Business Briefs
Star-Bulletin staff
and wire services
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HAWAII
Hawaii to share in Enron payout
HOUSTON >>
Enron Corp. shareholders and investors, including pension plans from Hawaii, the University of California and New York City, will split about $7 billion from financial institutions accused of participating in the fraud that caused the once-mighty energy company to collapse.
The settlement amount was listed at $7.2 billion, a sum that has been accruing interest since 2002 and includes $688 million plus interest in attorneys fees.
The deal, approved late Monday by U.S. District Judge Melinda Harmon, and the attorneys fees are the largest in history in a U.S. securities fraud case.
About 1.5 million individuals and entities will be eligible to share in the distribution under the settlement plan. The attorneys fees will go to San Diego-based Coughlin Stoia Geller Rudman & Robbins LLP, the law firm representing the University of California, which was the lead plaintiff.
The distribution plan was part of a $40 billion lawsuit filed by shareholders and investors, who claim Bank of America, JPMorgan Chase & Co., Citigroup and others participated in the accounting fraud that led to Enron's downfall.
Calculating shares of the $7.2 billion will be determined by a formula that factors in such things as the stock's purchase price and the type of stock bought.
HEI to get up to $75M from bank
American Savings Bank said yesterday it will return up to $75 million to parent company
Hawaiian Electric Industries Inc. over the next several quarters after completing the restructuring of the bank's balance sheet through the sale of mortgage-related securities and agency notes, and the early extinguishment of certain borrowings.
In the third quarter, American Savings received regulatory approval from the Office of Thrift Supervision to pay a dividend to HEI of up to approximately $54.7 million in that quarter. HEI intends to use the dividend to reduce its short-term borrowings. American Savings anticipates returning to HEI additional capital of up to approximately $17 million, subject to OTS approval, as additional mortgage-related securities and agency notes mature in the coming months.
ASSOCIATED PRESS
Apple Inc. announced improvements to its popular iPod products at an event in San Francisco yesterday. Apple CEO Steve Jobs joked about the speculation on his health, kicking off the event by flashing a message on a screen that said, "The reports of my death are greatly exaggerated." Above, Jobs, left, talked with musician Jack Johnson, who performed at the event.
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S.F. agency lands Subway ad pact
J. Stokes & Associates said yesterday it has been selected as the advertising agency for
Subway restaurants in Hawaii.
The San Francisco-based agency said that with the addition of the 121 Subway restaurants in Hawaii that it now manages more than $11 million in advertising for approximately 1,100 Subway restaurants throughout the western United States.
ASSOCIATED PRESS
Overseas Success: International consumers spent more at McDonald's Corp. in August than Wall Street expected, leading the nation's No. 1 hamburger chain to surprise investors by posting an 8.5 percent rise in global same-store sales yesterday. In the United States, the gain was 4.5 percent. Above, customers were seen in January at a McDonald's in London.
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Brief Case
More cuts: Gannett Co., owner of the Honolulu Advertiser, is eliminating about 100 management jobs at its newspapers across the country on top of about 1,000 job cuts, including 600 layoffs, announced last month.
Feds in debt: The federal government will run a near-record deficit of $407 billion this year, according to the latest Capitol Hill estimates. The Congressional Budget Office released figures yesterday that indicate the red ink will spill over into next year, when the deficit would reach a record $438 billion.
Promotions
» Reynolds Recycling has announced the following new hires:
* Tai Vuniwai as corporate trainer. He was previously corporate trainer at Fral Tech Services in Vernal, Utah, and development trainer at Enterprise Rent-A-Car in Midvale, Utah.
* Robert Camello as site development manager. His previous jobs include senior stewarding manager for both Sheraton Waikiki Hotel and Royal Hawaiian Hotel, a housekeeping manager at Sheraton Waikiki Hotel, and assistant front office manager at New Otani Kaimana Beach Hotel.
» Outrigger Enterprises Group has named Teri Orton as general manager of the former OHANA Islander Waikiki. She will oversee the redevelopment of the hotel, which closed at the end of March as part of the company's $535 million Waikiki Beach Walk project. Her experience includes regional general manager and resort operations/asset manager for Anokona Development and general manager of W Honolulu-Diamond Head Hotel.
» Atlas Insurance Agency has promoted Lance Kawano to senior vice president of its personal lines division. He has 17 years experience in the insurance and finance businesses.
» Hawaii Preparatory Academy has named Steve Campbell as director of the Rutgers Tennis Center, effective Oct. 1. His experience includes tennis director and assistant general manager at Wyoming Athletic Club/Casper Country Club in Casper, Wyo., and head professional at Vic Braden Tennis College in Coto de Caza, Calif.
» The Pint Size Corp. has hired Brian Christensen as chief executive officer, effective Sept. 15. He replaces co-founder and current chief executive officer Clayton Kim, who will be retiring and remain as a minority owner and director. Christensen's 30 years of food industry experience includes president of C&S Wholesale Grocers, president of Fleming Companies, Hawaii Division, and store director at Foodland Supermarkets. He also is a board member of the Hawaii Food Bank and the Hawaii Food Industry Association.
» Prudential Locations has promoted Toan Doran to partner. He has been with the company for six years, specializing in residential and investment transactions, and working with first-time homebuyers, and international and mainland investors.
Awards
» Architects Hawaii project architect
Joel Ganotisi has received the LEED (Leadership in Energy and Environmental Design). The LEED designation is the nationally accepted benchmark that recognizes professionals for their understanding of design, construction and operation of green building practices.
BUSINESS PULSE