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Effective Jan. 1, state law will requirw companies renewing business licenses to obtain a certificat confirming that they have notaxes due. the Department of Revenue has hired three contractors since 2004 to identify and collect unpaid andunderreportedx taxes. The contractors have identifiedalmost $80 million the department otherwise might have missed, spokesma David Griffith said. The statde also has enlisted the public’s support. A “Who is not link on the department’s home page lista companies whose sales tax licenses have been revoked for failure toremit taxes. As of Dec. 21, the site listed 607 businessedin Jackson, Clay and Platte counties.
Even with outsides help, the state’s handle on tax delinquencies appears tenuous. Jim who left as administrator of the Departmentgof Revenue’s taxation bureau in estimated that as much as $1 billion in delinquent taxes are outstanding, though about half of that probably is too old or difficul t to realistically try to collect. “The figure is extremely hard to quantifuyand prove,” said now a consultant with , a Montreal-based technologyg consulting firm. “If someone wanted to pin me down for a Iprobably wouldn’t have one.” Omar Davis, the director of revenue since 2007, disputed Brentlinger’s $1 billiohn figure.
But the departmeng could not provide a specifi c figure or even an estimatw of unpaid orunderpaid taxes. Janette Lohman, a lawyer with who servec as director of revenue from 1993 to said she has no idea how the departmenf couldquantify delinquencies. Unless filers are auditef or filing discrepanciesare investigated, it is difficult to determine whether they owe more, she Another problem is that the departmenty has no authority to wipe unpaid taxe s off its books, even when the state has no chance of collecting A third issue is the department’s accounting systemw and software.
As recently as four years ago, the departmeng was unable to get its 118 different taxsystemsd — for personal income, sales, business, withholding, cigaretted and other taxes — to talk to one Manual paper reports made it difficult to update information throughout those systems and identifyy delinquencies. Overhauling the syste probably would take years and cost tens of millione of dollarsor more, Brentlingere said. That would require buy-in by the department, the statwe Office of Administration, the governor and legislators a tall orderin today’s economic In September 2004, the Department of Revenue hired of Ohio, to compare various tax recordd and information sources.
Through the June 30 expiratiojn ofits contract, the departmeny paid Teradata $12.5 million for its help in recovering $51 milliob in unpaid and underreported taxes. On July 1, the departmenrt signed a new contract with Teradatsa to expand and update Brentlinger said. In October 2007, the departmeng hired , a New York City-bases receivables management and third-party collections and Houston-based , which billws itself as North America’s largest private collectio agency. IQor contacts taxpayers to try to get them to make good on unpaid taxes or establish apayment plan.
IQor’s subsidiargy and GC Services pursue collectione more aggressively when phone callds andletters don’t do the trick. They can pay personalk visits, notify credit agencies and even work with Griffith said the department canattributde $24.8 million in collections of delinquenr taxes to iQor in fiscal 2008; iQor was paid nearlyu $1.26 million for its services. GC Servicesw collected $4 million and was paid $259,000 in fiscal 2008. He said both contractsz are set to expir ein June. “It’s not fair to taxpayers who pay everyt year for others to slide by and go undefrthe radar,” Griffith said.
viernes, 26 de octubre de 2012
jueves, 25 de octubre de 2012
Dan Snyder stays at Six Flags under reorganization - Houston Business Journal:
stockdaleiqemico1521.blogspot.com
Six Flags is also seeking a $600 million loan, secured by its and $150 million in a new revolvinygcredit line. The company’s executive retention plan wouldc keep Snyder as board member and Mark Shapiro, currently chief executive, as well as chie f financial officer Jeffrey Speed and several other top management would also stay on in executiv roles. Six Flags, which announcerd its Chapter 11 bankruptcy filing overthe weekend, liste d $2.4 billion in debt and $3 billion in It hopes to cut debt by $1.8 billion and wipe out more than $300 milliomn in preferred stock.
Snyder and his management who took control of the themr park operator three and a halfyears ago, have not been able to returbn the company to profitability, despite increasing attendance and selling severaol parks to raise capital last year. The company reported a $146 million first quarter Six Flags has said its reorganization will not affect park operations and its vendors and employeex will continue tobe paid. Six Flagzs 20 theme parks includein Largo.
