NAB challenges $479m tax bill Nov 17, 2009
St George lost a similar case over the deductibility of $253 million in interest payments in the full Federal Court in May. The court found that the interest payments made on securities bought from a St George-owned ''special purpose vehicle'' based in the US corporate-governance haven of Delaware in June 1997 were not deductible because they were ''outgoings of a capital nature. (Sydney Morning Herald -- Business)
Wonk Watch 11.16.09 Nov 17, 2009
In todays two-part discussion, Felix Salmon weighs the pros and cons of privileging corporate debt by taxing interest payments ... First, the corporate income tax is a tax on income, and a tax on interest payments isnt a tax on income, so you cant expand corporate income taxes to include a tax on interest payments. (Slate)
Mortgage Refinancings: Tax Rules Are Tricky Nov 17, 2009
Borrowers who refinance need to familiarize themselves with tricky tax rules on what is or is not deductible for interest payments ... I know that the tax rules allow me to deduct interest payments on a refinancing loan as long as it is for the same amount as the existing balance ... But am I also entitled to deduct interest payments for the part of the refinancing that exceeds the existing balance. (RealtyTimes)
GM Gains, But Weaknesses Remain Nov 17, 2009
Carve out restructuring costs of $505 million, interest payments of $250 million, and taxes of $135 million, and GM lost only $261 million, showing that the company's operations have improved. With its big debt load, though, GM will be shouldering interest payments for years. (BusinessWeek)
UK inflation rate rises to 1.5 pct in Oct Nov 17, 2009
Retail prices excluding mortgage interest payments rose by 1. 9 percent after rising 1. (OregonLive, OR -- Business)
Whats up with LCL Corp? Nov 17, 2009
The company faced low billings because of the doldrum in the Dubai property market, which weakened cash flow to cover interest payments, he said, adding that LCLs gross debt was about RM400mil. LCL has to focus on reducing its debt level by trying to increase collection from its clients. (The Star Online, Malaysia -- Business)
Swaps Signal Worst Yen Since '05 as Mounting Debt Overwhelms Market Demand Nov 16, 2009
2 trillion yen on interest payments this year, or 26. 2 percent of tax revenue, up from 18 percent in 1990 and 18. (Bloomberg -- Japan)
* Struggling MGM says it might try to find a buyer Nov 15, 2009
In a statement, MGM also said its lenders have agreed to grant the company another respite until Jan. 31 from interest payments on nearly US$4 billion in debt ... Although MGM had the cash on hand to make the interest payments, pushing back the interest payments allows it to complete three movies it has in the pipeline for next year: Hot Tub Time Machine, Red Dawn and The Zookeeper, the person said. (Taipei Times, Taiwan -- World)
Getting it together at last Nov 15, 2009
A requirement to run a primary surplus (before interest payments on the public debt) was introduced in 1999, and the federal government has hit the target for it every year since, though there is a good chance that it will miss it this year. This has allowed Brazil to get rid of most of the dollar-denominated foreign debt that caused such instability every time the economy wobbled. (The Economist)
Leaky water system poses big challenge Nov 15, 2009
So far the cost of replacing the guarantees, including the higher-than-expected interest payments and fees for professional services, is around $2. 8 million, Mr. Kenney said. (Pittsburgh Post-Gazette, PA)
Is a vacant house taxable? Nov 15, 2009
This means that if you have already availed of one loan to refinance the original loan and now want to avail a third loan to refinance the second loan, tax rebate on interest payments will not be permissible. Tax laws provides only for deduction of interest with respect of second loan and not of subsequent loans. (India Times)
Speaker defends expenses reforms Nov 15, 2009
They are angry over losing mortgage interest payments on second homes and the ban on employing family members. Mr Bercow said: "The public perception of the way in which we operate is so negative that it is necessary to accept a wholesale, fundamental and I think irrevocable change... there's an element of rough justice, but it is necessary.". (BBC News -- UK)
Ask AP: Soldier in Uzbekistan, solar panel safety Nov 14, 2009
Twice a year, the Treasury Department makes interest payments to the trust funds, though it is little more than an accounting exercise. No money changes hands, but the interest payments are added to the balance of the trust funds. (Atlanta Journal-Constitution -- World)
JeffCo sues Langford, JP Morgan Nov 14, 2009
