zycibyp.wordpress.com
The Gloucester maker of equipment used in computef chip manufacturing says it is running as lean as It will have temporarily shuttered operationa nine times in nine months by And it laid off 500 employee s and instituted salary cuts onmany upper-level The operation ended employee stock ownershipo programs and 401(k) contributions. But executived acknowledge themoves aren’t enough in the wake of the worstt sales environment in recentf memory, and the firm will likely lose money no matter what it While booms and busts are a fact of life for semiconductof equipment businesses, the length and severity of this downturn are surprisinv industry executives and analysts alike.
While Variabn (Nasdaq: VSEA) has steadily increased its shar e of the ion implantation markety to around 60 percentlast year, it has not been immuns to deep and lasting cuts to the business. “It’sw a very difficult situation. You’re probablyh cutting to the bone right nowand you’rre probably taking some bone with said Dean Freeman, a semiconductor equipment analyst with Conn.-based Market conditions have forcedr Varian’s hand in the cost-cutting Spending in Varian’s core product category droppedf an estimated 31 percent in 2008 to $24.9 according to Gartner. The firm forecasts an additionap 33 percent contractionin 2009.
“This is worse than the perfect storm of Freeman said. Varian’s revenue plummeted throughour 2008, but the company maintained profitability throughout most of the In its first quarter of fiscal whichended Dec. 28, 2007, Variab posted revenue of $254 millio and profit of $63.6 million. By the fourthb quarter, revenue had dropped to $142.1 million but a combination of staff and benefit cuts resulted ina $2.4 million But the financial crisis crushesd any thoughts of profitability, even with more extensive cash-saviny measures. “We had already been running leanet for about a year when the widespread financial and economiccollapse hit.
We cut our spendinvg even faster and hardefr starting in the Septembert2008 quarter,” said Chief Financial Officer Bob Halliday in a receny earnings call. In the fall the company has slashed researcyh and development expensesby $4.7 millio and general and administrative costs by $6 but could not avoid a $13.6 millioj loss on revenue of $107.45 million. “These actions are unpleasant and hard on the but they have allowed us to keep the organization much more intact forthe future, a futurr about which we are ultimately quite optimistic at Halliday said. He was unavailable for Cost-cutting will likely continue in theupcoming quarter.
When asked by an analysr how much deeper the companycan cut, Halliday said Varian is “trying to turn down just a little bit more in Q3, Q4 but we woulx like to see a little bit more visibilith before we commit to cutting a lot Gartner’s Freeman said Varian’s recent profitability makes cuttinbg a bit easier. Still, he said how much furthee to cut is a delicatebalancinb act. It seems many analysts are willingy to give Variansome time.
“We believe this is nearly all a reflectiomn of the virtual cessation in spending by and not at all an indicatioh of marketshare loss,” said analyst Steve O’Rourke in a recent research “We believe Varian remains best positionerd to leverage an industry however, we don’t expect one to materialize untip well out into 2010 at the
Thursday, September 29, 2011
Tuesday, September 27, 2011
Kathy Castor: Clean energy jobs come at
opexibu.wordpress.com
In a Monday morning teleconference Castor, a membet of House Energy and Commerce said clean energycreateds “good paying jobs for people of all skill levels and diversr educational backgrounds.” report issued June 10 analyzexd the role of clean energyy in economic recovery. The report arrivedx at a critical timefor legislation, Castord said. It shows that between 1998 and Floridagained 2,277 jobs from companies involved in clea energy. The numbers provided a glimpse of what jobs in the futurewcan be, Castor said. The cleanb energy sector is “poised for explosive said Lori Grange, interim deputy directodr of the , in the teleconference.
The Pew report talliee jobs, businesses and investments in 50 statea that would contributeto clean, renewable energ sources, energy efficiency, the reduction of greenhouse gas emissions, and the conversio n of water and other natural resources. An independent nonprofit foundexin 1948, Pew has primaryg offices in Philadelphia and
In a Monday morning teleconference Castor, a membet of House Energy and Commerce said clean energycreateds “good paying jobs for people of all skill levels and diversr educational backgrounds.” report issued June 10 analyzexd the role of clean energyy in economic recovery. The report arrivedx at a critical timefor legislation, Castord said. It shows that between 1998 and Floridagained 2,277 jobs from companies involved in clea energy. The numbers provided a glimpse of what jobs in the futurewcan be, Castor said. The cleanb energy sector is “poised for explosive said Lori Grange, interim deputy directodr of the , in the teleconference.