Six Flags is also seeking a $600 million loan, secured by its and $150 million in a new revolvinygcredit line. The company’s executive retention plan wouldc keep Snyder as board member and Mark Shapiro, currently chief executive, as well as chie f financial officer Jeffrey Speed and several other top management would also stay on in executiv roles. Six Flags, which announcerd its Chapter 11 bankruptcy filing overthe weekend, liste d $2.4 billion in debt and $3 billion in It hopes to cut debt by $1.8 billion and wipe out more than $300 milliomn in preferred stock.
Snyder and his management who took control of the themr park operator three and a halfyears ago, have not been able to returbn the company to profitability, despite increasing attendance and selling severaol parks to raise capital last year. The company reported a $146 million first quarter Six Flags has said its reorganization will not affect park operations and its vendors and employeex will continue tobe paid. Six Flagzs 20 theme parks includein Largo.
martes, 23 de octubre de 2012
Canadians set up outposts in Northern Washington - Portland Business Journal:
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“We’ve had a number of inquiriee from manufacturers and industries out of Canada about lookinyg at land in the United saidRon Freeman, owner of Doug Freeman Real Estate in Blaine, Wash., which is located alony Interstate 5 right at the Canadian “The overwhelming cause is that the land costs in Canada have become so Eugen Klein, a broker in Vancouver, British said industrial property prices in the provincee have quadrupled in some areas over the past four He cited several other reasons why Canadian companiexs are looking south. “Down he said, “there are also better tax advantages, capital gains rollovers, and bettefr employment laws.
” A stronb Canadian dollar also has providedsome muscle. Inquirie s really began to pick up when it drew even withthe U.S. dollare in the fall of 2007, Freemajn said. For manufacturers with lots of U.S. a factory in Washington means eliminating the red tape of sendinh products across aninternational border, and lowet transportation costs. Even a warehouse helps. “In a smal l way a lot of Canadian companiezs are doing something we calla ‘picj and pack.
’ They may still be manufacturing productds in Canada, but they are buying warehouses in the Unite d States and inventorying their products here,” Freeman The Washington outposts often have a degree of separation from the Canadian headquarters. Back in 2003, Golden Boy Foods, of Burnaby, B.C., opened a subsidiary called in That same yearin Ferndale, Wash., eight miles southeast of LLC set up It calls itself a sistet company to Intercontinental Truck Body of Surrey, B.C. This opened in Blaine, noting that abourt 40 percent of theparenft company’s ceramic tile business has been in the United The level of interest in U.S.
propertg is tied closely to the distancw from theCanadian border. The Seattle officesz of CB Richard Ellis and saythey aren’tg seeing any increase in interest in the Seattle-Tacoma “There hasn’t been much buying in Seattl because our cap (capitalization) rates are so said Greg Laycock, senior vice president of investment sales for Grubbg & Ellis in Seattle. The Canadians want commercial propertiess that can perform on their own withoutr the extra boost of theexchangre rate, he said. Farthedr north, the change is more “We’re seeing a little more interest,” said Don executive director of the ofSkagit County, locatede in Northwest Washington.
“Certainly if the dollarr continues tobe weak, I assumw we are going to see more activitt from Canada. That’s just logic playing out.” Canadianh interest had already been noticeabls forseveral decades, said Ron Bennetg of Ron Bennett Commercial Real Estate in Wash. “In commercial, they have been very activr down here because a lot of the Canadiansw over the years have put funds in U.S. banks down here,” he said. “Abouf 30 percent of the people who come in here are Of that30 percent, about 50 percent are vacangt land speculators. I wouldd say another 10 percent arebottom feeders.
” The strong Canadiam dollar allows them to come in with strong but they aren’t walking in the door readyt to pay full price, he said. Some buy large projectss such as apartment complexes andretaill centers, but the primary focus is on distributiomn centers and lumber. “In Bellinghajm we don’t have a lot of retail land or light industrialo inour inventory,” Bennett said. “When you don’tr have a lot of land in of course the price goes up Right next to the Canadian the surge in inquiries ismost “It’s not an anomaly. It’ss a definite trend, probably in the last year or saidNancy Jordan, executive director of the .
