| January 10, 2012, 05:00 AM By David Espo and Kasie Hunt The Associated Press |
NASHUA, N.H. — Republican front-runner Mitt Romney stumbled down the homestretch of the New Hampshire primary on Monday, declaring, “I like being able to fire people who provide services to me” as his rivals intensified already fierce criticism. “Gov. Romney enjoys firing people. I enjoy creating jobs,” said former Utah Gov. Jon Huntsman, who has staked his candidacy on a strong showing in Tuesday’s primary and has shown signs of gaining ground in recent polls. Adding insult to any injury, Texas Gov. Rick Perry posted a ringtone to his campaign website that consisted of Romney saying, “I like being able to fire people,” over and over. Romney is the odds-on favorite in New Hampshire, and Huntsman as well as other Republicans who are contesting the state have generally been content to vie for second place in hopes of emerging as his main rival in the South Carolina primary on Jan. 21. “Second place would be a dream come true,” said former Pennsylvania Sen. Rick Santorum, as he raced through a final full New Hampshire campaign day that began before sunrise and stretched for more than 14 hours. The former Pennsylvania senator finished a surprising second in last week’s Iowa caucuses, but without money for television ads he has appeared to struggle as he seeks to convert that into momentum. Romney, the former Massachusetts governor, won in Iowa by eight votes. A victory in New Hampshire would make him the first Republican in a contested presidential nomination battle to capture the first two races of the campaign since Iowa began leading off for the GOP in 1976. The battle has grown increasingly rancorous in recent days — both in New Hampshire and next-up South Carolina — with Santorum, Perry and former House Speaker Newt Gingrich escalating their attacks on Romney’s claim that a background in business uniquely qualifies him to help create American jobs. At the same time, an organization that backs Gingrich has spread the word that it intends to spend $3.4 million on television ads in South Carolina that are expected to attack Romney with gusto. “Now we’ll see if he has the broad shoulders and can stand the heat,” said Gingrich, relishing the battle ahead as the nominating campaign wheels South. Romney’s remark about firing people was the second jarring moment for the front-runner in the span of less than 24 hours. On Sunday afternoon, the millionaire businessman told an audience that he understood the fear of being laid off, adding, “there were a couple of times when I was worried I was going to get pink-slipped.” His aides refused to provide details. On Monday morning, addressing the Nashua Chamber of Commerce, he said he wants individuals to be able to choose among different health insurance policies as they seek coverage. “That means the insurance company will have an incentive to keep you healthy. It also means if you don’t like what they do, you can fire them,” he said. “I like being able to fire people who provide services to me. If someone doesn’t give me the good service I need, I’m going to go get somebody else to provide that service to me,” he added. A few hours later, in a previously unscheduled appearance before reporters, Romney emphasized he had been talking about insurance companies. “Things can always be taken out of context, and I understand that’s what the Obama people will do. But as you know I was speaking about insurance companies and we need to be able to make a choice and my comments entirely reflected that discussion.” As for once fearing he would be fired, he said, “I came out of school, and I got an entry level position like the other people that were freshly minted MBAs, and like anybody that starts at the bottom of an enterprise you wonder, when you don’t do so well, whether you’re going to be able to hang onto your job.” Romney has made his career in business the core credential of his candidacy, saying that his firm, Bain Capital, created 100,000 jobs on balance as it started some firms while taking over, remaking and then spinning off others. Gingrich told one interviewer during the day that Bain Capital “apparently looted the companies, left people totally unemployed and walked off with millions of dollars.” He wasn’t asked to provide details. But Perry, campaigning in Anderson, South Carolina, was — and did. “If you’re a victim of Bain Capital’s downsizing, it’s the ultimate insult for Mitt Romney to come to South Carolina to tell you he feels your pain. Because he caused it,” he