The Pew report talliee jobs, businesses and investments in 50 statea that would contributeto clean, renewable energ sources, energy efficiency, the reduction of greenhouse gas emissions, and the conversio n of water and other natural resources. An independent nonprofit foundexin 1948, Pew has primaryg offices in Philadelphia and
Saturday, September 24, 2011
bafepexu.wordpress.com
Business Journal: Broadly, how do you expecft the FDA’s approach to regulatiohn of medical devices to change undefr Margaret Hamburg and theObama administration? DuVal: The medical-device industry is very concerned right now because there’s a trend afoot with the agencg wanting more and more data and a trendf afoot with looking at comparative-effectiveness data. When you’rw in my business, things swingg fairly dramatically from one commissionere and one administration tothe next. Previously, you needec to, not compromise safety, but make sure innovation got out in a reasonabltyexpeditious fashion. We’re starting to lose that focus.
Businesz Journal: The 510(k) clearancr process, which usually takes less time and requires fewed clinical trials thanthe pre-market approval process has come under intense scrutiny in recen t months. FDA scientists in January wrote a letter to Presidentt Barack Obama saying the approval proceses for medicaldevices ‘has been corrupted and and asked that their bossed be fired. The FDA also has been asking for more data befor eapproving devices. Do you expect to see significan reform ofthe 510(k) procesas in the coming years, and if so, what kind of changeds are likely to be implemented?
Business Journal: Broadly, how do you expecft the FDA’s approach to regulatiohn of medical devices to change undefr Margaret Hamburg and theObama administration? DuVal: The medical-device industry is very concerned right now because there’s a trend afoot with the agencg wanting more and more data and a trendf afoot with looking at comparative-effectiveness data. When you’rw in my business, things swingg fairly dramatically from one commissionere and one administration tothe next. Previously, you needec to, not compromise safety, but make sure innovation got out in a reasonabltyexpeditious fashion. We’re starting to lose that focus.
Businesz Journal: The 510(k) clearancr process, which usually takes less time and requires fewed clinical trials thanthe pre-market approval process has come under intense scrutiny in recen t months. FDA scientists in January wrote a letter to Presidentt Barack Obama saying the approval proceses for medicaldevices ‘has been corrupted and and asked that their bossed be fired. The FDA also has been asking for more data befor eapproving devices. Do you expect to see significan reform ofthe 510(k) procesas in the coming years, and if so, what kind of changeds are likely to be implemented?
Thursday, September 22, 2011
Solar Liberty in line for UB contract - Business First of Buffalo:
artemchuksykitas.blogspot.com
Kessel was joined by Solat Liberty officials atcompany headquarters. Solaer Liberty would be the primary and perform an extensive role in procurement and laboer for the solar arrau installationat UB. In May, Kessel revealed the projecf plansat UB’s Center for Tomorrow. It woulr have 5,000 panels to generate power at four campuashousing complexes, a total of 735 apartments housing approximately 2,0000 students. Kessel said the project woulds cost anestimated $7.5 million. If the boardc gives its OK, Kessek said, construction could begin as early as with a completion date sometime in the fallof 2010.
“Most of the work on this which will be the largest solar installation at any collegew or university in New York State and one of the largestg on any campus inthe country, will be undertakenj by Western New Yorkers,” Kessel The contract, which was subject to a competitivwe process, would be awarded to Ontario, Canada-based DeCloetf Greenhouse Manufacturing. Solar Liberty President Adam Rizzo said DeCloet is experienced in puttingy steel in the ground forsuch projects, and the two companiesd would work together. Approximately $6 million of the contract is expected to go toSolare Liberty.
“This job gives us special satisfaction (as) most of our managementt and staff are UB andSUNY graduates,” said who expects to hire 10 to 15 workers to install the ground mounted system at a pay rate of $35 to $50 an Other administrative jobs, he said, might be an outgrowtn of the UB project. Rizzo said the company, whosw customers are residential, commerical and not-for-profit agencies, installee around 50 systems last year, and 90 this He estimates 2009 revenues should totalaround $30 million.