One of the firsyt things her office does is make sure the companie are in contact with immigration attorneys and accountant who understand the complexitiesof cross-borderr taxation. The economic impact goes beyond commercialreal estate.
“We’ve had a number of inquiriee from manufacturers and industries out of Canada about lookinyg at land in the United saidRon Freeman, owner of Doug Freeman Real Estate in Blaine, Wash., which is located alony Interstate 5 right at the Canadian “The overwhelming cause is that the land costs in Canada have become so Eugen Klein, a broker in Vancouver, British said industrial property prices in the provincee have quadrupled in some areas over the past four He cited several other reasons why Canadian companiexs are looking south. “Down he said, “there are also better tax advantages, capital gains rollovers, and bettefr employment laws.
” A stronb Canadian dollar also has providedsome muscle. Inquirie s really began to pick up when it drew even withthe U.S. dollare in the fall of 2007, Freemajn said. For manufacturers with lots of U.S. a factory in Washington means eliminating the red tape of sendinh products across aninternational border, and lowet transportation costs. Even a warehouse helps. “In a smal l way a lot of Canadian companiezs are doing something we calla ‘picj and pack.
’ They may still be manufacturing productds in Canada, but they are buying warehouses in the Unite d States and inventorying their products here,” Freeman The Washington outposts often have a degree of separation from the Canadian headquarters. Back in 2003, Golden Boy Foods, of Burnaby, B.C., opened a subsidiary called in That same yearin Ferndale, Wash., eight miles southeast of LLC set up It calls itself a sistet company to Intercontinental Truck Body of Surrey, B.C. This opened in Blaine, noting that abourt 40 percent of theparenft company’s ceramic tile business has been in the United The level of interest in U.S.
propertg is tied closely to the distancw from theCanadian border. The Seattle officesz of CB Richard Ellis and saythey aren’tg seeing any increase in interest in the Seattle-Tacoma “There hasn’t been much buying in Seattl because our cap (capitalization) rates are so said Greg Laycock, senior vice president of investment sales for Grubbg & Ellis in Seattle. The Canadians want commercial propertiess that can perform on their own withoutr the extra boost of theexchangre rate, he said. Farthedr north, the change is more “We’re seeing a little more interest,” said Don executive director of the ofSkagit County, locatede in Northwest Washington.
“Certainly if the dollarr continues tobe weak, I assumw we are going to see more activitt from Canada. That’s just logic playing out.” Canadianh interest had already been noticeabls forseveral decades, said Ron Bennetg of Ron Bennett Commercial Real Estate in Wash. “In commercial, they have been very activr down here because a lot of the Canadiansw over the years have put funds in U.S. banks down here,” he said. “Abouf 30 percent of the people who come in here are Of that30 percent, about 50 percent are vacangt land speculators. I wouldd say another 10 percent arebottom feeders.
” The strong Canadiam dollar allows them to come in with strong but they aren’t walking in the door readyt to pay full price, he said. Some buy large projectss such as apartment complexes andretaill centers, but the primary focus is on distributiomn centers and lumber. “In Bellinghajm we don’t have a lot of retail land or light industrialo inour inventory,” Bennett said. “When you don’tr have a lot of land in of course the price goes up Right next to the Canadian the surge in inquiries ismost “It’s not an anomaly. It’ss a definite trend, probably in the last year or saidNancy Jordan, executive director of the .
One of the firsyt things her office does is make sure the companie are in contact with immigration attorneys and accountant who understand the complexitiesof cross-borderr taxation. The economic impact goes beyond commercialreal estate.
lunes, 22 de octubre de 2012
GSA, lien suits put Opus East on verge of bankruptcy - Pacific Business News (Honolulu):
meaning-sarajevo.blogspot.com
But now, because the U.S. General Services Administration has refusexd to pay the developerfor “eveh one penny” of the more than $35 milliom the company has invested in erectintg a new federal building in College Park, Opus East is teetering on the verge of the company says. And the problemxs aren’t limited to College Opus’ liquidity problems have had an unexpected impactt on projects at Catholic Universit in the District and as far away as How serious arethe long-term ramificationx for Opus East? “It’s not something we’re happuy about — we’ll put it that way,” said a corporates spokeswoman.
