Citgo is trying desperately to raise enough money to continue operations. Image from Flickr.

Given the BP oil spill disaster, it is no surprise that oil-refining company Citgo is having problems getting financing. Originally, the company was looking to raise $1.5 billion by selling bonds. However, the business they are in combined with the fact the company is “exposed” to Venezuela made this sale a flop. Now, the company is turning to $2 billion in bank loans combined with just $300 million in bonds.

Bond sale fail

Citgo, which is the child company of Venezuelan PDVSA, has been running at a net operating loss for the first quarter of the year. In order to raise quick cash to run the company with, the company tried to sell $1.5 billion in bonds. Bonds are a group of individual little loans, where the company must repay the bond plus interest to investors. Citgos bonds were slated for 2017 maturity, meaning any investor who bought them would have to wait seven years to get paid back. Investors, though, were not interested.

Bank loans to the rescue

Because the pay day of bonds didn’t pan out, Citgo was forced to find other options for money loans. The company turned to banks and private money lenders, and it was able to raise $2 billion. That money is partially from new credit extended to the company, and partially from “extension of existing credit lines.” In other words, these lenders were willing to take on the risk of extending credit to Citgo. These lenders, however, have said that they are planning on turning these loans into bonds — in other words, spreading the risk out among many, many more investors.

Citgo’s operating loss

The operating loss that Citgo had over the last quarter is for many reasons. There is political instability in Venezuela, where Citgo’s parent company lives. Though Venezuela’s state-owned oil company does not do much offshore drilling, the BP oil spill is generally affecting the oil and fuel market. This instability within the market is contributing to companies like Citgo being unable to get financing to continue operations.

Silvio Berlusconi's possible reaction to his costly divorce from Veronica Lario. (Photo: Wikipedia)

As Italian Prime Minister Silvio Berlusconi well knows, divorce can be painful. Truly, it is it the ceremonial end of love, complete with all the bitter infighting and financial shenanigans one would expect from such dark comedy. One sides says all she wants is to be on equal footing following with her former mate, but everyone knows the truth is that she really wants to be more than equal. The other side – in this case Silvio Berlusconi – prepares to take it on the chin. However, as the British newspaper The Independent reports, Berlusconi made it all too easy for Ms. Marina Lario (formerly Veronica Berlusconi, one of Forbes 100 most powerful women) to file for separazione con addebito (“charge separation,” where Lario makes the claim that the marriage is irreparable because of Berlusconi’s actions).

Silvio Berlusconi worth more than $10 billion

A highly prosperous construction and media magnate in addition to being Italy’s Prime Minister, Silvio Berlusconi clearly has little need for private money lenders. But the 73-year-old does, apparently, need young women around him constantly, including a long list of call girls and lingerie model Noemi Letizia, who calls him “Daddy.” Berlusconi’s libido is legendary, and it caused him to stray from his wife at a breakneck pace. Those indiscretions, as well as a long list of unrelated legal problems, have made life more than interesting for Berlusconi. But even his misdealings weren’t enough to convince the Italian divorce court that Veronica Lario deserved $5.3 million per month in alimony. Instead, Lario, 53, will be receiving a somewhat lower monthly settlement, with one additional provision – she gains control of Silvio Berlusconi’s Villa Belvedere in Milan, which is valued at about $105 million. Lario currently lives there with the couple’s three children.

That’s what you get when you’re charged with ‘consorting with minors’

The 30-year marriage between the politician/media magnate and former actress has come to an end, and both parties have claimed in the media that they are “satisfied” with the decision of the court. Whether or not Silvio Berlusconi was “satisfied” by a string of underage women shall go rhetorically unanswered.

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The San Antonio refinery explosion happened at a refinery that had been cited for OSHA violations. Image from Flickr.

Wednesday morning, just a few hours after the Redstone Arsenal in Alabama exploded, a San Antonio refinery fire sent a plume of black smoke into the air. The San Antonio refinery fire started when an 18-wheeler truck being loaded with fuel exploded. The San Antonio refinery explosion set off a series of chain-reaction explosions at the refinery that lasted 45 minutes or more.

San Antonio refinery fire still burning

More than 100 firefighters and emergency responders were at the scene of the San Antonio refinery fire today. All residents within a half-mile of the explosion have been evacuated. The private money lenders and other financiers of AGE Refining, Inc., are set to lose hundreds of thousands of dollars. The plume of smoke from the fire could be seen from as far as 40 miles away. Given that the San Antonio refinery fire is fuel-based, it will likely burn very hot and for a very long time.

San Antonio refinery explosion started by 18-wheeler

The San Antonio refinery explosion was started by an 18-wheeler truck. The truck was in a loading dock, being pumped full of fuel, when it exploded. This set off a chain reaction of explosions within the refinery and started a fire that is expected to burn for several days. Hazmat crews and firefighters were working to shut off the valves that were still pumping fuel after the fire began.