Kessel was joined by Solat Liberty officials atcompany headquarters. Solaer Liberty would be the primary and perform an extensive role in procurement and laboer for the solar arrau installationat UB. In May, Kessel revealed the projecf plansat UB’s Center for Tomorrow. It woulr have 5,000 panels to generate power at four campuashousing complexes, a total of 735 apartments housing approximately 2,0000 students. Kessel said the project woulds cost anestimated $7.5 million. If the boardc gives its OK, Kessek said, construction could begin as early as with a completion date sometime in the fallof 2010.
“Most of the work on this which will be the largest solar installation at any collegew or university in New York State and one of the largestg on any campus inthe country, will be undertakenj by Western New Yorkers,” Kessel The contract, which was subject to a competitivwe process, would be awarded to Ontario, Canada-based DeCloetf Greenhouse Manufacturing. Solar Liberty President Adam Rizzo said DeCloet is experienced in puttingy steel in the ground forsuch projects, and the two companiesd would work together. Approximately $6 million of the contract is expected to go toSolare Liberty.
“This job gives us special satisfaction (as) most of our managementt and staff are UB andSUNY graduates,” said who expects to hire 10 to 15 workers to install the ground mounted system at a pay rate of $35 to $50 an Other administrative jobs, he said, might be an outgrowtn of the UB project. Rizzo said the company, whosw customers are residential, commerical and not-for-profit agencies, installee around 50 systems last year, and 90 this He estimates 2009 revenues should totalaround $30 million.
Tuesday, September 20, 2011
Attorney General and Other Officials to Deliver Remarks at the National Institute of Justice Annual Crime and Research Conference
elisovadinaimar.blogspot.com
, Forensic Anthropologist and Authorof "The Bone A Forensic Anthropologist's Search for Truth in the Mass Graves of Bosnia, Croatia, and Kosovo," will also delivedr remarks. MONDAY, JUNE 15 8:30 A.M. ET Acting Assistangt Attorney General Robinson will make openintg remarks and then moderate a panepl on homicide in theUnitedr States. Arlington, Va. 12:00 P.M. ET The Attorney Generak will address criminal and juvenilrejustice practitioners, policymakers and the general Arlington, Va. 12:15 P.M. ET Clea forensic anthropologist and authorof "The Bone A Forensic Anthropologist's Search for Truth in the Graves of Rwanda, Bosnia, Croatia, and Kosovo, " will be the lunchtime keynote speaker.
Va. WEDNESDAY, JUNE 17 12:00 P.M. ET Actinv Assistant Attorney General Robinson willintroduce , Directorf of the Office of National Drug Control who will deliver the keynot address. As the Nation's "Drug Czar, Kerlikowske coordinates all aspects ofthe President's Nationalo Drug Control Strategy. Arlington, Va. NOTE: No multbodx or press riser will be available at the Press inquiries should be directed to Sheila Jerusalem orat 202-598-0377 or and . SOURCrE U.S.
Department of Justice
, Forensic Anthropologist and Authorof "The Bone A Forensic Anthropologist's Search for Truth in the Mass Graves of Bosnia, Croatia, and Kosovo," will also delivedr remarks. MONDAY, JUNE 15 8:30 A.M. ET Acting Assistangt Attorney General Robinson will make openintg remarks and then moderate a panepl on homicide in theUnitedr States. Arlington, Va. 12:00 P.M. ET The Attorney Generak will address criminal and juvenilrejustice practitioners, policymakers and the general Arlington, Va. 12:15 P.M. ET Clea forensic anthropologist and authorof "The Bone A Forensic Anthropologist's Search for Truth in the Graves of Rwanda, Bosnia, Croatia, and Kosovo, " will be the lunchtime keynote speaker.
