the Fed's purchases to be in the range of $3 billion to $4 billion daily, if it were to keep its aggressive purchase plan.
The extent of Fed purchases is expected to prompt other investors, who had shied away from this market, to return.
The presence of the Fed in the mortgage-backed securities market has pushed risk premiums on these bonds to tighter levels. As a result, mortgage rates that homeowners pay are expected to fall.
-By Prabha Natarajan, Dow Jones Newswires; 201-938-5071; prabha.natarajan@ dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http:// www.djnewsplus.com/nae/al?rnd=4UlX2dQXxJ0qonPM5nmxhA%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
01-08-091415ET
Copyright (c) 2009 Dow Jones & Company, Inc.
Fed To Buy Fannie, Freddie, FHLB Debt Securities Friday
01/08 12:08 PM
NEW YORK (Dow Jones)--The Federal Reserve Bank of New York will hold its sixth auction Friday for the purchase of debt securities issued by Fannie Mae (FNM:$0.777000,$0.027000,3.60%) , Freddie Mac (FRE:$0.78,00$0.03,004.00%) , and the Federal Home Loan Banks system.
This will be the central bank's first purchases for the year. It bought securities of various maturities in December worth $15 billion. The bank announced plans to buy $100 billion of debt issued by these government-sponsored enterprises, and more, if necessary.
This time around, the Fed will buy debt securities that are due between Jan. 18, 2011, and Dec. 21, 2012.
The Fed purchase of debt notes has narrowed risk premiums on these securities that were historically wide last year. It also has boosted investor demand for new debt securities as both Fannie and Freddie sold new bond issues to strong buyer interest this week.
The Fed purchase of these bonds will be between 10:30 a.m. and 11 a.m. Friday.
-By Prabha Natarajan, Dow Jones Newswires; 201-938-5071; prabha.natarajan@ dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http:// www.djnewsplus.com/nae/al?rnd=4UlX2dQXxJ0qonPM5nmxhA%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
01-08-091208ET
Copyright (c) 2009 Dow Jones & Company, Inc.
-Fed To Buy Debt Maturing January 2011 To December 2012
-Fed To Buy Agency Debt Between 10:30 AM And 11 AM Friday
01/08 11:20 AM
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Copyright (c) 2009 Dow Jones & Company, Inc.
Fed To Release Mortgage Purchase Data At 4:30 PM Today
01/08 11:03 AM
NEW YORK (Dow Jones)--The Federal Reserve - which started buying mortgage- backed securities guaranteed by Fannie Mae (FNM:$0.7694,$0.0194,2.59%) , Freddie Mac (FRE:$0.7768,$0.0268,3.57%) , and Ginnie Mae this week - is expected to release its purchase tab at 4:30 p.m. today.
The central bank is expected to issue this data as part of a weekly statistical release every Thursday afternoon.
Since Monday, the New York Federal Reserve has been buying these mortgage securities in a bid to boost the sagging investor interest in these bonds, and stabilize the housing market.
The central bank has said it would buy up to $500 billion of these securities in the first half of the year, and more if needed.
Market participants expect the Fed's purchases to be in the range of $3 billion to $4 billion daily, if it were to keep its aggressive purchase plan.
The extent of Fed purchases is expected to push other investors, who had shied away from this market, to return.
The presence of the Fed in the mortgage-backed securities market has pushed risk premiums on these bonds to tighter levels. As a result, mortgage rates that homeowners pay are expected to fall.
-By Prabha Natarajan, Dow Jones Newswires; 201-938-5071; prabha.natarajan@ dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http:// www.djnewsplus.com/nae/al?rnd=4UlX2dQXxJ0qonPM5nmxhA%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
01-08-091103ET
Copyright (c) 2009 Dow Jones & Company, Inc.
Can preferred shares be shorted?
Paulson: Fannie Mae has four options in the future
Keeping the mortgage giant in conservatorship is a "temporary" situation.
01/07 12:33 PM
WASHINGTON (MarketWatch) - Outgoing Treasury Secretary Henry Paulson on Wednesday outlined four long term options for Fannie Mae (FNM:$0.8048,$-0.0452,-5.32%) and Freddie Mac (FRE:$0.805,0$-0.055,0-6.40%) : nationalization, privatization and two hybrid approaches.
"The first step must be for policymakers to decide - in light of the recent housing bubble and the severe financial and economic penalty it has imposed on our nation - the role government should play in supporting home ownership," Paulson told observers at the Economics Club in Washington.
Paulson is on his way out as Treasury Secretary with President Elect Barack Obama's nominee to succeed Paulson, New York Federal Reserve Chairman Timothy Geithner, ready to step in his place.
The Treasury placed both Fannie and Freddie in a conservatorship in September, which Paulson said must be a temporary condition. He argued that outright nationalization, his first option, is a "less than optimal" approach.
Paulson also said he was skeptical of fully privatizing the housing entities, which was another strategy he discussed. With this approach, Fannie Mae (FNM:$0.8048,$-0.0452,-5.32%) and Freddie Mac (FRE:$0.805,0$-0.055,0-6.40%) would be broken up into a number of entities which would "minimize risk."
One hybrid approach would be to create a Ginnie Mae type entity for non-Federal Housing Authority mortgages. This structure would provide only a partial guarantee for mortgage backed securities.
"While such a hybrid program would clearly define the extent of the government's guarantee, developing risk sharing parameters compatible with profit incentives would be as problematic, and potentially as inefficient, as in the current GSE structure," Paulson said.
He was most supportive of an approach that would establish a mortgage credit guarantor. In this strategy, Congress would replace Fannie Mae (FNM:$0.8048,$-0.0452,-5.32%) and Freddie Mac (FRE:$0.805,0$-0.055,0-6.40%) with private entities that would purchase and securitize mortgages guaranteed by the federal government. These entities would be regulated by a rate setting commission that would also approve mortgage products. "In this model, continued safety and soundness regulation would be essential," Paulson said.
Separately, the Federal Reserve Bank of New York is expected on Thursday to release its first study reporting an aggregate amount of Fannie Mae (FNM:$0.8048,$-0.0452,-5.32%) , Freddie Mac (FRE:$0.805,0$-0.055,0-6.40%) and Ginnie Mae guaranteed mortgage-backed securities the division has purchased as part of an earlier announced $500 billion program. The program was announced on Nov. 25 to create liquidity in the mortgage-backed securities market and help lower mortgage rates in response to the housing crisis. The New York regulator will on a weekly basis provide details about the aggregate dollar figure spent on mortgage backed securities. No details will be provided about which financial institutions are participating. "[This has] accomplished a vitally important step in addressing this housing correction - lower mortgage rates that may bring additional credit-worthy buyers into the housing market," Paulson said.
Paulson argued that the program has already had a significant impact, pointing out that the 30-year fixed mortgage rate has fallen to 6.04% the week before the plan was announced, to 5.1% last week.
A New York Fed spokesman said Wednesday that the division is making one-on-one purchases, rather than auctions as some expected.