Opus East’s parent company, Minn.-based Opus Corp., has retainesd legal counsel “to explore bankruptch or restructuring” for Opus East and Opus a Phoenix-based operating company, said the spokeswoman, Winstohn Hewett. Two other Opus operatinbg companies, Opus South and Hill Countrty Galleria, were put into Chapter 11 bankruptcy proceedingsthis spring. For Opus Corp, “this is all reallh new territory,” Hewett said. “In our 56 years in the industry, this is the firsrt time we’ve ever run into a completre meltdown ofthe industry. We’ve never experience anything like this.
” From the company’s perspective, the problems in its East Coast division are attributable in larg part toOpus East’s 2005 GSA contract to design, financ e and build a 269,000-square-foot home for the Nationa Oceanic and Atmospheric Administration’s Center for Weather and Climatw Prediction in College Park. The project broke grounds in 2007 but, despite tacking on additional the GSA has made no payments for any Opus East workso far. The Department of Justice is defending the GSA inOpus East’s As a matter of policy, the department does not commentt when litigation is pending.
In correspondence betwee n thetwo parties, filed in court, the GSA said it has no obligatioh to provide progress payments or to modifyy the lease agreement. Still, the GSA said in the letterss that it had proposed three differentylease modifications, and all three were rejected by Opus By the third quarter of 2007, the projecft was hurting Opus East’s overalpl operations, the company said. Opus abandoned the construction site in January and sued the GSA inthe U.S. Courtg of Federal Claims in May. In the meantimee — with virtually no money available in the capitalmarketds — the company is stretched thin at severap other projects in the area.
As Opus East put the finishingy touches on 100M St. SE, its contracteds buyer, Detroit-based MayfieldGentry Realty Advisors LLC, walked away from the deal in May. Just four blockds away, its 442,000-square-foot speculative office project at 1015Half St. SE is continuingg in full swing. Even so, it’s no cake “In light of the current market until a project is leased and every spec project has the capacit y to financially impactan organization,” Hewetty said.
The company delivered Opus Hall, a 402-bedr dormitory at The Catholic Universithyof America, in January but, by unpaid contractors were filing liens against both Opus East and the At the end of May, at leasr one contractor, Joseph J. Magnolia Inc., had filedr suit for nonpayment agains t Opus East and ContinentalCasualty Co., which had issued a $30 million payment bond on the Catholic project. Although Opus Hall is ownede entirelyby Catholic, the Opus spokeswoman said the contractores should not have filed lienes against the university, only against Opus East and the In Manassas, Opus has spent the past four years planning and building Hastings Marketplace, a 13.
2-acres residential and retail project that woulcd bring the city’s first Harris Teeter grocerh store to the juncture of Prince William Parkwag and Lake Jackson Drive. But both the residentiapl and retail markets had slowed byearlh 2008, and as the economic crisis hit its full stride in the thircd quarter, the company cut the scopde of the project in half. On the things look good at Hastings: One of the two planned buildinges hasbeen delivered, and Harris Teeter is schedulefd to open any day now. But the construction lenderr cut off funding earliee this year after it determineethe property’s value had dropped far below its acceptablde loan-to-value ratio.
Unpaid contractors have filec at least four liens against theManassas property. As a Opus is particularly vulnerable to the seismic shifgt in the commercial realestat market.
But now, because the U.S. General Services Administration has refusexd to pay the developerfor “eveh one penny” of the more than $35 milliom the company has invested in erectintg a new federal building in College Park, Opus East is teetering on the verge of the company says. And the problemxs aren’t limited to College Opus’ liquidity problems have had an unexpected impactt on projects at Catholic Universit in the District and as far away as How serious arethe long-term ramificationx for Opus East? “It’s not something we’re happuy about — we’ll put it that way,” said a corporates spokeswoman.