said. ‘I have no doubt that Mitt Romney was worried about pink slips — whether he’d have enough of them to hand out.” He cited Holson Burns Group Inc. of Gaffney, S.C., where he said 150 workers who made photo albums lost their jobs. “They looted that company,” Perry said, referring to Bain Capital. Santorum’s message in New Hampshire was the same as it had been in Iowa. “Give us an opportunity to be the conservative alternative,” he said. He sidestepped questions about his proposal to reduce or eliminate Social Security benefits for wealthier beneficiaries, saying efforts by reporters to obtain specifics were “gotcha games.” Even though he runs second in some of the New Hampshire polls, Texas Rep. Ron Paul campaigned lightly in the state. He unveiled a new television ad in South Carolina that took aim at Santorum. It notes the former senator’s votes against right-to-work legislation and in favor of increases in the federal debt ceiling. “Rick Santorum, a record of betrayal, another serial hypocrite who can’t be trusted,” it says. Protesters with Occupy and Paul signs swarmed events in Manchester hosted by Gingrich and Santorum. Outside a sports bar, they pushed toward Santorum as he made his way to his car, surrounded him and at times jostled his children. Police stepped in to get the Santorums to their cars. Gingrich canceled an appearance at his state campaign headquarters after about 40 protesters gathered at its entrance. His spokesman, R.C. Hammond, said the former House speaker’s private security detail had security concerns. ———————— GOP rivals turn Romney’s jobs record against him AP Photo NHCD110, NHCD106, NHCD109 Eds: Corrects that S.C. ads from pro-Gingrich group have not started airing. With AP Photos. By KASIE HUNT and CHARLES BABINGTON Associated Press NASHUA, N.H. (AP) — Mitt Romney’s Republican rivals accused him Monday of exaggerating his successes and coldly laying off thousands of workers while heading a profitable venture capital firm, an effort to turn the presidential front-runner’s biggest asset into a liability. The heightened focus on the firm Bain Capital threatens to slow Romney’s cruise-control campaign because it goes to the heart of his No. 1 appeal to voters: the claim that he knows far more than President Barack Obama about creating jobs. Romney’s takeover-and-restructuring firm “apparently looted the companies, left people unemployed and walked off with millions of dollars,” former House Speaker Newt Gingrich said on NBC’s “Today” show. A group friendly to Gingrich is preparing to air TV ads of laid-off workers denouncing Romney, who interrupted his time at Bain to serve as Massachusetts governor. Texas Gov. Rick Perry joined in. He cited South Carolina companies that Bain bought and downsized, and he practically dared Romney to ask for voters’ support there in the name of easing economic pain. “He caused it,” Perry said in Anderson, S.C. Romney points to thousands of jobs created at companies that Bain bought, invested in or restructured. But he struck a discordant note Monday, just as attention to the Bain jobs history was spiking. Speaking of insurance options before a New Hampshire audience, Romney said, “I like being able to fire people who provide services to me.” He remained favored to win Tuesday’s New Hampshire primary. But his rivals might improve their hopes of halting his momentum in South Carolina’s Jan. 21 primary if they can persuade voters that his jobs legacy is not what he claims. Thanks to millions of dollars from a Las Vegas casino owner who supports Gingrich, TV ads in South Carolina will try to do just that. Like many attack ads they are emotional, one-sided and not subtle. They show angry victims of layoffs from Bain-controlled companies, according to excerpts shown to reporters. “We had to load up the U-Haul because we done lost our home,” a woman says. On the campaign trail, Romney rarely mentions his four years as governor unless asked. But he constantly touts his time in the private sector, asking voters to trust his instincts and experience in creating jobs. The claims rely on Romney’s career at Bain, a Boston-based private equity firm that poured investors’ money, and Bain executives’ expertise, into more than 100 companies in the 1980s and ‘90s. Some of the companies thrived and expanded. Some took on unsustainable debt and went bankrupt. Some became leaner or were broken into various parts, shedding jobs and improving profits. In a recent debate, Romney repeated his claim that the Bain-run companies netted a total increase of 100,000 