In brief: Mall company plans bankruptcy split
CHICAGO – Mall owner General Growth Properties Inc., which controls the Spokane Valley Mall, the NorthTown mall in Spokane and the Silver Lake Mall in Coeur d’Alene, said Tuesday that it filed a proposed reorganization plan with a federal bankruptcy court and expects to emerge from Chapter 11 protection this fall as two separate companies.
The real estate investment trust filed the nation’s largest real estate bankruptcy case in U.S. history 15 months ago.
When it exits Chapter 11 protection, shareholders will own stock in both General Growth and the newly formed Spinco.
A judge is expected to begin considering the plan in mid-August.
Investment fund excludes big banks
Chicago – Are “too-big-to-fail” banks just as bad as tobacco growers and alcohol producers?
A Chicago-based socially conscious mutual fund thinks so.
Last week Appleseed Fund began tarring too-big-to-fail banks with the same brush as pornographers, weapons makers and others when it announced that it has changed its screening criteria to also exclude Citigroup, Goldman Sachs, Morgan Stanley, Bank of America and JPMorgan Chase.
“Given the failure of regulators to prevent the credit crisis and the subsequent failure of legislators to break up the massive and interconnected banks that helped create the crisis, it’s incumbent on depositors and investors to vote with their wallets,” co-portfolio manager Adam Strauss said.
“Until the financial system is truly restructured,” Appleseed won’t invest in too-big-to-fail banks, choosing instead regional and community banks and credit unions, he said.
• General Electric Co. said Tuesday that it will pledge $200 million to fund new research and development projects meant to create a more energy-efficient and environmentally friendly power grid. GE and four venture capital firms will solicit ideas from entrepreneurs, researchers and startups over the next 10 weeks. Awards from the competition will be announced in November.
• About 137,000 pieces of imported children’s jewelry sold at two stores popular with preteen girls – Justice and Limited Too – were recalled Tuesday for high levels of cadmium, the latest in a series of recalls involving the toxic metal. The latest recall involves 19 different styles of necklaces, bracelets and earrings imported and distributed by Tween Brands, based in New Albany, Ohio. In addition to the two sets of retail stores, the items were sold online at www.shopjustice.com.
• Intel Corp. posted its largest income in a decade as the company benefits from a strengthening computer market and more sophisticated factories. The results topped Wall Street’s forecasts, and Intel raised its guidance. Intel reported after the market closed Tuesday that net income was $2.89 billion, or 51 cents per share, in the quarter ended June 26. That compares with a loss of $398 million, or 7 cents per share, a year ago.
• Yum Brands , the owner of the Taco Bell, Pizza Hut and KFC fast-food brands, says its second-quarter profit dipped slightly this year, but its adjusted results beat Wall Street’s expectations. The company raised its full-year outlook. Yum Brands said it earned $286 million, or 59 cents per share, for the quarter. Revenue rose 6 percent to $2.57 billion. A year earlier, it earned $303 million, or 63 cents per share.