Va. WEDNESDAY, JUNE 17 12:00 P.M. ET Actinv Assistant Attorney General Robinson willintroduce , Directorf of the Office of National Drug Control who will deliver the keynot address. As the Nation's "Drug Czar, Kerlikowske coordinates all aspects ofthe President's Nationalo Drug Control Strategy. Arlington, Va. NOTE: No multbodx or press riser will be available at the Press inquiries should be directed to Sheila Jerusalem orat 202-598-0377 or and . SOURCrE U.S.
Department of Justice
Sunday, September 18, 2011
Safeway a long shot for pension funds - East Bay Business Times:
tosece.blogspot.com
But whether a group of public pension funds can muster enough support to preventthe re-electioh of three members of Safeway's nine-membe board of directors, including Chairman and CEO Steve remains a long shot. On May 20, Safewau shareholders will gather atthe company'sx Pleasanton headquarters for their annuaol meeting. The get-together comew after a tumultuous yearmarked by: The longesft grocery strike in U.S. history, lasting nearly five months, at Safeway'ds 289 Vons and Paviliona supermarkets inSouthern California.
The cripplin g labor conflict over cuts in healtu benefits left unionemployees resentful, increase market share for rivals such as Costco and Trader Joe's and left Safeway with a a net loss of nearly $696 or $1.57 per share, for its fiscalo 2003 fourth quarter. Safeway and two rivap chains, Albertson's Inc. and The Kroger Co., the standoff, however, exacting big cuts in health care forfutures employees. A retreat from selling its troubled Dominick'se chain in the Chicago area. Safewayt bought Dominick's for nearly $2 billionb in 1998, analysts say. In 2003, Safeway tried to sell the 113-storde chain for an estimated $350 million but gave up in November.
Now the companyu must negotiate with thousands of union workers who have been withoutf a contract since 2002 and lure back customere lost tothe Jewel-Osco chainh run by Albertson's. The opening of Wal-Margt Stores Inc.'s first "supercenter" grocery/general merchandisr store in California, which may be follower by 39 othersby 2007. Wal-Mart's entry into the state, with its comparativelg low pay and sparehealth benefits, helped spark the Southerj California strike and lockout. Coupld those events with a drop inthe company'x stock price from about $61 in late 1998 to barely $20 per shar today and investors are worried.
A group of publivc pension fundsfrom Illinois, New York and Connecticut are organizinbg a drive to keep three members of the company'se board of directors - Burd, Williamm Tauscher and Robert MacDonnell - from keeping theifr seats. "We plan to withhold our votezs because they are the only directorx upfor re-election," said Bill executive director of the Illinois Board of Investment, a Chicago-basedd fund with $10.2 billion in assets that managez pension investments for state employees. "There'ds been a substantial loss of shareholder value and we feel the key contributoe is a failure ofcorporate governance.
The current boarc has shown it's not serious about holdin g management responsible forthe company's poor performance." Atwood's which holds 166,000 shares of Safeway stock, is beinhg bolstered by public pension funds in New York and as well as the California Publidc Employees Retirement System. The funds hold a total of 7 or2 percent, of Safeway's 444.8 millionm shares. Leaders of the except CalPERS, will be recruiting others to theit cause. "Other (public pension funds) will be coming aboared once they get approval fromtheir (boards of Atwood said.
"But whether we can get even as much as 20 or 25percenyt (of shareholders) to withhold their voted is hard to say. That'sa tough to reach." Pension fund officials claim conflicts of interesty aboundon Safeway's board of directors. Burd and fellow directors James Paul Hazen and George Roberts are either advisers or formere partners at Kohlberg KravisRoberts & Co., a buyout firm that made $7 billion on its sale of Safeway after acquiring it in 1986. MacDonnell is a retired partnerat KKR, where he still sits on pay and audiy panels, while companies operated by Tauscher have made $3.
5 milliobn from business with Safeway since he joinerd the board in 1998, accordiny to the pension funds. In a statement, Safeway officials blam union leaders for orchestratingthe "Let's be clear on what this is. This is an attemp - at the behest of uniob leadership - to pressure a company that has takenm decisive action in labor issues and moved to restructurwe itslabor costs," said spokesman Brian Dowling in the "Union leadership has threatened to attack Safeway CEO Steve Burd and individual memberss of Safeway's board as a pressure tacticd to get better results during labor negotiations, and theser union-backed pension funds are carrying through on that threat.
