August 26, 2008 in Business

Delta Air Lines taps line of credit

 

Delta Air Lines Inc. said Monday it has drawn $1 billion from a credit line to give it more financial flexibility as it heads toward completion of its buyout of Northwest Airlines Corp.

The Atlanta-based company, which disclosed that its liquidity declined by $600 million in July, also said it has reached a deal to extend an agreement with one of its credit card processors.

Los Angeles

MGM denies report owners looking to sell

Metro-Goldwyn-Mayer Studios Inc. said Monday it is “not for sale” following a report in BusinessWeek that MGM’s owners were looking to sell the movie company for $5.2 billion.

The studio was taken private for nearly $5 billion in 2005 by Providence Equity Partners, TPG, Sony Corp. of America and Comcast Corp.

The company said its owners were committed to growing the studio, but that it has retained Goldman Sachs to enhance its long-term capital structure.

NEW YORK

Mortgage industry says fraud jumps 42 percent

Reported incidents of mortgage fraud jumped 42 percent nationwide, with Florida reporting the highest number of cases, according to industry data released Monday.

Properties in the Sunshine State accounted for nearly a quarter of all mortgage fraud incidents, the Mortgage Asset Research Institute said. California ranked second.

The report is based on data submitted by MARI subscribers about loans that were originated in the first quarter.

WASHINGTON

Fannie, Freddie shares stage a turnaround

Shares of Fannie Mae and Freddie Mac soared Monday in a respite from their battering in recent days.

Freddie completed a $2 billion debt sale, and a Wall Street analyst said a government bailout of the mortgage finance giants may not be inevitable.

But a few regional banks with significant holdings in Fannie and Freddie preferred stocks followed the rest of the market down amid questions over possible federal intervention.

From wire reports

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