jobs. Studies by The Associated Press and other news organizations conclude that the claim doesn’t withstand scrutiny. That alone, however, hardly suggests Romney was an unsuccessful business executive. He became wealthy, a hero to many entrepreneurs, and the leader of the much-praised 2002 Winter Olympics. The 100,000 jobs claim comes from activities at only three companies, all of them successes: Staples, Domino’s and Sports Authority. However, it counts many jobs that were created after Romney left Bain in 1999. And it ignores job losses at many other firms that Bain invested in or took over. The Wall Street Journal, which examined 77 businesses that Bain invested in during Romney’s tenure, concluded Monday that the record is mixed. Twenty-two percent of the companies closed down or filed for bankruptcy reorganization within eight years, “sometimes with substantial job losses,” the Journal reported. “Bain produced stellar returns for its investors,” the paper reported. But 70 percent of the profits came from 10 deals. A separate AP analysis found that at least 4,000 workers lost their jobs at 45 companies bought by Bain between 1984 and 1994, according to company reports, news releases and news coverage. The tally probably is higher, because it does not include other jobs lost in bankruptcies and other store and factory closings. Like any venture capital company, Bain’s main purpose was to generate profits for investors, not to create jobs. So it is easy for political campaigns to find dazzling success stories and heartbreaking plant closures in the company’s history. A new 28-minute film, “King of Bain,” portrays Romney as a profit-driven predator. A pro-Gingrich super PAC bought the film and plans to use excerpts for the attack ads in South Carolina. The group says it will post the entire film online. Gingrich’s struggling campaign has been helped by $5 million given to the super PAC by casino owner Sheldon Adelson. Obama’s campaign aides have long considered the Bain record to be Romney’s weakest spot, more damaging than his much-discussed flips on abortion and other issues. Romney told reporters Monday in New Hampshire that the attacks from Gingrich and Perry surprised him. “Free enterprise will be on trial” in the 2012 election, Romney said. “I thought it was going to come from the president, from the Democrats, from the left. But instead it’s coming from Speaker Gingrich and apparently others, and that’s just part of the process. I’m not worried about that.” Romney’s record at Bain has both helped and hurt his political career for nearly two decades. Bain was a pioneer in the often lucrative practice of “leveraged buyouts,” which involve heavy borrowing against the assets of a just-purchased company, and sometimes aggressive restructuring. Romney’s role there is generally lauded in corporate circles. But in his unsuccessful 1994 Senate bid, Democrats ran ads featuring a worker who lost his job after Bain bought and restructured American Pad & Paper. According to The Wall Street Journal, the deal generated $102 million in investment gains. But Ampad filed for bankruptcy protection in 2000. ——— Babington reported from Washington. Associated Press writers Stephen Braun in Washington and Brian Bakst in South Carolina contributed to this report. Press writers Brian Bakst, Thomas Beaumont and Jim Davenport in South Carolina and Holly Ramer, Shannon McCaffrey, Philip Elliott and Beth Fouhy in New Hampshire and Stacy A. Anderson in Washington contributed to this report. Espo reported from Washington. SOURCE |
Tuesday, January 10, 2012
Fire whom? Romney draws flak before N.H. primary
Victory! Grand Canyon Protected from New Uranium Mining!
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Monday, January 9, 2012
No More Twinkies?
Hostess Brands Preparing for Chapter 11 Filing
By MIKE SPECTOR And JULIE JARGON
Hostess Brands Inc. is preparing to file for Chapter 11 bankruptcy protection as soon as this week, said people familiar with the matter, a move that would mark the second significant court restructuring for the Twinkie and Wonder Bread baker in the past several years.
The privately held Irving, Texas, company, which employs roughly 19,000 people and carries more than $860 million in debt, has been facing a cash squeeze amid high labor costs and rising prices for sugar, flour and other ingredients, according to people familiar with the matter. Those costs together have proved higher than the company's roughly $2.5 billion in annual sales, creating losses and cash shortfalls, they said.