Opus East’s parent company, Minn.-based Opus Corp., has retainesd legal counsel “to explore bankruptch or restructuring” for Opus East and Opus a Phoenix-based operating company, said the spokeswoman, Winstohn Hewett. Two other Opus operatinbg companies, Opus South and Hill Countrty Galleria, were put into Chapter 11 bankruptcy proceedingsthis spring. For Opus Corp, “this is all reallh new territory,” Hewett said. “In our 56 years in the industry, this is the firsrt time we’ve ever run into a completre meltdown ofthe industry. We’ve never experience anything like this.
” From the company’s perspective, the problems in its East Coast division are attributable in larg part toOpus East’s 2005 GSA contract to design, financ e and build a 269,000-square-foot home for the Nationa Oceanic and Atmospheric Administration’s Center for Weather and Climatw Prediction in College Park. The project broke grounds in 2007 but, despite tacking on additional the GSA has made no payments for any Opus East workso far. The Department of Justice is defending the GSA inOpus East’s As a matter of policy, the department does not commentt when litigation is pending.
In correspondence betwee n thetwo parties, filed in court, the GSA said it has no obligatioh to provide progress payments or to modifyy the lease agreement. Still, the GSA said in the letterss that it had proposed three differentylease modifications, and all three were rejected by Opus By the third quarter of 2007, the projecft was hurting Opus East’s overalpl operations, the company said. Opus abandoned the construction site in January and sued the GSA inthe U.S. Courtg of Federal Claims in May. In the meantimee — with virtually no money available in the capitalmarketds — the company is stretched thin at severap other projects in the area.
As Opus East put the finishingy touches on 100M St. SE, its contracteds buyer, Detroit-based MayfieldGentry Realty Advisors LLC, walked away from the deal in May. Just four blockds away, its 442,000-square-foot speculative office project at 1015Half St. SE is continuingg in full swing. Even so, it’s no cake “In light of the current market until a project is leased and every spec project has the capacit y to financially impactan organization,” Hewetty said.
The company delivered Opus Hall, a 402-bedr dormitory at The Catholic Universithyof America, in January but, by unpaid contractors were filing liens against both Opus East and the At the end of May, at leasr one contractor, Joseph J. Magnolia Inc., had filedr suit for nonpayment agains t Opus East and ContinentalCasualty Co., which had issued a $30 million payment bond on the Catholic project. Although Opus Hall is ownede entirelyby Catholic, the Opus spokeswoman said the contractores should not have filed lienes against the university, only against Opus East and the In Manassas, Opus has spent the past four years planning and building Hastings Marketplace, a 13.
2-acres residential and retail project that woulcd bring the city’s first Harris Teeter grocerh store to the juncture of Prince William Parkwag and Lake Jackson Drive. But both the residentiapl and retail markets had slowed byearlh 2008, and as the economic crisis hit its full stride in the thircd quarter, the company cut the scopde of the project in half. On the things look good at Hastings: One of the two planned buildinges hasbeen delivered, and Harris Teeter is schedulefd to open any day now. But the construction lenderr cut off funding earliee this year after it determineethe property’s value had dropped far below its acceptablde loan-to-value ratio.
Unpaid contractors have filec at least four liens against theManassas property. As a Opus is particularly vulnerable to the seismic shifgt in the commercial realestat market.
sábado, 20 de octubre de 2012
'Another Level' - Wichita Business Journal:
esivyjifag.wordpress.com
The same day he arrived in Wichitasfrom Florida, he attended an Urban League Two days later, he was meeting with his new staf f and members of the boardx trying to map out a plan for the nonprofi t organization to move That was last March when Daniel, 50, becamr the new president and CEO of the Urban replacing Brian Black, who left the organization to become the community affairs manage at Daniel has been busy since. “There was no real honeymooj for me when Igot here,” he Daniel left behind 15 years of service at the Urban Leaguw of Jacksonville, where he was the vice president for economic and strategic initiatives.