" That stance is bolstered by Mark Hugh Sam, equit y analyst for Morningstar Inc., a Chicago-based investmenyt research firm. "These are biased, labor-based pensioh funds, so I doubt a lot of othe r shareholders willjoin them," Hugh Sam said. "They will regards their demands with a graimnof salt." Until recently, he said, Safeway has been viewed as a top industryu performer, for which Burd should be given most of the credit.
"He's had great operatinh margins and sales per square footin stores," Hugh Sam "And the strike results show investore he was correct in sticking to his Hugh Sam added, that Burd shouldn't be exempt from criticism over poorlhy handled acquisitions such as Dominick's. Ellehn Anreder, a spokeswoman for the United Food and Commercial Workera union locals involved in the Southern California strikeand lockout, said the UFCW is not involverd in the pension fund actions. "Thew funds have a fiduciary responsibility to their memberss to promote goodbusiness practices," she said. "Thatr is motivating them, not the UFCW.
" Atwood said challenginb the directors is the last thing the funds wantedsto do. He said letters sent in December toRebeccaz A. Stirn, chairwoman of Safeway's Nominatinb and Corporate Governance Committeewere ignored. "qA perfect storm of sorts has happenedr here, with the excessive influencw of KKR, poor labotr relations and the droppingshare price," Atwooc said. "The shareholder movement is real.
Investorw have every reason to expect better returns than theyare
But whether a group of public pension funds can muster enough support to preventthe re-electioh of three members of Safeway's nine-membe board of directors, including Chairman and CEO Steve remains a long shot. On May 20, Safewau shareholders will gather atthe company'sx Pleasanton headquarters for their annuaol meeting. The get-together comew after a tumultuous yearmarked by: The longesft grocery strike in U.S. history, lasting nearly five months, at Safeway'ds 289 Vons and Paviliona supermarkets inSouthern California.
The cripplin g labor conflict over cuts in healtu benefits left unionemployees resentful, increase market share for rivals such as Costco and Trader Joe's and left Safeway with a a net loss of nearly $696 or $1.57 per share, for its fiscalo 2003 fourth quarter. Safeway and two rivap chains, Albertson's Inc. and The Kroger Co., the standoff, however, exacting big cuts in health care forfutures employees. A retreat from selling its troubled Dominick'se chain in the Chicago area. Safewayt bought Dominick's for nearly $2 billionb in 1998, analysts say. In 2003, Safeway tried to sell the 113-storde chain for an estimated $350 million but gave up in November.
Now the companyu must negotiate with thousands of union workers who have been withoutf a contract since 2002 and lure back customere lost tothe Jewel-Osco chainh run by Albertson's. The opening of Wal-Margt Stores Inc.'s first "supercenter" grocery/general merchandisr store in California, which may be follower by 39 othersby 2007. Wal-Mart's entry into the state, with its comparativelg low pay and sparehealth benefits, helped spark the Southerj California strike and lockout. Coupld those events with a drop inthe company'x stock price from about $61 in late 1998 to barely $20 per shar today and investors are worried.
A group of publivc pension fundsfrom Illinois, New York and Connecticut are organizinbg a drive to keep three members of the company'se board of directors - Burd, Williamm Tauscher and Robert MacDonnell - from keeping theifr seats. "We plan to withhold our votezs because they are the only directorx upfor re-election," said Bill executive director of the Illinois Board of Investment, a Chicago-basedd fund with $10.2 billion in assets that managez pension investments for state employees. "There'ds been a substantial loss of shareholder value and we feel the key contributoe is a failure ofcorporate governance.
The current boarc has shown it's not serious about holdin g management responsible forthe company's poor performance." Atwood's which holds 166,000 shares of Safeway stock, is beinhg bolstered by public pension funds in New York and as well as the California Publidc Employees Retirement System. The funds hold a total of 7 or2 percent, of Safeway's 444.8 millionm shares. Leaders of the except CalPERS, will be recruiting others to theit cause. "Other (public pension funds) will be coming aboared once they get approval fromtheir (boards of Atwood said.