Jefferson County alleges the bond swaps were used to generate hundreds of millions of dollars in fees and interest payments for JP Morgan, court filings show. They provided no value to the county s then-existing sewer debt, the documents say. (Birmingham Business Journal, AL)
Metro-Goldwyn-Mayer confirms 'potential sale' of company as lenders extend deadline Nov 14, 2009
In a statement, MGM also said its lenders have agreed to grant the company another respite until Jan. 31 from interest payments on nearly $4 billion in debt. The decision, reversing its refusal to sell a year ago, came during a conference call Friday between restructuring expert Stephen Cooper, now MGM's vice chairman, and the 140 lenders owed some $3. (FOX61, CT)
Ala. County Sues JP Morgan Over Debt Deals Nov 14, 2009
The county's interest payments skyrocketed during the global financial crisis, and it can no longer afford them. 1. (ABC News -- Wire)
Struggling studio MGM says looking for buyer Nov 14, 2009
In a statement, MGM also said its lenders have agreed to grant the company another brief respite until the end of January from interest payments on nearly $4 billion in debt. The studio owes $3. (KGW Northwest NewsChannel 8, OR -- Business)
Aid freeze in post-coup Honduras hurting poor Nov 13, 2009
Small businesses that rely on small loans cannot make their interest payments, which typically help fund new loans to other businesses. "There's so much fear in the country right now and people aren't out spending so I can't pay back my loan and that's going to affect others," said hairdresser Orfa Ortiz in her one room salon, a business that relies on microcredit from Spain and Norway. (AlertNet)
Turbo Power Systems Inc. (TPS) Announces Results for the Third Quarter and Nine Months Ended 30 September 2009 Nov 13, 2009
The following tables details the Company's contractual maturities for its financial liabilities, including interest payments and operating lease commitments, as at 30 September 2009. Payments due by period Total 2009 2010 2011 2012 2013 2014 and thereafter Trade and other payables 2,516 2,516 - - - - - Convertible notes 6,226 58 1,818 4,350 - - - Operating leases 3,173 - 478 481 478 244 1,492 ----------------------------------------------------- 11,915 2,574 2,296 4,831 478 244 1,492. (CCNMatthews Press Releases)
U.S. Treasury Confident Congress Will Increase $12.1 Trillion Debt Ceiling Nov 13, 2009
Tactics such as tapping federal retirement funds would free up roughly $150 billion - about the same amount as the interest payments that come due on Dec. 31. Temporary Measures. (Bloomberg -- US)
Briefing: Derivatives Nov 13, 2009
Besides futures, there are options (the right, but not the obligation, to buy or sell at a given price), forwards (cousins of futures, not traded on exchanges) and swaps (exchanging one lot of obligations for another, such as variable for fixed interest payments) ... For interest-rate contracts, notional values are even more misleading because they are based on principal amounts; actual obligations depend on interest payments. (The Economist)
Xtreme Coil Achieves Record Third Quarter EBITDA and Operating Days and Provides Update Nov 13, 2009
Interest payments are not included in the table. Management believes cash on hand, cash flow from operating activities and amounts available under Xtreme Coil's credit facilities will be sufficient to fund payments due in less than one year. (CCNMatthews Press Releases)
KKR Puts Higher Valuation on Dollar General Than Walmart in IPO Offering Nov 12, 2009
1 billion in long-term borrowings at the end of July, used about of its operating income for interest payments, data compiled by Bloomberg show. Thats more than 10 times the median amount that interest expenses trimmed from operating income at 10 competing retailers. (Bloomberg)
State finds there is a cost to being broke Nov 12, 2009
SPRINGFIELD -- Illinois is poised to fork over a record amount of late penalties and interest payments this year to pay off vendors who are waiting months to be paid what they are owed from the state. The increase is bad news for taxpayers who could be on the hook for an estimated $60 million because of the budget mess that has gone largely unresolved by state leaders. (The Pantagraph newspaper)
Crisis fading, not debt Nov 12, 2009
To get that figure down to 60 per cent of GDP - a level the IMF regards as sustainable - by 2030 will require a turnaround in the ''structural primary'' fiscal balance (that is, abstracting from the improvement that will occur automatically as economic growth eventually returns to trend rates and also excluding interest payments) from deficits averaging 3. 5 per cent of GDP in 2010 to surpluses averaging 4. (Sydney Morning Herald -- Business)
