Chillin' out till it needs to be funded
American Airlines, struggling with slumping demand in the recession, asked lenders to ease the terms of its $435 million loan, people familiar with the request told Bloomberg News.
American sought the waiver of its fixed-charge covenant during a June 22 conference call overseen by Citigroup, the lender managing the amendment process, these people said. AMR, the carrier’s parent, asked creditors to commit to the change by June 25, the news service reported.
The move reflects the strain on U.S. airlines from a collapse in business travel and a 40 percent surge in jet-fuel prices since March 1.
Office Depot said Tuesday that the private equity firm BC Partners has made a $350 million investment through a preferred stock purchase, giving it a stake in the office supplies chain of approximately 20 percent.
BC bought about $275 million of the company’s Series A convertible perpetual preferred stock and approximately $75 million of its Series B conditional convertible perpetual preferred shares. Office Depot, previously announced that it would close approximately 9 percent of its North American stores
JPMorgan Chase leads a list of the world’s strongest banks, while the Royal Bank of Scotland reported the biggest loss of any lender last year, according to new industry rankings by the British magazine The Banker.
The Royal Bank of Scotland’s $59.3 billion loss last year eclipsed all rivals, includingCitigroup’s $53 billion loss and Wells Fargo’s $47.8 billion loss, The Banker reported.
Global bank profits slumped 85 percent last year to $115 billion, down from $781 billion, and return on equity plunged to 2.69 percent, from 20 percent, the magazine estimated, according to Reuters.