Hostess also currently owes more than $50 million to vendors, which have been demanding payments on shortened timeframes after delivering goods because of Hostess's financial condition, one of the people said.
Hostess's filing would mark what's known as a "Chapter 22" in restructuring circles, since the company had already sought bankruptcy protection once before. Hostess, before called Interstate Bakeries Corp., slashed debt and costs during a four-year stint in bankruptcy court that began in 2004. The company has struggled since emerging from bankruptcy proceedings in February 2009.
The company's private-equity owner, Ripplewood Holdings, invested $40 million in Hostess last year to no avail. Hedge funds Monarch Alternative Capital, Silver Point Capital and others loaned the company $20 million late last year, but Hostess continues to have cash problems.
Hostess has lined up around $75 million in so-called debtor-in-possession financing to keep the company afloat during bankruptcy proceedings, the people said. Monarch, Silver Point and some other investors have agreed to extend the bankruptcy financing, with an option for other senior creditors to provide parts of the loan, the people said.
Once in bankruptcy court, Hostess will try to reduce debt and renegotiate labor contracts, many of them with the International Brotherhood of Teamsters and the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union, the people said. Hostess plans to file court papers soon threatening to reject or modify labor contracts under applicable bankruptcy rules, the people said. Such moves provide troubled companies a bargaining chip to try and get concessions from unionized workers.
A Teamsters spokesman declined to comment. A spokeswoman for Hostess's other main union didn't immediately respond to a request for comment.
Sales of Hostess's signature Twinkies have recently declined a bit while the overall bakery snacks category has been about flat. Nearly 36 million packages of Twinkies were sold in the year ending Dec. 25, down almost 2% from a year earlier, according to data from SymphonyIRI Group, a Chicago-based market research firm. The data captures sales from supermarkets, drugstores, mass-market retailers and convenience stores, but excludes sales from Wal-Mart Stores Inc. and club stores.
Even so, Hostess has had trouble attracting consumers who have migrated away from white bread to whole grains and other healthier foods. Hostess released a whole-grain bread called Nature's Pride, but it hasn't sold well amid a small presence on shelves.
In addition, Hostess kept prices relatively high, making it harder to charge even more as costs for ingredients and fuel rose.
Hostess's bankruptcy filing would join the ranks of other companies forced to seek bankruptcy protection a second time in recent years. Between 2007 and 2011, more than 50 companies commenced "Chapter 22" bankruptcy cases, according to the most-recent data compiled by Edward Altman, a New York University finance professor.
One of Hostess's challenges will be to avoid liquidation, the fate of some other companies seeking bankruptcy protection a second time. In the past several years, for instance, Hollywood Video chain owner Movie Gallery Inc. and Polaroid Corp. have gone out of business after seeking bankruptcy protection a second time.
Others have survived multiple bankruptcies, including auto supplier Hayez Lemmerz International and Pliant Corp., a packaging company acquired after its second reorganization.
One sticking point for the baker: It pays about $100 million a year into so-called multi-employer pension plans that cover workers at a wide array of companies, the people said. Hostess, whose pension plan is underfunded by about $2 billion, wants to rescind its obligations to that plan and start paying into a plan that only covers its own workers, one of the people said.
Overall, Hostess carries hundreds of separate labor contracts that the company believes imposes cost burdens, people familiar with the matter said; the company also wants to reduce benefits costs.
The company also hopes that in bankruptcy it can attract new capital to bring production and distribution operations up to date, one of the people said.
Interstate Baking Co., the name Hostess used to go by long ago, was formed in 1930. Some brands Hostess still sells, including Drake's cakes, predate the company. In its infancy, the company made loaves of bread for grocery stores to sell.
In the 1960s and 1970s, the company grew by acquiring several other baking outfits across the U.S. By 1995, the company had changed its name to IBC, and purchased its largest rival, Continental Baking Co., for $330 million, maker of Wonder Bread.