OSHA violations before the San Antonio refinery explosion

Before the San Antonio refinery fire this morning, AGE Refining, Inc., had been cited several times for safety violations. In 2007, the San Antonio refinery was fined for 13 “serious violations.” According to the Occupational Health and Safety Administration, those 13 violations remain “current.” The only refinery in San Antonio, AGE Refining provides jet fuel and diesel to the U.S. Air Force and other customers.

See reports on the San Antonio refinery fire

Sources:

NPR News
My San Antonio
Kens5.com

Online personal loans: cash till payday

How much do you need? You can get as much as $1,500, you’ll be glad to know. The application is secure and confidential, and you can get a direct deposit in as little as two hours after you hit the apply button. That’s instant cash.

Money now for unexpected expenses

Installment loans for bad credit can give you cash till payday to solve your unexpected money problems.

Let’s say you had an accident and face surprise medical expenses. Or the plumbing breaks and you have to fix it no matter what, even if it means you won’t have money left for your car payment or groceries until next payday. It’s a dilemma. What are you going to do, leave an injury untreated so you can drive to work? Or shut off the water just so you can eat?

How do installment loans for bad credit work?

Thanks to installment loans for bad credit, you can get an online cash advance, and you won’t have to make those hard choices. All you have to do is click the apply button and fill out the personal loan application. Have your driver’s license and checkbook handy, plus your social security number in order to protect and ensure your identity. You can do it all online – a no fax cash advance. That’s it! Then you can relax. In a few hours you will have your quick personal loan.

Benefits of personal installment loans?

Personal installment loans are loans with a fixed number of payments. Many people who borrow money prefer personal installment loans over pay day loans, because this type of cash loan offers more time to repay, instead of all at once. Better yet, if you repay an installment loan before its final date, there’s no penalty and less interest. Starting a credit history and saving money on interest are a couple more reasons why a personal installment loan for bad credit is a great option when you need money now. You get the fast cash you need to take care of financial emergencies, plus you can climb the ladder from no credit or bad credit to good credit. It’s easy to get started. Simply apply now.

Start your fast application for online personal loans HERE!

Michael Skakel's appeal of his conviction for Martha Moxley's murder was turned down by the state Supreme Court today. Image from Flickr.

Michael Skakel, the nephew of Robert Kennedy’s widow Ethel, was denied his fifth appeal today. Michael Skakel was convicted of the 1975 murder of Martha Moxley, his brother’s girlfriend. Michael Skakel has never confessed to Martha Moxley’s murder, and this latest appeal was based on the implication that two other men may have been responsible. Michael Skakel has spent a significant amount of emergency money on his defense and appeals, though none have been successful.

Michael Skakel’s alleged murder of Martha Moxley

Allegedly, Michael Skakel beat Martha Moxley to death with a golf club. Michael Skakel was not indicted in the murder until 2000, 15 years after the alleged crime. In 1998, a nonfiction book about the murder, Murder in Greenwich, named Michael Skakel as the probable killer. Michael Skakel claimed that during Martha Moxley’s murder, he was at his cousin’s house.

The trial of Michael Skakel

During Michael Skakel’s 2002 trial for Martha Moxley’s murder, the prosecution extensively used research that had been done for the Murder in Greenwich book. Taped book proposals were used with heavy editing that seemed to indicated Skakel had confessed to the murder. Michael Skakel had been quoted by several classmates as saying “I’m a Kennedy, I can get away with murder.” Michael Skakel had also admitted to being in the tree that Martha Moxley was found under the next morning. On June 7, 2002, Michael Skakel was convicted of Martha Moxley’s murder.

Michael Skakel’s appeals

Michael Skakel has filed multiple appeals in his conviction for Martha Moxley’s murder. Using private money lenders and money from supporters, Michael Skakel has appealed to the Connecticut Supreme Court and the Federal Supreme Court multiple times. The first appeal claimed that the statute of limitations had expired and that there had been prosecutorial misconduct. The United States Supreme Court declined to hear the case in 2006. In 2007, new evidence seemed to emerge, though the Superior court denied request for new trial. This decision was appealed to the Connecticut Supreme Court, who also denied the appeal.

Michael Skakel’s new evidence

In 2003, a videotaped interview with a private investigator came to light where Tony Bryant pointed the finger for Martha Moxley’s murder at two other men. Both Tony Bryant and the two men that he implicated have invoked the fifth amendment. Both the appeal for a new trial and the decision that the Connecticut Supreme Court handed down today were based on the fact that Tony Bryant’s testimony was hearsay. Michael Skakel’s last remaining chance to have this evidence re-heard is currently pending in federal court.

