Shaky SunEdison in talks with lenders
SunEdison Inc., the teetering clean-energy giant, is talking with creditors about a loan to carry it through bankruptcy reorganization. It says there's "no assurance" a deal for a potential debtor-in-possession financing will materialize.
The disclosure Friday that it needs about $310 million to carry it through the middle of the year was the company's first public acknowledgment of restructuring talks that have shadowed it for almost a month. Restructuring financing or debtor-in-possession loans may give lenders control over a potential Chapter 11 bankruptcy process.
Companies that fail to line up such loans may be forced to allow lenders to credit-bid, or trade in outstanding loans for the company's assets, or to wind down through a liquidation. SunEdison hasn't said when or if it will seek bankruptcy court protection, and Ben Harborne, a spokesman, declined to comment.
SunEdison and its first- and second-lien lenders entered into confidentiality agreements on March 17 for the financing transactions in a potential bankruptcy filing, it disclosed in a regulatory filing Friday before regular trading began in New York.
-- Bloomberg News
Drillers idle 3 more rigs; 440 another low
HOUSTON, Texas -- The number of rigs exploring for oil and natural gas in the U.S. dropped by three this week to 440, again reaching an-time low as energy industry prices remain depressed.
A year ago, 954 rigs were active.
Houston oil-field services company Baker Hughes Inc. said Friday that 351 rigs sought oil and 89 explored for natural gas.
Among major oil- and gas-producing states, Texas lost three rigs and Alaska, North Dakota, Pennsylvania and Wyoming each dropped one.
New Mexico gained two rigs while Kansas and Louisiana gained one apiece.
Arkansas, California, Colorado, Ohio, Oklahoma, Utah and West Virginia were unchanged.
The U.S. rig count peaked at 4,530 in 1981. The previous low of 488 set in 1999 was eclipsed March 11, and has continued to dip.
-- The Associated Press
Norwegian Air's flight plan wins U.S. OK
DALLAS -- Norwegian Air Shuttle has won preliminary approval to expand flights between the United States and Europe using an Irish subsidiary.
The decision Friday by the U.S. Department of Transportation was a setback for the major U.S. airlines and their labor unions, who said the subsidiary will be an unfair, low-wage competitor on key trans-Atlantic routes.
The Transportation Department said it will take public comments before issuing a final order that could allow the Norwegian subsidiary to begin flying to the U.S.
Norwegian, a low-fare, no-frills airline, called the decision a victory for consumers and said it intended to hire U.S.-based crews.
-- The Associated Press
Apple dips on report of iPhone-output cut
Apple Inc. shares fell after it was reported that the company would extend an estimated 30 percent cut in iPhone production for another three months.
Slower-than-expected sales of the iPhone 6S and 6S Plus have prompted Apple to reduce its orders, the Nikkei Asian Review reported, citing unidentified suppliers. The shares dropped $2.25 or 2 percent to close at $109.85 in trading Friday on the New York Stock Exchange.
Apple introduced a smaller, cheaper handset branded the iPhone SE last month to plump up sales ahead of rolling out a new flagship model later this year. Taiwan Semiconductor Manufacturing Co., one of the biggest suppliers of chips to Apple, on Thursday forecast revenue below analysts' estimates for the second quarter, saying that demand for smartphones that cost more than $500 is waning.
In January, Apple said sales would decline for the first time in more than a decade.
-- Bloomberg News
Kansas college closes, files bankruptcy
KANSAS CITY, Mo. -- Kansas-based Wright Career College folded Friday, looking to liquidate its assets in bankruptcy after abruptly closing its five campuses in three states.
The Overland Park nonprofit filed for Chapter 7 bankruptcy in Kansas City, Kan., under its corporate name of Mission Group Kansas Inc. It estimated liabilities and assets each of $1 million to $10 million, and creditors numbering between 1,000 and 5,000.
The closures affect campuses in the Kansas cities of Overland Park and Wichita, as well as Omaha, Neb., and Tulsa and Oklahoma City in Oklahoma.
The college, which had roughly 3,000 students enrolled during the 2014-2015 fiscal year and in recent weeks stopped accepting new students, largely trained students for jobs as medical assistants, accountants and other business occupations.
Hundreds of Wright students and graduates have joined in a 2013 lawsuit against the college, accusing the school of "a systematic, deceptive marketing scheme" to entice students to enroll and apply for loans they can't pay back.
At the time it was filed, the company called the lawsuit's claims "absurd" and that the college never guaranteed students postgraduation employment.
The status of that lawsuit was not immediately clear Friday.
-- The Associated Press
For flouting rules, lender to pay $113M
WASHINGTON -- Freedom Mortgage agreed to pay the U.S. government $113 million to settle allegations that it failed to comply with federal rules.
The Justice Department said Friday that the New Jersey lender did not properly comply with Federal Housing Administration rules for mortgages it was generating and didn't monitor payment defaults.
The government says from 2006 to 2011, the company certified mortgage loans for Federal Housing Administration insurance that didn't meet federal requirements and so were not qualified for the insurance.
Freedom Mortgage was taking part in an agency program that left lenders, and not the government, responsible for ensuring mortgage compliance rules were followed.
Messages left with the company and its attorney were not immediately returned.
-- The Associated Press
Business on 04/16/2016