Darrington lumber mill faces cuts
Published 9:29 pm Monday, April 6, 2009
Hampton Affiliates will cut back operations at its Darrington sawmill by 40 percent, it announced Monday night. The Oregon-based company said it will cut the equivalent of 275 employees at its operations in Oregon and Washington without providing specific numbers for the Darrington mill, the community’s largest private employer. That mill employs about 150 people. It wasn’t clear whether workers would be laid off or would work reduced hours. “Continuation of the global financial recession, the severe housing market decline and the resulting impact on Hampton’s businesses make it prudent for us to make these adjustments in our operating plans,” CEO Steve Zika said in a news release. “But we regret the stress this puts on our employees and the communities where we have our plants.” He said business is at historically low levels and it could be “several years” before markets return.
Ford cuts debt with cash, stock
Shares of Ford Motor Co. soared 16 percent Monday after the company said it completed tender offers that will reduce its debt by 38 percent and shave millions of dollars off its interest costs. The automaker retired about $9.9 billion in securities issued by either the parent company or its finance arm in exchange for cash and shares under terms of the debt buybacks. Combined, the moves are expected to reduce Ford’s interest expenses by more than $500 million this year as it tries to weather the worst auto sales downturn in 27 years. The Dearborn, Mich.-based company said it will pay a total of $2.4 billion and issue 468 million shares as a result of the offers. Shares of Ford rose 52 cents to close at $3.77 Monday.
Officials warn of mortgage scams
Federal and state officials are cracking down on mortgage modification scams, accusing “criminal actors” of preying on desperate borrowers caught up in the nation’s housing crisis. Government officials said Monday that scammers are seeking to take advantage of borrowers in danger of default by charging them up-front fees of $1,000 to $3,000 for help with loan modifications that rarely, if ever, pay off. The frauds often involve companies with official-sounding names designed to make borrowers think they are working in concert with the Obama administration’s efforts to modify or refinance 7 million to 9 million mortgages.
Sun takeover by IBM appears over for now
A $7 billion offer from IBM to take over Sun Microsystems Inc. apparently fell apart over the weekend. Sun’s shares tumbled 23 percent Monday to close at $6.56. The two sides had been nearing an agreement. But Sun balked at IBM’s last price of $9.40 per share, which had come down from earlier offers but still was about double Sun’s stock price before word of the negotiations leaked to investors last month.
From Herald news services