FCC seeks more data on TV merger Nov 12, 2009
Copies of the term loan agreement were submitted to the FCC but redacted information about the $22 million payment as well as information about quarterly interest payments and annual principal payments due under the loan. Reach Rick Daysog at. (Honolulu Advertiser)
E.ON Raises Full-Year Profit Outlook a Second Time on Lower Interest Rates Nov 11, 2009
Nov. 11 (Bloomberg) -- , Germanys largest utility, raised its full-year profit forecast a second time because of lower interest payments for debt it took on to buy power plants and add clients from Spain to Siberia. Adjusted , which doesnt reflect writedowns or swings in fuel costs, will fall by 3 to 5 percent this year, the Dusseldorf-based company said today in a statement. (Bloomberg -- Germany)
Bob Evans 2Q Profit Rises 37 Percent Nov 11, 2009
Bob Evans 2nd-qtr profit rises as lower interest payments and taxes offset lower sales ... Bob Evans Farms Inc. said Tuesday its profit rose 37 percent in the second quarter as lower interest payments and a better tax rate offset weaker than expected sales. (ABC News -- Wire)
Simmons Bondholders May Get 5% After Thomas Lee Dividends, Moody's Says Nov 11, 2009
As a result, Atlanta-based Simmons missed interest payments, had its credit rating cut four steps and said it would file for bankruptcy and be sold to another private equity firm, the analysts wrote. Boston-based THL Partners bought Simmons in November 2003 for $1. (Bloomberg -- US)
FCC requests more information about KGMB-KHNL merger Nov 11, 2009
Copies of the term loan agreement were submitted to the FCC but redacted information about the $22 million payment as well as information about quarterly interest payments and annual principal payments due under the loan. Reach Rick Daysog at 525-8064 or. (Honolulu Advertiser)
* Singapore mulls more anti-speculation property rules Nov 10, 2009
Singapore has barred -interest-only loans for some housing projects and stopped allowing developers to absorb interest payments for apartments that are still being built. Despite the lingering uncertainties in the domestic and global economy, domestic -property -market activity has taken on its own dynamic, the central bank said. (Taipei Times, Taiwan -- World)
Current-Account Surplus Widens as Global Stimulus Helps Japanese Exports Nov 10, 2009
2 percent from a year earlier as lower bond yields globally eroded interest payments and a stronger yen reduced investors profits. On a , the current-account surplus widened to 1. (Bloomberg -- Japan)
Corporate bond market likely to expand Nov 10, 2009
Covered bonds are corporate bonds that are secured to specific assets such as mortgages, and which provide a cashflow to cover interest payments. This makes them safer than plain corporate bonds. (Sydney Morning Herald -- Business)
Obama's plan to help homeowners is struggling Nov 10, 2009
When borrowers stop making payments, the servicer is required to advance the interest payments to investors out of its own pocket. Once the servicer forecloses, it gets to recoup those payments from the sale of the home. (Salon)
Bad credit card debts 'will soar' Nov 9, 2009
The firm calculates the average household will need to spend approximately 15% of its income after costs and taxes "purely to service the interest payments" arising from these levels of debt. Bookmark with. (BBC News -- Business)
Valuing bonds and dollar not easy anymore Nov 9, 2009
It can mean only one thing: Investors should brace themselves for the equity-style risk of losing all of their money, not the security of regular interest payments. Currency Carnage. (India Times)
What is a Line of Credit? Nov 8, 2009
Every bit of cash should be put into the line of credit account to reduce the interest payments. When the line of credit is paid off, then it is time to move any excess cash into an interest earning account. (Suite101.com)
Ten retirement tips Nov 8, 2009
Over a period of 10 years, inflation can eat away at the purchasing power of bonds interest payments by more than a third. Some financial advisors recommend that even retirees in their 70s or 80s keep 20 percent or more of their holdings in equities. (iAfrica.com)
KGMB owner to get $22M from Raycom Nov 7, 2009
In a filing with the Securities and Exchange Commission Wednesday, Virginia-based MCG Capital Corp said Raycom, which owns K5 and KHNL, also must make quarterly interest payments and annual principal payments. Critics said the arrangement shows that the merger is in fact a sale and should be overturned under federal laws barring multiple ownership of television stations in a single market. (Honolulu Advertiser)
