July 7 Biz Minute

Automotive parts supplier Lear Corp. filed for bankruptcy protection today after receiving support to reorganize its struggling business. The maker of vehicle seats and electronics missed an interest payment on its bond debt last week and then revealed its intention to seek bankruptcy protection from its creditors.
According to data released today by the American Bankers Association, consumer loan delinquencies edged up to another record high in the first quarter. A continued rise in unemployment has been the main culprit for the continued rise in delinquencies, the trade association said...people lose their jobs, they can't pay their bills. The IRS has temporarily stopped collecting penalties from some small businesses that have been hit with big fines. The fines, which can reach $300,000 a year, were an unintended consequence of a 2004 law aimed at big corporations using shelters to avoid taxes. Lawmakers asked the IRS last month to suspend collections while they work to change the law.
Today General Motors asked a federal bankruptcy court for permission to drop 38 U.S. dealers who have rejected the automaker's offer of a payout to wind down their operations. GM has used its bankruptcy process to slash dealerships and retail franchise obligations it says have cost it about $2 billion annually to support.
Struggling NextWave Wireless has sold a 35 percent stake in its PacketVideo subsidiary for $45 million to NTT DoCoMo, a major provider of wireless phone service in Japan. PacketVideo, based in San Diego, makes software for delivering streaming video and music to mobile phones and other devices.

Category:

News & Politics

Tags:

• Lear Corp
• American Bankers
• IRS
• General Motors
• NextWave Wireless
• PacketVideo
• NTT DoCoMo
• bankruptcy