Sources:

Wall Street Journal at http://online.wsj.com/article/SB10001424052702303828304575179930235622468.html?mod=googlenews_wsj
CNN
Associated Press at http://www.boston.com/news/local/connecticut/articles/2007/10/25/attorney_judge_denies_skakels_bid_for_a_new_trial/

Before most legislation is passed, the CBO has a chance to review it. Image from Wikimedia Commons.

When any bill that affects the federal budget begins to make its way through Congress, it makes a stop that, more often than not, the public does not see. The Congressional Budget Office is an independent, non-profit governmental agency that reports to Congress, but is not controlled by Congress. The Congressional Budget Office reviews the estimated effects of all legislation – saying if the legislation will require the government to borrow money, be budget-neutral, or save money. The CBO report can make or break legislation – and the CBO report on healthcare has put an unusual spotlight on this office. So how does the CBO work, and what does the latest CBO report on health care say?

How does the Congressional Budget Office work?

The CBO was created in 1974 with the passage of the Congressional Budget and Impoundment Control Act. The Speaker of the House of Representatives and President pro tempore of the Senate jointly appoint the director of the CBO for a four-year term. It is the job of the CBO to issue periodic reports about fiscal policy, to provide projections about the current budget, and to analyze the effect proposed legislation would have on the national budget and national debt, as requested by members of Congress.

To this end, the Congressional Budget Office employs an army of accountants and fiscal analysts who study everything from tax debt to private money lenders. The CBO was created to be non-partisan and independent of Congress, so the reports it issues would not be as easily altered by the political maneuvering in Congress.

The CBO stance on health care reform

The Congressional Budget Office does not officially take political stances. Instead, it provides objective financial analysis related to the bills currently in Congress. However, the CBO is allowed to state facts as its reports see them. On the CBO Health wesbsite, the header states:

The federal budget is on an unsustainable path, primarily because of the rising cost of health care and the aging of the U.S. population.

As reported by the Washington Post, the most recent CBO report on heath care – which is due to be officially released later today – indicates that the reconciled Senate health care bill finds that that particular bill would cut the U.S. deficit by $1.3 trillion over 20 years, and would cover 95 percent of U.S. citizens.

Getting more information about the Congressional Budget Office

The CBO is a huge governmental agency that issues a number of reports, estimates, and opinions throughout the year. If you would like to get more information about the CBO, its stance on health care, or see a copy of CBO reports, you can start with the Congressional Budget Office web site. Get a copy of any CBO publication on the publications page. Full cost estimates are also available on the Cost Estimates site. To contact the Congressional Budget Office, you can email them at communications@cbo.gov or call 202-226-2602.

Federal Reserve building, Washington, D.C.

Federal Reserve Chairman Ben S. Bernanke opposes a draft bill now in the Senate which would remove much of the central bank’s supervisory role and limit its authority to regulation of large bank holding companies. The bill, proposed by Senate Banking Committee Chairman Christopher Dodd, would limit the Fed’s supervisory authority to banks with more than $50 billion in assets. Smaller banks would be regulated by the FDIC and the Office of the Comptroller of the Currency. By contrast, under a House version of the bill, the Federal Reserve would keep most of its bank supervisory duties.  Neither bill would have any bearing on personal installment loans from private money lenders.

Bernanke: Fed promotes stability

Bernanke told the House Financial Services Committee that the central bank does not want the responsibility of regulating only those banks that are “too big to fail.” CNN Money quotes Bernanke as saying that the Fed’s oversight of all banks “significantly improves its ability to carry out its central banking functions, including making monetary policy, lending through the discount window, and fostering financial stability.” According to Business Week, Bernanke contends that the Fed is “uniquely suited to supervise large, complex financial organizations and to address both safety and soundness risks and risks to the stability of the financial system as a whole.”

Dodd: Continued risk of bailouts promotes instability

Dodd, who has been highly critical of the Fed’s banking supervision, hopes the proposed bill will prevent future crises requiring taxpayer-funded bailouts of large banking firms. Bernanke, however, believes that the central bank should retain oversight of banks of all sizes.

The Federal Reserve currently oversees about 5,000 bank holding companies and about 850 state member banks. Supervisory authority is delegated to 12 regional Fed banks by the Board of Governors in Washington. Under Dodd’s draft bill, the Fed would supervise only about 35 of the largest financial institutions. Legislators are scheduled to review and amend Dodd’s draft bill on March 22.

NorthgateArinso operates many call centers. Photo from Flickr.

In a live webcast this morning, NorthgateArinso, a British-owned Human Resources Management firm announced that it will be purchasing the HR division of US-owned Convergys (NYSE: CVG). This purchase will add 2,300 employees to NorthgateArinso’s staff of 5,000. The $100 million price tag means Convergys will be getting a quick payday from NorthgateArinso. NorthgateArinso’s purchase will also help Convergys’ plans to refocus is business strategy on its customer-care and information management divisions.