Knology Reports Results for the Third Quarter and Announces Definitive Agreement to Acquire the Assets of Private Cable Co., LLC for $7.5 Million Cash Nov 7, 2009
Note: The nine months ended September 30, 2009 amounts include eleven months of interest payments on the $555 million term loan due to modification of the related interest contracts that occurred during the first quarter 2009. Pro forma net cash interest paid and free cash flow using nine months of interest payments on the $555 million term loan are approximately $28,313 and $38,571, respectively, for the six months ended September 30, 2009. (Yahoo! Wire -- Entertainment News)
Lazy Days files for bankruptcy Nov 7, 2009
2 million through the elimination of bond interest payments, the company said in a release. Lazy Days filed a pre-packaged restructuring plan on Nov. 5 after receiving approvals from its lenders and bondholders. (Tampa Bay Business Journal, FL)
Doubts cast over expenses reforms Nov 7, 2009
Ending claims for mortgage interest payments on second homes - instead MPs will only be able to claim for rent or hotel stays. Banning the "flipping" of residences, with the designation of main and second homes to be governed by an objective test and "robustly" enforced by a new independent regulator. (BBC News -- UK)
At-a-glance: Expenses proposals Nov 7, 2009
MPs will not be able to claim for mortgage interest payments on second homes. They will only be able to claim for rent or hotel stays. (BBC News -- UK)
Main Street Capital Announces Third Quarter 2009 Financial Results Nov 6, 2009
Approximately 87% of Main Street's debt investments at cost were structured at fixed interest rates with cash interest payments generally due monthly. Based on information provided by our portfolio companies, which we have not independently verified, our portfolio companies had a weighted average net senior debt (senior interest-bearing debt through Main Street's debt position less cash and cash equivalents) to EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) ratio of... (Primezone Releases)
Brampton Brick Reports Results for the Third Quarter Ended September 30, 2009 Nov 6, 2009
9%, in the promissory note receivable, including future interest payments, for cash proceeds of $3,793 resulting in a loss of $269 ... 9%, in the proceeds of the promissory note receivable, including future interest payments, generated cash proceeds of $3,793. (CCNMatthews Press Releases)
State using NYers as ATMs, DiNapoli says Nov 6, 2009
The delays, though, will cost the state at least $30 million in additional interest payments. At least $6 billion of payments are due in mid-December, and Paterson has said the state lacks the funds to pay up. (Albany Business Review, NY)
Foreign investors flock to Australian property Nov 6, 2009
Drastic maybe - but so was splurging billions to minimise the GFC. And, lets get rid of negative gearing on any non commercial properties beyond say having 1 additional investment property (beyond the family home) - and let owner occupiers claim part of their home mortgage interest payments as a tax deductions instead. We've seen that governments are willing to take drastic, costly action when the situation warrants it - well I think the home ownership situation is very drastic. (Sydney Morning Herald -- Business)
Press Release: IMF Concludes Visit to The Gambia for the Sixth Review of the Three-Year Program Under the Poverty Reduction and Growth Facility Nov 6, 2009
The mission welcomes the Gambian authorities intention to take corrective actions for the missed end-September performance criterion, notably by preparing a budget for 2010 that will lower government s domestic debt slightly, ease pressure on treasury bill yields, and generate savings from lower interest payments. On this basis, the IMF s Executive Board could consider the sixth review of the PRGF in early 2010. (IMF News)
Valuing Bonds, Dollar Is Crazy in World Gone Mad Nov 5, 2009
It can mean only one thing: Investors should brace themselves for the equity-style risk of losing all of their money, not the security of regular interest payments. 3) Currency Carnage. (Bloomberg -- Columnists)
Chrysler goal: Pump life into car lineup; plans 4 new Dodges Nov 5, 2009
Chrysler also had an operating profit of $200 million in the third quarter, he said earnings before taxes, interest payments and depreciation. DRIVE ON: REPAIRS AHEAD. (USA Today -- Money)
Patrick waves off new trans. revenues, Baddour calls for Red Line probe Nov 5, 2009
Patrick waves off new trans. revenues, Baddour calls for Red Line probe - Dover, MA - Dover-Sherborn Press. (Dover Sherborn Tab, MA)
No more duck house: Britain cuts lawmaker expenses Nov 5, 2009
