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HAWAII
Big Isle recycler blames closures on tardy state

HILO » A Big Island beverage container recycler has closed six of its eight redemption centers, saying the state is behind in its reimburse- ments for the nickel-per-container refunds.

The state Department of Health admitted yesterday that it got behind in paying Atlas Recycling, but said it has now caught up.

Atlas Recycling said Thursday that it had stopped operating its centers where consumers could get their nickel container deposits back in Hawi, Waikoloa, Honokaa, Pahala, Naalehu and Ocean View, while continuing to accept bottles and cans at its Hilo and Kona facilities.

"We have worked hard to earn the trust of people in these communities and have established a convenient location for customers to redeem their HI-5 beverage containers while offering schools an opportunity to raise money," company spokeswoman Willette Allen said.

"We are personally upset and emotional about closing these sites, but we have 10 employees that depend on our ability to stay in business," she said.

Atlas Recycling officials said they hoped to reopen the closed sites by May 1.

80 Ilikai units to go time-share

An 80-unit chunk of the 783-room Ilikai hotel in Waikiki has been sold and will be converted to time-share units.

Shell Vacations Club, based in Northbrook, Ill., said it bought the units this week to expand its time-share offerings for Shell's 90,000 members.

The company owns another four resorts in Kona and on Kauai and plans to open a preview center in Waikiki early this summer.

The 80 Ilikai units were renovated in 2002.

Military housing bonds rated 'AA'

Standard & Poor's Ratings Service has given an "AA" rating to $1.4 billion in military housing revenue bonds for Army Hawaii Family Housing LLC, which will help finance reconstruction of 7,894 units of housing for military personal on Oahu.

The agency said the credit quality of the bonds is strong because of the continued military presence in Hawaii, a tight housing market and high demand from military families.

S&P also gave an "A+" rating to a separate class of $71.3 million revenue bonds for the company.

NATION
Ford cuts profit forecast 29%

Ford Motor Co. cut its 2005 earnings forecast and said it won't reach a 2006 profit target because of rising gasoline prices and health-care costs. Standard & Poor's said it may drop Ford's credit rating to junk.

Ford, the second-largest U.S. automaker, yesterday reduced the 2005 forecast by as much as 29 percent and said in a statement that it will fall short of its 2006 target of $7 billion in pretax profits. Standard & Poor's responded 20 minutes later by cutting the outlook on Ford debt, rated at the BBB-, the lowest investment grade, to "negative" from "stable."

Ford and larger U.S. rival General Motors Corp. face downgrades to junk, or non-investment grade, because of falling profits caused by rising costs and market-share losses to Asian rivals such as Toyota Motor Corp.

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HAWAII
Big Isle's 3rd wind farm draws concerns over size

HILO » Construction of the Big Island's third wind farm is set to start next week, but some residents say the giant turbines will be too big.

The 16 wind turbines to be erected just above the airport at Upolu Point will stand 196 feet tall. Each will feature three rotating blades with a diameter of 154 feet.

Ed Michelman, a part-time resident of Hawi, claims the wind farm will violate the Hawaii County's General Plan, which lists coastal views from Akoni-Pule Highway as part of the island's "natural beauty" that should be preserved.

Hawi Renewable Development Inc.'s plans for its $20 million wind farm have been approved by the state Public Utilities Commission, and Mayor Harry Kim said Thursday that the facility meets all state and county land-use laws.

Once completed, the wind farm will produce a total of 10.6 megawatts, officials said.

Meanwhile, plans have been announced for a 30-megawatt wind farm on Maui that would be the largest wind energy project in the state.

Kaheawa Wind Power LLC expects to complete its $65 million wind farm in the first quarter of next year at Ukumehame on the southern slopes of the West Maui Mountains.

The project is anticipated to produce about 9 percent of Maui Electric Co.'s power, bringing to 15 percent the amount of energy provided by renewable sources.

NATION
Group faces uphill battle in ouster campaign

NEW YORK » The eight former executives and shareholders of Morgan Stanley seeking the ouster of Chief Executive Phil Purcell collectively own 11 million shares of the investment firm.

But that's just 1.1 percent of the total shares outstanding -- and doesn't begin to give them control of Morgan Stanley.

Former Morgan Stanley president and would-be CEO, Robert Scott, was on the road this past week, courting investor support for the so-called Group of Eight's campaign to oust Purcell on grounds the company has fallen behind other Wall Street firms in performance, profits and share price. A series of personnel changes over the week, seen by dissidents as a reward for Purcell loyalists, led the group to go public and take their case to shareholders.

But even among analysts and investors who agree that changes are needed at Morgan Stanley, there are doubts Scott and his colleagues can pull off what would likely be the biggest shareholder coup in history.

"The key here is in obtaining controlling interest of the firm," said Lehman Brothers analyst Mark Constant. "Do they have a controlling interest? No. How do they plan to get it? People who hold those shares are going to want something concrete before they give up their votes."

The dissident group began that task Wednesday, holding a meeting for institutional investors attended by about 150 people, according to two people, speaking on condition of anonymity, who attended the gathering. At the meeting, Scott detailed plans to increase Morgan Stanley's earnings by $2 billion to $4 billion per year through operational changes. A spokesman for the dissidents, Andrew Merrill, did not give details on Scott's proposals.