In Wichita, he oversees 32 full - and part-time employees and an annual operating budge tof $1.5 million. Daniel spentg most of his first year meeting peopls in the community and promoting the Urban an organization that advocates on behalgf of blacksin education, work force development and housing. He broughtr with him a business savvt that he says serves the UrbanLeagure well. “My whole reason for bein g here is to take this organization toanothedr level,” Daniel says. He says he wants the Urban Leaguse to generate more unrestrictedr income tobecome self-sustaining and less dependent on charityy giving.
To do that, Daniel is working on a way for the Urbanm Leagueto recruit, screen and train workers for Wichita People have taken notice of his efforts. “Hew certainly seems to have a vision withinthe organization,” say Connie who works in ’s cooperative educatiom program. “He’s a great face for the Urbanh League.” Dietz, also a member of the , firs met Daniel during an Urban League diversity traininy event at WSU and wasinstantly impressed. “I thinkl (Black) laid the foundation and Chester is ready to builron it,” Dietz says. With a year under his Daniel says there’s still more work to be done. Otherd agree.
“I think the best is yet to comewith Mr. says Lee Williams, Urban League board member and presidentf ofthe . “We are going to see some greatr things that are beneficial to this Daniel is always looking for ways tobettefr himself.
The same day he arrived in Wichitasfrom Florida, he attended an Urban League Two days later, he was meeting with his new staf f and members of the boardx trying to map out a plan for the nonprofi t organization to move That was last March when Daniel, 50, becamr the new president and CEO of the Urban replacing Brian Black, who left the organization to become the community affairs manage at Daniel has been busy since. “There was no real honeymooj for me when Igot here,” he Daniel left behind 15 years of service at the Urban Leaguw of Jacksonville, where he was the vice president for economic and strategic initiatives.
In Wichita, he oversees 32 full - and part-time employees and an annual operating budge tof $1.5 million. Daniel spentg most of his first year meeting peopls in the community and promoting the Urban an organization that advocates on behalgf of blacksin education, work force development and housing. He broughtr with him a business savvt that he says serves the UrbanLeagure well. “My whole reason for bein g here is to take this organization toanothedr level,” Daniel says. He says he wants the Urban Leaguse to generate more unrestrictedr income tobecome self-sustaining and less dependent on charityy giving.
To do that, Daniel is working on a way for the Urbanm Leagueto recruit, screen and train workers for Wichita People have taken notice of his efforts. “Hew certainly seems to have a vision withinthe organization,” say Connie who works in ’s cooperative educatiom program. “He’s a great face for the Urbanh League.” Dietz, also a member of the , firs met Daniel during an Urban League diversity traininy event at WSU and wasinstantly impressed. “I thinkl (Black) laid the foundation and Chester is ready to builron it,” Dietz says. With a year under his Daniel says there’s still more work to be done. Otherd agree.
“I think the best is yet to comewith Mr. says Lee Williams, Urban League board member and presidentf ofthe . “We are going to see some greatr things that are beneficial to this Daniel is always looking for ways tobettefr himself.
viernes, 19 de octubre de 2012
$2 million gives Hosting.com ability to move quickly on acquisitions - Business First of Louisville:
elzeyfirekuut1795.blogspot.com
The problem is, conventional financing often isn’t nimblde enough to give Hosting.com the speed to deal with largde companies that want to close quickly, said Darren King, Hosting.com’sd president and CEO. To have the capita on hand, Hosting.com is gettingy a $2 million injection in the form of a mezzanind loanfrom , a private-equity firm basecd in Charlotte, N.C. CapitalSouth and Hosting signed the dealon Oct. 24, said King and Ken director of CapitalSouth’s Louisville Both King and Berryman declinee to discuss the terms ofthe deal.
But becausew mezzanine loans aresubordinatedc debt, they typically are made at a higherd interest rate and with less favorable terms than a conventiona l commercial bank loan because of the inherentlhy higher risk. , based in is Hosting.com’s senior lender. Hosting.comm is considering two acquisitions one on eachcoasg — on the way to buildinb a more geographically dispersed footprint and a greatef presence in America’s largest markets, from the Los Angeleds area to Washington, D.C., King King said Hosting.com is considering almost simultaneousz acquisitions.
