Sommet in hunt for future SEC men’s hoops tourneys
Posted on May 31, 2009 at 11:33 pmFollowing the SEC’s spring meeting, word emerges that conference officials are talking with Nashville and Atlanta about hosting the 2013 and 2014 men’s basketball tournaments. The Sommet will also host the event next spring.
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The birth of Government Motors
Posted on at 10:54 pm
This morning’s bankruptcy filing by the largest of Detroit’s Big Three will trim its shareholder base to four groups: The U.S. government (60 percent), the UAW’s health trust (17.5 percent), the governments of Canada and Ontario (12.5 percent) and bondholders (10 percent).
Other nuggets on this topic:
Bloomberg News on the new company’s expected world view:
The new GM would emerge armed with vehicles from its Cadillac, Chevrolet, Buick and GMC units. It will be built to survive on 10 million annual car sales, the Obama administration said. That’s down from the present break-even sales of 16 million vehicles. GM intends to close 11 factories and idle an additional three, while attempting to reopen one idled facility to build a new small car.
Reuters via CNBC gives the skeptics some time at the mic:
“I don’t think they’re going to be successful in answering the fundamental problems of this company — they are addressing the financial issues, but not the business issues,” said Stuart Hirshfield, a bankruptcy lawyer with the Mintz Levin law firm.
And this pithy quote:
“I think this is going to be Obama’s Vietnam,” said automotive historian Bob Elton. “Every time he turns around, there goes another $20 billion.”
Might those next $20 billion go to suppliers? The Journal takes a look at the dominos of a Chapter 11 filing:
It’s possible struggling suppliers will get indirect help from the government through GM in the form of a more payments to suppliers than might be the case in a traditional bankruptcy. A person familiar with the Treasury Department’s discussions expects more suppliers to file for Chapter 11 and said, “We will support GM — and Chrysler for that matter — in trying to make it orderly.”
The Washington Post on the union-investor tug of war:
“The proposal seems to favor the rights and claims of the UAW, a political ally of the current administration and a powerful lobbying force in Washington, over the rights and claims of the company’s diverse group of bondholders,” according to a letter from 20 House members, led by Rep. Jeb Hensarling (R-Tex.), to Treasury Secretary Timothy F. Geithner. “Contractual rights of investors are being trampled by the government under the rationale of ‘extraordinary circumstances.’”
An AP story in the Chicago Tribune examines the tax credits GM will be eligible for when (if) it turns a profit:
Decades ago, Congress severely restricted the ability of money-losing companies to cash in on the tax breaks if they are taken over by other companies. The goal was to discourage corporate takeovers for the principle purpose of avoiding taxes, Willens said.
The government, however, doesn’t want to penalize firms for participating in the taxpayer-financed bailout, so the Treasury Department has issued several notices in recent months creating exceptions for firms that get bailout money. Under the new rules, corporations can keep their tax breaks if the government becomes a majority owner.
And finally, the GM coverage by the Detroit Free Press includes a look at what might happen to the company’s iconic Renaissance Center HQ.
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Restaurants continue slow climb back to health
Posted on at 10:18 pmSame-store sales fell in April for the 11th consecutive month, but operators’ outlook turned positive for the first time since late 2007, says the National Restaurant Association.
Thirty-seven percent of restaurant operators said they expect economic conditions to improve in six months, up from 30 percent who reported similarly last month and the highest level in three years. In comparison, only 16 percent of operators expect economic conditions to worsen in six months, down from 21 percent last month.
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A substantial majority, but a message nonetheless
Posted on at 10:10 pm
The quest by dissident shareholder Bristol Capital to snag two seats on Advocat’s board fell short Friday, garnering a not insignificant 25.6 percent of the votes cast. A year ago, Bristol’s call for the board to pursue a sale received 14 percent of shareholders’ votes. Since then, the shares (Ticker: AVCA) have lost 70 percent of their value.
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Bing hearts Music City
Posted on May 29, 2009 at 2:47 pm
A demonstration video of Microsoft’s new search engine prominently features the Nashville skyline in its design. The eyebrow is raised…
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A second-day pop for Genesco
Posted on at 2:37 pm
After the shoe and hat retailer reported strong results yesterday, the stock (Ticker: GCO) did next to nothing. It took an upgrade from Sterne Agee, which raised its view from ‘neutral’ to ‘buy,’ to lift the shares.
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Highwoods unloads in KC
Posted on at 2:15 pmThe developer has sold more than $60 million worth of older retail centers. For what it’s worth, none of the company’s properties in Nashville appear to be ‘non-core.’
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Pinnacle files to raise $150M
Posted on at 9:25 amThe largest bank headquartered in Nashville wants to hit up the market for what would be its biggest-ever capital raise. It’s more than likely that a chunk of the cash it raises will go toward repaying the $95 million it took on under TARP.
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Emery leaves Crescent
Posted on at 8:00 am
After more than a decade leading the development of large chunks of Cool Springs, Pat Emery is out at Crescent Resources and has launched his own shop.
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Two local companies in hunt for Ohio hospital
Posted on at 7:29 am
Franklin neighbors Community Health Systems and Capella Healthcare are showing an interest in Brown County General Hospital, a health system east of Cincinnati. According to the News Democrat based there, hospital officials earlier this year approached a number of nonprofit hospital operators about injecting some capital, but have now moved on to the money-making kind Nashville specializes in.
Any sale of the hospital will be subject to final approval of the Brown County Commissioners. “We’re not giving up on health care in the county,” BCGH Board of Trustees Chairman Eric Sontag said. “We’re trying to find somebody to work with us that will keep the same health care or improve it.”
Brown County has about 60 beds and annual revenues of about $40 million.
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The downside to Gaylord’s long-term booking strategy
Posted on at 7:20 amGoldman Sachs Steven Kent raised his ratings on the hotel sector Thursday, saying shrinking supply and cost cuts are helping operators weather the storm. The one exception to his optimism is none other than Gaylord. (Ticker: GET)
Kent noted that Gaylord’s contracts are typically booked one to three years in advance so discounts offered now may weigh on results over a longer-term period.
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How demand management can help the Music City Center
Posted on at 6:56 am
A site aimed at purchasing managers says they can help cut costs by shifting their meetings from pricy cities on the coasts to places like Nashville.
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Another sign Advocat is taking Bristol’s board challenge seriously
Posted on at 6:51 amChad McCurdy, the nursing home operator’s largest shareholder – and since last spring, a board member – says he has picked up a few more shares lately and goes to great lengths to say he supports the company-nominated director candidates over the challengers from Bristol Capital.
Being a large shareholder or having investment banking relationships does not by itself add additional value to our board. I have numerous relationships with investment bankers at very large and well respected firms as do other members of your board. We listen to what our current bankers tell and draw upon other relationships for further advice and counsel.
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Spring Hill workers vote for GM deal
Posted on at 6:17 amThe men and women of United Auto Workers Local 1853 have overwhelmingly approved the union’s proposed new deal with General Motors, which will give the UAW a stake in the company.
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Economist: Local jobless number may have peaked
Posted on May 28, 2009 at 2:58 pmOn the day the state’s jobless number edged closer to 10 percent, David Penn at MTSU says the local economy’s ‘dreadful’ first quarter may have been the worst we’ll see.
Initial claims have leveled off during the past several weeks, but this does not mean that the unemployment rate will soon begin to decline—far from it, as initial claims remain at a very high level. It does mean, however, that some of the upward pressure on unemployment has diminished; the high level of initial claims will continue to push the unemployment rate higher but not nearly as quickly as in the first quarter.
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