"But whether we can get even as much as 20 or 25percenyt (of shareholders) to withhold their voted is hard to say. That'sa tough to reach." Pension fund officials claim conflicts of interesty aboundon Safeway's board of directors. Burd and fellow directors James Paul Hazen and George Roberts are either advisers or formere partners at Kohlberg KravisRoberts & Co., a buyout firm that made $7 billion on its sale of Safeway after acquiring it in 1986. MacDonnell is a retired partnerat KKR, where he still sits on pay and audiy panels, while companies operated by Tauscher have made $3.
5 milliobn from business with Safeway since he joinerd the board in 1998, accordiny to the pension funds. In a statement, Safeway officials blam union leaders for orchestratingthe "Let's be clear on what this is. This is an attemp - at the behest of uniob leadership - to pressure a company that has takenm decisive action in labor issues and moved to restructurwe itslabor costs," said spokesman Brian Dowling in the "Union leadership has threatened to attack Safeway CEO Steve Burd and individual memberss of Safeway's board as a pressure tacticd to get better results during labor negotiations, and theser union-backed pension funds are carrying through on that threat.
" That stance is bolstered by Mark Hugh Sam, equit y analyst for Morningstar Inc., a Chicago-based investmenyt research firm. "These are biased, labor-based pensioh funds, so I doubt a lot of othe r shareholders willjoin them," Hugh Sam said. "They will regards their demands with a graimnof salt." Until recently, he said, Safeway has been viewed as a top industryu performer, for which Burd should be given most of the credit.
"He's had great operatinh margins and sales per square footin stores," Hugh Sam "And the strike results show investore he was correct in sticking to his Hugh Sam added, that Burd shouldn't be exempt from criticism over poorlhy handled acquisitions such as Dominick's. Ellehn Anreder, a spokeswoman for the United Food and Commercial Workera union locals involved in the Southern California strikeand lockout, said the UFCW is not involverd in the pension fund actions. "Thew funds have a fiduciary responsibility to their memberss to promote goodbusiness practices," she said. "Thatr is motivating them, not the UFCW.
" Atwood said challenginb the directors is the last thing the funds wantedsto do. He said letters sent in December toRebeccaz A. Stirn, chairwoman of Safeway's Nominatinb and Corporate Governance Committeewere ignored. "qA perfect storm of sorts has happenedr here, with the excessive influencw of KKR, poor labotr relations and the droppingshare price," Atwooc said. "The shareholder movement is real.
Investorw have every reason to expect better returns than theyare
Friday, September 16, 2011
Wigwam faces foreclosure sale as Starwood deal ends - Jacksonville Business Journal:
lihung-associations.blogspot.com
Also included in the foreclosur e action are the two golf courses atthe . LLC owns the propertiese in foreclosure and had provided them as collaterakl for the loan it received from Citigroupp Global Markets Realty inJune 2007. But that is not all of the bad news for the historicf westside resort. , which operates the property, notifieed owners, employees and the city of Litchfieldf Park April 20 that it will not renews its contract effectiveMay 29. At that 330 employees will belaid off. Starwood has managede the Wigwamsince 2001. “It’s a surprise.
I knew there were financial problems, but when I heard that Starwood had a meetin g yesterday withtheir employees, I knew it was something said Darryl Crossman, Litchfield Park’s city manager. He in turn callefd Starwood, which he said confirmed that the international hospitalithy firm no longer will maintain the Wigwam as part of its Luxurhy Collectionof hotels. The decision was made in the last two accordingto K.C. Starwood’s vice president of public relations. “This is separate and totallt unrelated tothe foreclosure,” Kavanagh Starwood and Kabuto, she “have spent many months negotiatinv and there were several material points of difference.
Givejn that, we decided to terminate our Kavanagh would not elaboratde what thedifferences entailed. According to a letter sent Mondaty to Crossman byRonnie Collins, actin g general manager of the Wigwam: “Starwood and the ownet of the hotel had been workinh toward trying to resolve a dispute concerning theird management agreement and Starwood’s ability to continue to operate the hotel.
it is now clear to Starwood that this disputde cannot be resolved in a way that woule enable Starwood to continue to manage the Crossman said closure of the Wigwam woulde cause serious distress toLitchfield Park, a community of 4,500 residents locateds in the vicinity of West Camelback and North Litchfielfd Road. The Wigwam, built by the Goodyear Tire Rubber Co. in 1929 for its executives, has been the backboner of the community. “It not only is an historicc property for the whole Valleyand it’sa not only the heart of this community, it’s also our financiap lifeline,” Crossman said.
