Business & Finance
Facing possible liquidation, US Airways dodged its latest crisis after three lenders agreed to extend the terms of their financing arrangements - set to end Friday - to mid-January, The Wall Street Journal reported. The federal Air Transportation Stabilization Board, Bank of America, and Retirement Systems of Alabama all agreed to let the carrier fund its operations by using a portion of the cash it has on hand in the absence of conventional bankruptcy financing. The new deal, which is subject to approval by a bankruptcy court, will require a minimum of unrestricted cash at the end of each week, the Journal said, citing sources familiar with the matter. Word of the agreement came as the National Business Travel Association, which promotes links between corporate travel departments and legislators, prepared to ask Congress to draft a contingency plan for maintaining air transport infrastructure in the event that two or three airlines liquidate in the next 12 months. US Airways and United already are in bankruptcy proceedings, and Delta reportedly is teetering on the brink.
General Motors is expected to announce Thursday that it will cut roughly 12,000 jobs - all of them in Europe, the Financial Times reported. Citing a "GM insider," it said more than half of the layoffs will come in Germany, although no plant closures are planned for now. The auto-maker is aiming to save $500 million a year in costs, the Financial Times said. GM's European division is projected to lose a net $469 million this year, according to banking giant Morgan Stanley. GM's workforce in Europe currently numbers 62,000 people.
INPEX Corp. won the OK from regulators to launch a $1.4 billion initial public offering next month, the third-largest in Japan this year. The company, which is half-owned by the Tokyo government, explores for oil and natural gas overseas to help offset the lack of such resources at home. Shares will be priced Nov. 8, and INPEX will make its debut on the Tokyo Stock Exchange Nov. 17, the Financial Times said.