The largest is a Silicoh Valley data center that was valuecat $40 million, “but we’ll get it for considerably King said. A second data center in the D.C., area is smaller, and the deal coulde close sooner, within 45 days, King said. He declinedr to identify the companies. Since opening in Louisville 10yearsd ago, Hosting.com has made four acquisitions. “Alll of the acquisitions we’ve done to date have been distressesd or noncore sales by largetelecom providers,” King said. “Whemn I go to do one of those deals, the firs t question that comes up isabout funding. ‘Cabn you guys do it fast?
Can you move I can’t afford to go out and spencd three months or six months tryinvg toraise capital,” King With the CapitalSouth loan, he can take deals directlty to his investors. “I need to make a phon call and say, ‘Guys, here’s the Do we move forward with this?’ The initial $2 million loan mighg be only the first. CapitalSouth has more than $500 million undefr management, with a per-company investment limit of $15 million, Berryman It’s that capacity that cinched the deal, King said. If CapitalSoutuh had offered $2 million “and said, ‘That’z all the money we have,’ we would have ‘We’re not interested.
We can get that from anybody.’ But they have the capacitty to lendfar more.” “We hope our $2 million is not the last investmeny we make in this company,” Berryman said If all goes it won’t be, King “In this market, I think acquisitionb opportunities are going to be cominf more and more frequently.” There are two simultaneoues information technology trends related to economicv uncertainty, King said. Large companies are turning over some IT projects to independent hostingg companies because they can give more attention toclien projects, King said.
At the same time, many giant telecommunication companies are deciding to divest theirhostiny capabilities, finding they weren’t a good match for theirt core business, King said.
The problem is, conventional financing often isn’t nimblde enough to give Hosting.com the speed to deal with largde companies that want to close quickly, said Darren King, Hosting.com’sd president and CEO. To have the capita on hand, Hosting.com is gettingy a $2 million injection in the form of a mezzanind loanfrom , a private-equity firm basecd in Charlotte, N.C. CapitalSouth and Hosting signed the dealon Oct. 24, said King and Ken director of CapitalSouth’s Louisville Both King and Berryman declinee to discuss the terms ofthe deal.
But becausew mezzanine loans aresubordinatedc debt, they typically are made at a higherd interest rate and with less favorable terms than a conventiona l commercial bank loan because of the inherentlhy higher risk. , based in is Hosting.com’s senior lender. Hosting.comm is considering two acquisitions one on eachcoasg — on the way to buildinb a more geographically dispersed footprint and a greatef presence in America’s largest markets, from the Los Angeleds area to Washington, D.C., King King said Hosting.com is considering almost simultaneousz acquisitions.
The largest is a Silicoh Valley data center that was valuecat $40 million, “but we’ll get it for considerably King said. A second data center in the D.C., area is smaller, and the deal coulde close sooner, within 45 days, King said. He declinedr to identify the companies. Since opening in Louisville 10yearsd ago, Hosting.com has made four acquisitions. “Alll of the acquisitions we’ve done to date have been distressesd or noncore sales by largetelecom providers,” King said. “Whemn I go to do one of those deals, the firs t question that comes up isabout funding. ‘Cabn you guys do it fast?
Can you move I can’t afford to go out and spencd three months or six months tryinvg toraise capital,” King With the CapitalSouth loan, he can take deals directlty to his investors. “I need to make a phon call and say, ‘Guys, here’s the Do we move forward with this?’ The initial $2 million loan mighg be only the first. CapitalSouth has more than $500 million undefr management, with a per-company investment limit of $15 million, Berryman It’s that capacity that cinched the deal, King said. If CapitalSoutuh had offered $2 million “and said, ‘That’z all the money we have,’ we would have ‘We’re not interested.
We can get that from anybody.’ But they have the capacitty to lendfar more.” “We hope our $2 million is not the last investmeny we make in this company,” Berryman said If all goes it won’t be, King “In this market, I think acquisitionb opportunities are going to be cominf more and more frequently.” There are two simultaneoues information technology trends related to economicv uncertainty, King said. Large companies are turning over some IT projects to independent hostingg companies because they can give more attention toclien projects, King said.