Kelly said expenses will no longer cover mortgage interest payments on second homes. Only claims for rent on modest apartments, or for occasional hotel rooms, will be allowed. (ABC 7 News, DC)
Toronto Star starts restructuring, offers buyouts Nov 4, 2009
The company that owns Indiana's Hoosier Park casino and horse track and a Colorado casino, said that it didn't make interest payments to senior lenders as scheduled this week. Centaur LLC said Thursday that it's working toward a companywide restructuring in an effort to reduce debt. (Fresno Bee -- Business)
Ask Mr. Dad: All of life's riches Nov 4, 2009
Get them involved in managing the money in their 529 college savings plans, have them sit with you while you pay household bills, and have them calculate the interest payments on hypothetical (or real) credit card balances. Again, valuable life lessons. (Fresno Bee -- Lifestyle)
Transcript of a Conference Call on the November 2009 Cross-Country Fiscal Monitor Nov 4, 2009
MR. COTTARELLI: We have the primary balance which is the balance minus interest payments. Then we have the primary balance adjusted, and that's what we call the headline balance. (IMF News)
New heights for Singapore property Nov 4, 2009
It also recently banned developers from absorbing interest payments for projects that were still under construction. But there are few indications yet that demand or prices are set to slow for HDB housing. (Asia Times Online)
Should muni bonds be in portfolio? Nov 4, 2009
First, you ll receive regular interest payments ... These liquidity issues may not matter to you, however, if you intend to hold your bond until maturity, collecting regular interest payments along the way and eventually receiving your principal back. (Rockport Pilot, TX)
Texas cities win $20M verdict in tax case Nov 3, 2009
Wolens said any appeals process could increase the amount owed if the verdict is upheld and his firm will file for increased damages and interest payments if that is the case. The verdict could impact the state coffers of Texas, which has its own administrative claim against the online booking companies, but has not yet filed suit, Wolens said. (Dallas Business Journal, TX)
Ford posts $1 billion profit Nov 3, 2009
While it made a profit in the second quarter, that was mainly due to debt reductions that cut its interest payments. Its North American car and truck divisiona key businessposted a pretax profit of $357 million, its first quarter in the black since early 2005. (The News-Press -- Business)
Transcript of a Conference Call on the Completion of the First Review of Iceland’s Stand-By Arrangement with Mark Flanagan, Mission Chief for Iceland, and Franek Rozwadowski, Resident Representative in Iceland Nov 3, 2009
How is Iceland going to pay back these high debts, because sustainability means that we can pay the interest payments. What about the capital itself. (IMF News)
Kingdom of the Netherlands—The Netherlands 2009 Article IV Consultation: Preliminary Conclusions Nov 3, 2009
In this context, the mission estimates that the structural fiscal position excluding interest payments and gas revenues (the robust balance) will decline by about 2 percent of GDP over 2009-10 to a deficit of 5 percent of GDP. Public debt has surged in 2008-09 and is to approach 65 percent of GDP by 2010, as a result of the ongoing budget relaxation, but equally due to the financial sector assistance, largely reported as financing transactions on the assumption that disbursements will be... (IMF News)
Texas cities win case over hotel Web sites Nov 3, 2009
Wolens said any appeals process could increase the amount owed if the verdict is upheld and his firm will file for increased damages and interest payments if that is the case. The verdict could impact Texas state coffers, which has its own administrative claim against the online booking companies, but has not yet filed suit, Wolens said. (Austin Business Journal, TX)
Ford posts surprising profit Nov 3, 2009
While it made a profit in the second quarter, that was mainly due to debt reductions that cut its interest payments ... While it made a profit in the second quarter, that was mainly due to debt reductions that cut its interest payments. (New York Post -- News)
Meltdown 101: Ford Has Suffered Less Than Rivals Nov 2, 2009
3 billion profit in the second quarter, mainly due to debt reductions that cut annual interest payments. Ford says it aims to return to a full-year profit in 2011. (ABC News -- Wire)
Inland Western defaults on loans, warns of more Nov 2, 2009
Though the company is struggling to pay off loans when they mature, it is still generating enough rental income to make regular interest payments, even on the defaulted loans. The REIT had $140. (Crain's Chicago Business)