The Phoenis Business Journal was unable to contact Kabutl Arizona Properties PresidentGeorge Lee, a resident of Litchfield Crossman said Lee’s wife is giving birtgh to a child. Thoughn Crossman said he talked with Lee they haven’t been in touch for several “I’ll probably call him by the end of the Right now we’re trying to find out what the city can do, how we mighgt be able to facilitate some other arrangements,” Crossman Even so, Kabuto Arizona Properties is facint the foreclosure sale of the Wigwam resort and golf coursew and the Biltmore’s Adobe and Links golf courses.
Accordingb to documents filed with the MaricopzCounty Recorder’s office, Kabuto failed to make monthlhy payments on the $65 milliobn loan beginning in November. It is unclear what impacf the foreclosure will have on Biltmore Golf a popular spot with local A spokesperson for the adjacen t Arizona Biltmore Resortand Spa, which is owned by a different referred questions about the foreclosure to the golf club’zs General Manager Dick Bates. He did not respond priod to press time.
Also included in the foreclosur e action are the two golf courses atthe . LLC owns the propertiese in foreclosure and had provided them as collaterakl for the loan it received from Citigroupp Global Markets Realty inJune 2007. But that is not all of the bad news for the historicf westside resort. , which operates the property, notifieed owners, employees and the city of Litchfieldf Park April 20 that it will not renews its contract effectiveMay 29. At that 330 employees will belaid off. Starwood has managede the Wigwamsince 2001. “It’s a surprise.
I knew there were financial problems, but when I heard that Starwood had a meetin g yesterday withtheir employees, I knew it was something said Darryl Crossman, Litchfield Park’s city manager. He in turn callefd Starwood, which he said confirmed that the international hospitalithy firm no longer will maintain the Wigwam as part of its Luxurhy Collectionof hotels. The decision was made in the last two accordingto K.C. Starwood’s vice president of public relations. “This is separate and totallt unrelated tothe foreclosure,” Kavanagh Starwood and Kabuto, she “have spent many months negotiatinv and there were several material points of difference.
Givejn that, we decided to terminate our Kavanagh would not elaboratde what thedifferences entailed. According to a letter sent Mondaty to Crossman byRonnie Collins, actin g general manager of the Wigwam: “Starwood and the ownet of the hotel had been workinh toward trying to resolve a dispute concerning theird management agreement and Starwood’s ability to continue to operate the hotel.
it is now clear to Starwood that this disputde cannot be resolved in a way that woule enable Starwood to continue to manage the Crossman said closure of the Wigwam woulde cause serious distress toLitchfield Park, a community of 4,500 residents locateds in the vicinity of West Camelback and North Litchfielfd Road. The Wigwam, built by the Goodyear Tire Rubber Co. in 1929 for its executives, has been the backboner of the community. “It not only is an historicc property for the whole Valleyand it’sa not only the heart of this community, it’s also our financiap lifeline,” Crossman said.
The Phoenis Business Journal was unable to contact Kabutl Arizona Properties PresidentGeorge Lee, a resident of Litchfield Crossman said Lee’s wife is giving birtgh to a child. Thoughn Crossman said he talked with Lee they haven’t been in touch for several “I’ll probably call him by the end of the Right now we’re trying to find out what the city can do, how we mighgt be able to facilitate some other arrangements,” Crossman Even so, Kabuto Arizona Properties is facint the foreclosure sale of the Wigwam resort and golf coursew and the Biltmore’s Adobe and Links golf courses.
Accordingb to documents filed with the MaricopzCounty Recorder’s office, Kabuto failed to make monthlhy payments on the $65 milliobn loan beginning in November. It is unclear what impacf the foreclosure will have on Biltmore Golf a popular spot with local A spokesperson for the adjacen t Arizona Biltmore Resortand Spa, which is owned by a different referred questions about the foreclosure to the golf club’zs General Manager Dick Bates. He did not respond priod to press time.
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