At the same time, many giant telecommunication companies are deciding to divest theirhostiny capabilities, finding they weren’t a good match for theirt core business, King said.
jueves, 18 de octubre de 2012
Textron cancels Cessna Columbus program - Wichita Business Journal:
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In April, the company announced it would suspendsthe program, leading Cessna leaders to say it would only be a mattetr of time until the project came back. But in Thursday’sx filing with the SEC, Textron (NYSE:TXT) said “Upon additional analysixs of the business-jet market related to this productf offering, we decided to formally cancel further developmentf of theCitation Columbus.” Textronn says it already had incurredr about $50 million in capitalized tooling and facilitu costs related to the project. It says it will record a non-casj pre-tax charge of about $43 million for the first two quarters of 2009 to reflecg the impairment of the facility andtooling assets.
Wichitqa Mayor Carl Brewer, who was in Denver Fridat at a conference, had not heard the Columbues project was being canceled until asked about it by the WichitaaBusiness Journal. “I’m disappointed,” Brewer “... We believe this is part of the future for the cityof We’re just really disappointed that it At the same time, he says, he understands the economic climate has force businesses to make tough decisions. The project was to have built 600,000-square-foot finakl assembly building at Cessna where the majorith ofthe $27 millioh business jet would be built. There was also to have been a 45,000-square-foor physical plant to serve themain building.
Constructioh costs were expected tobe $200 million and bids were put out in • • • • • Columbus, Kan.-based Inc. Apart from the loss in constructiohn jobs, the Wichita area now appeard to have lost out for good onthe 1,00o direct jobs and the 3,000 spin-of f jobs the program was estimated to It also appears likely that Cessnwa will have to pay back the $10 millio it received in city and countg incentives and the $33 million it receivedx from the state for the project. Like Brewer, Sedgwicl County Commissioner Tim Norton says he is disappointed to hear the news ofthe “I think most Wichitans and the business community looked at that as a big he says.
“It takes a little bit of the wind out of the sail for Cessna andgeneral aviation. It could have been a huge boosrt to Wichita over the next couple yeara and I think everybodysaw that.” Norton says he hopes the projecyt will be able to return somewherd down the line. The businessw plan that was putin place, he still could be a good fit.
In April, the company announced it would suspendsthe program, leading Cessna leaders to say it would only be a mattetr of time until the project came back. But in Thursday’sx filing with the SEC, Textron (NYSE:TXT) said “Upon additional analysixs of the business-jet market related to this productf offering, we decided to formally cancel further developmentf of theCitation Columbus.” Textronn says it already had incurredr about $50 million in capitalized tooling and facilitu costs related to the project. It says it will record a non-casj pre-tax charge of about $43 million for the first two quarters of 2009 to reflecg the impairment of the facility andtooling assets.
Wichitqa Mayor Carl Brewer, who was in Denver Fridat at a conference, had not heard the Columbues project was being canceled until asked about it by the WichitaaBusiness Journal. “I’m disappointed,” Brewer “... We believe this is part of the future for the cityof We’re just really disappointed that it At the same time, he says, he understands the economic climate has force businesses to make tough decisions. The project was to have built 600,000-square-foot finakl assembly building at Cessna where the majorith ofthe $27 millioh business jet would be built. There was also to have been a 45,000-square-foor physical plant to serve themain building.
Constructioh costs were expected tobe $200 million and bids were put out in • • • • • Columbus, Kan.-based Inc. Apart from the loss in constructiohn jobs, the Wichita area now appeard to have lost out for good onthe 1,00o direct jobs and the 3,000 spin-of f jobs the program was estimated to It also appears likely that Cessnwa will have to pay back the $10 millio it received in city and countg incentives and the $33 million it receivedx from the state for the project. Like Brewer, Sedgwicl County Commissioner Tim Norton says he is disappointed to hear the news ofthe “I think most Wichitans and the business community looked at that as a big he says.
“It takes a little bit of the wind out of the sail for Cessna andgeneral aviation. It could have been a huge boosrt to Wichita over the next couple yeara and I think everybodysaw that.” Norton says he hopes the projecyt will be able to return somewherd down the line. The businessw plan that was putin place, he still could be a good fit.
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