Verilink lays off one-fifth of workers, files Chapter 11
Verilink Corp., a Centennial-based manufacturer of computer network equipment, said Monday it has laid off 20 percent of its workforce and filed for bankruptcy reorganization as it works to restructure debt.
Leigh S. Belden, president and chief executive, and Timothy Anderson, chief financial officer, also were laid off. Both will be consultants during the reorganization process.
Lee Katz, who has more than 30 years of experience in corporate restructuring, including a recent stint as director of reorganization of FirstPlus Financial Group Inc., was appointed president and CEO.
“While filing Chapter 11 is never an easy decision, we believe it will provide Verilink with the flexibility needed to address Verilink’s financial challenges and valuable ‘breathing room’ to strengthen Verilink’s financial affairs,” Katz said in a statement.
The company said the filing under Chapter 11 of the U.S. Bankruptcy Code was necessary as it tries to relieve financial pressures. It plans to operate as a “debtor-in-possession” during the reorganization.
The company said the layoffs were effective Friday but did not specify the number of employees who lost their jobs. It did not immediately return a telephone message Monday.
DENVER
RTD taking comment on Union Station
The Regional Transportation District has released the draft environmental-impact statement on proposed improvements to Denver Union Station for public review and comment.
The draft will be available for review through May 8.
A public hearing on the document will be held at 5:30 p.m. April 19 at the Colorado Convention Center, 700 14th St., Room 203. The meeting will include a presentation at 6 p.m., followed by an opportunity to comment on the document.
DENVER
New group to discuss PERA reform plans
The newly formed Colorado Coalition for Retirement Security, composed of 10 public-employee groups, will hold a news conference at noon today at the state Capitol to discuss its stance on efforts to reform the Public Employees Retirement Association.
Two bills are pending in the legislature to address an $11.3 billion shortfall in the state’s largest pension plan. Another proposed ballot measure seeks to eliminate the pension plan and replace it with a defined-contribution plan.
DENVER
Archstone-Smith sets $266 million N.Y. deal
Denver-based Archstone- Smith, one of the nation’s largest apartment companies, has paid $266 million for two high-rise apartment communities in New York City.
The purchase adds more than 450 units to the company’s portfolio, making it the largest public owner of apartments in Manhattan, with an investment of $1.8 billion in 3,745 units.
LAS VEGAS
Key investor opposes Riviera Holdings sale
The D.E. Shaw Group, an investor group that holds about 1.2 million shares in Riviera Holdings Corp., said Monday it would vote against a proposed buyout of Riviera for $17 a share because the deal undervalues the company’s casino in Las Vegas.
Riviera, which also owns a casino in Black Hawk, agreed last week to be acquired by private investment group Riv Acquisition Holdings Inc. for about $211.5 million in cash and $215 million in assumed debt.
BETHESDA, Md.
Host Marriott finishes Starwood hotels deal
Host Marriott Corp. announced Monday it has completed the acquisition of 28 hotels from Starwood Hotels & Resorts Worldwide, including downtown Denver’s Westin Tabor Center. The value of the deal, which includes 35 hotels, totaled nearly $4 billion
The 430-room Westin Tabor Center will continue to be managed by Starwood under its current flag for at least 20 years.
WESTMINSTER
Drug trial disappoints Myogen investors
Myogen Inc. stock fell Monday on concerns that two areas of the company’s latest trial for a pulmonary arterial hypertension drug didn’t show significant improvement compared with a December trial.
Shares of Westminster-based Myogen fell $2.67, 7.4 percent, to close at $33.15 on the Nasdaq Stock Market.
Several Wall Street analysts speculated Monday that investors are being overly critical about the results of the trial and believe the drug, Ambrisentan, shows superiority and efficacy compared with other drugs.
BROOMFIELD
$100 million sought in Gaiam stock sale
Gaiam Inc., a Broomfield- based lifestyle media company, filed with the Securities and Exchange Commission on Friday to sell an undetermined amount of Class A common stock to raise up to $100 million.
Gaiam said it plans to fund the expansion of its business.
SALT LAKE CITY
4 firms remain in bid for oil-shale reserves
Shell Frontier Oil & Gas Co., Chevron Shale Oil Co., Oil Shale Exploration Co. and EGL Resources Inc. are the surviving nominees after the U.S. Bureau of Land Management narrowed the field of oil companies hoping to exploit vast oil-shale reserves in Utah and Colorado, government officials said Monday.
The research-and-development leases involve 160-acre parcels of BLM land.
WASHINGTON
FDIC urged to reject Wal-Mart banking bid
Officials from the banking industry, unions and consumer groups urged regulators Monday to reject a bid by Wal-Mart Stores to expand its empire into the banking business.
A Wal-Mart official told the Federal Deposit Insurance Corp. that the company had no plans to open branches that would compete with community banks. But its bid for federal deposit insurance for a state- chartered bank in Utah that would handle the 140 million credit-card, debit-card and electronic-check payments the company processes each year could lead to the company expanding into full-scale banking with retail branches that would destroy local banks, critics said.
ST. LOUIS
Health benefits of vegetable oil touted
Vegetable oil developed by Monsanto Co. and other makers of gene-altered seeds may help boost U.S. consumption of omega-3 fatty acids that reduce heart attacks and stroke, University of Maryland researchers said.
Monsanto plans to offer soybeans that yield oils rich in omega-3 by the end of the decade. DuPont Co.’s Pioneer unit also is working on omega-3 soybeans.