NorthgateArinso focuses on Human Resources services

NorthgateArinso’s main business is Human Resources management for a wide variety of clients. On NorthgateArinso’s website, they point out that these services include recruiting, training, payroll services, and HR software. They have clients and business operations in 31 countries and service almost one-fifth of Fortune 500 international companies, including AstraZenea and Cadbury.

Convergys focuses on Customer Care services

Convergys is a much larger company than NorthgateArinso, with over 75,000 employees. Their two main businesses focus on managing customers and information. According to the Convergys website their business includes providing customer support in 35 languages for many large and small companies, include General Motors and Comcast.

NorthgateArinso will become 2nd largest provider

With the purchase of Convergys’ HR division, NorthgateArinso will be vaulting past Oracle to become the 2nd largest provider of Human Resources outsourcing in the world. According to the Times Online, when this purchase completes in the 2nd quarter of the year, NorthgateArinso will be taking on at least some of the HR duties for large companies such as Dupont, Johnson & Johnson, and Honeywell.

Convergys recently NorthgateArinso-purchased division

The CEO of Northgate stated in this morning’s webcast (available here) that while the HR division of Convergys had lost over $500 million in the last few years, the division had been recently restructured and NorthgateArinso will only be purchasing the profitable parts of the company.

The Stock Outlook for the NorthgateArinso purchase

NorthgateArinso is owned by Northgate Information Solutions, a software company listed on the London Stock Exchange as NIS. Their stock price has remained steady over the last few years at about 95.25 – and according to Personnel Today, private money lenders and equity firms have invested significant amounts of cash in the company. Convergys’ press release also states that they expect this sale will lead to stock earnings.

Old Country Buffet filed for Chapter 11 in January 2008, but emerged with reduced debt in April 2009.

People say recession sparks innovation, creativity, responsibility, and all other sorts of optimistic-sounding things. It also causes failure, collapse, bankruptcy and all other sorts of apocalyptic-sounding things.

It also causes complications, such as leaving franchise owners to figure out how to deal when their parent company goes bankrupt. Sometimes the parent company manages to get back on its feet, and sometimes it shuts down. Either way, the franchise owner is still responsible for his or her store, and left with the decision of what to do when selling a tarnished brand.

CNN Money published a list of franchises that went bankrupt since the recession became official. Some came back and some didn’t.

Mrs. Fields Famous

The Mrs. Fields Famous brand, based in Salt Lake City, Utah, is the parent to 1,200 Mrs Fields Cookies and TCBY stores. Last August, the company filed for Chapter 11.

Lucky for the franchises,  which continued to operate throughout the bankruptcy proceedings, only a couple of months later,the company was on the road to recovery. I don’t know if they  used private money lenders or what, but it  managed to restructure its $196 million in debt down to $50 million.

Cork and Olive

Small Florida parent company Cork and Olive wasn’t so lucky. Cork and Olive, which was made of eight company stores and nine franchises, filed for bankruptcy in June 2008.

The company stores shut down, but the franchises are still soldiering on. CNN Money reports that “the franchisees meet regularly to discuss how to keep their brand alive without the parent company.”

Bennigan’s

Texas-based family dining restaurant Bennigan’s filed for Chapter 7 bankruptcy — that’s right, the bad kind — in July 2008. All of the corporate locations were shut down. CNN Money says:

Its 138 franchisees were left in PR hell, struggling to convince patrons that they were still open for business.

However, private equity firm Atalaya Capital company acquired the brand in October and reopened the corporate stores quickly, many of which are now operated as franchises.

Bally Total Fitness

This gym just can’t seem to catch a break. The nationwide franchise, based in Chicago, has filed for bankruptcy more than once. CNN Money reports:

It was a déjà vu for the health club chain in December 2008 when it filed for Chapter 11, a mere 14 months after emerging from its first Chapter 11 filing in July 2007. Just weeks ago, Bally signed an agreement to emerge from bankruptcy by restructuring the $1.5 billion in debt it had accrued and by granting 94% of the company’s equity to lenders such as J.P. Morgan.

Fatburger

This one gets a little complicated. Two subsidiaries of Fatburger Corp, Fatburger Restaurants in California and Fatburger Restaurants in Nevada, filed for bankruptcy in April. However, parent company Fatburger Corp. did not file for bankruptcy. Confusing matters more, that parent company, Fatburger Corp., is based in California.

Furthermore, Fatburger Restaurants in California and Fatburger Restaurants in Nevada accounted for 72 percent of Fatburger Corp’s total revenue. So what now? Good question. CNN says “The company’s 90 franchise owners are waiting to see what happens next.”