Briefcase
MGM bankruptcy plan trades debt for rights to Bond, ‘Hobbit’ films
LOS ANGELES – Metro-Goldwyn-Mayer Inc. said Thursday that it has begun seeking its creditors’ approval on a prepackaged bankruptcy plan in which they will exchange more than $4 billion in debt for equity in a new company that has rights to the James Bond franchise and the upcoming two-part movie series “The Hobbit.”
Privately held production company Spyglass Entertainment, a co-financier of such recent films as “Star Trek” and “G.I. Joe: Rise of Cobra,” will contribute some assets and merge two subsidiaries into MGM for a 4.69 percent stake in the company, according to the plan.
Creditors would hold 95.3 percent of the company after it exits from Chapter 11.
Only approved holders of secured debt as of Oct. 4 will be allowed to vote. Voting continues until Oct. 22, when the company plans to file for bankruptcy and exit the court process in about 30 days.
Associated Press
PayPal, iPhone offer photo deposit
SAN FRANCISCO – Betting you wouldn’t trek to your bank or the closest ATM if you didn’t have to, PayPal has added a feature to its free iPhone application that lets users deposit checks into their PayPal accounts by taking a picture of them.
The online payment service owned by eBay Inc. launched the feature this week.
It lets you deposit a check by snapping a photo of its front and back with an iPhone. Once the funds show up in your PayPal account balance, they can be spent or transferred to a bank account.
PayPal recommends keeping the check for 15 days, just in case it doesn’t clear properly.
Associated Press
Pepsi guidance hurts shares
NEW YORK – PepsiCo Inc.’s third-quarter net income rose 12 percent on strong sales gains in drinks and Frito-Lay snacks abroad, and revenue rose 40 percent on international strength and added sales from the buyout of its major North American bottlers.
• The outlook: Pepsi lowered the top end of its guidance because of investments to expand its presence overseas. It also expects to be hurt by changes in currency exchange rates.
• The movement: Investors were displeased, sending shares down more than 3 percent. CEO Indra Nooyi says the company must invest in its future.
Associated Press
Alcoa says income off one-fifth
NEW YORK – Alcoa Inc. says its third quarter net income slid about 21 percent on lower metals prices during the period.
• The numbers: The Pittsburgh aluminum maker on Thursday reported net income of $61 million, or 6 cents per share, for the three-month period ended Sept. 30. That compares with earnings of $77 million, or 8 cents per share, for the same period last year. Revenue increased 14.6 percent to $5.3 billion.
• Expectations: The results beat Wall Street expectations of 5 cents a share on revenue of $4.95 billion.
Associated Press
Boeing beating ’09 deliveries
CHICAGO – Boeing Co. said on Thursday that it delivered 124 commercial airplanes during the third quarter, almost 10 percent more than last year.
Boeing has delivered 346 commercial planes so far this year.
The deliveries for the third quarter included 100 of its 737s. It makes more of those workhorse planes than any other model. It also delivered three of its 767s, and 21 777s.
Orders for Boeing commercial jets suffered last year during the recession. Now it’s planning on a recovery and has announced plans to increase production of the 737.
Associated Press