Hostess is being advised by law firm Jones Day and financial services firm Perella Weinberg Partners. Hostess creditors are being advised by investment bank Lazard Ltd.
The Gingrich Jobs and Growth Plan
My commentary first:
Dave Peatfield January 09, 2012
The Gingrich Jobs and Growth Plan
OTHER VIDEO'S OF INTEREST:
(Be informed and make an informed decision in 2012 our country's future depends on it!)
Gingrich takes on Romney in NH debate
Newt Gingrich on New Hampshire, South Carolina and Mitt Romney
Newt Gingrich Mocks President Obama-Hilarious!
Dave Peatfield January 09, 2012
As a solid Independent in the State of New Hampshire, it is a deliberate choice I have made and not indecision that led me there. I listen to all candidates very carefully and choose my future by having all the facts necessary to make an informed choice! Committing ones self to one party is narrow minded and not always the best choice in all instances.
Our country has been dramatically impacted by the divided thought process of going with the "best argument" instead of the right agreement. Working together is the foundation of every success story, and our nation is far from a success story at this moment in history. I believe we have lost our focus on "one nation."
A contract with America is a sound plan. Hold Senator's and Congressional Leader's accountable for their actions and work from a PLAN instead of a personal agenda. When a business is deviating from it's goals a critical path is developed to help steer it in the right direction. A set of common goals is what our country needs to be successful. After all, you and I have plans and goals that need to be met in our careers and everyday lives, why shouldn't the people that govern us be monitored and measured to an acceptable standard of a passing grade or lay THEM off. It is high-time they be held accountable for their actions on a daily basis.
Put the pledge of allegiance back into our schools before our children forget it as well.
"I pledge allegiance to the flag of the United States of America, and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all."
I pledge! Do you?
- Dave Peatfield
The Gingrich Jobs and Growth Plan
America only works when Americans are working. Newt has a pro-growth strategy similar to the proven policies used when he was Speaker to balance the budget, pay down the debt, and create jobs. The plan includes:
- Stop the 2013 tax increases to promote stability in the economy. Job creation improved after Congress extended tax relief for two years in December. We should make the rates permanent.
- Make the United States the most desirable location for new business investment through a bold series of tax cuts, including: Eliminating the capital gains tax to make American entrepreneurs more competitive against those in other countries; Dramatically reducing the corporate income tax (among highest in the world) to 12.5%; Allowing for 100% expensing of new equipment to spur innovation and American manufacturing; Ending the death tax permanently.
- Move toward an optional flat tax of 15% that would allow Americans the freedom to choose to file their taxes on a postcard, saving hundreds of billions in unnecessary costs each year. This optional flat tax system will preserve deductions on charitable giving and home ownership, and create a new personal deduction of $12,000 for every American. This deduction is well above the current poverty level, ensuring that this new system does not unfairly target the poor.
- Strengthen the dollar by returning to the Reagan-era monetary policies that stopped runaway inflation and reforming the Federal Reserve to promote transparency.
- Remove obstacles to job creation imposed by destructive and ineffective regulations, programs and bureaucracies. Steps include: Repealing the Sarbanes-Oxley Act, which did nothing to prevent the financial crisis and is holding companies back from making new investments in the U.S; Repealing the Community Reinvestment Act, the abuse of which helped cause the financial crisis; Repealing the Dodd-Frank Law which is killing small independent banks, crippling loans to small businesses and crippling home sales; Breaking up Fannie Mae and Freddie Mac, moving their smaller successors off government guarantees and into the free market; Replacing the Environmental Protection Agency with an Environmental Solutions Agency that works collaboratively with local government and industry to achieve better results; and Modernizing the Food and Drug Administration to get lifesaving medicines and technologies to patients faster.
- Implement an American energy policy that removes obstacles to responsible energy development and creates jobs in the United States.
- Balance the budget by growing the economy, controlling spending, implementing money saving reforms, and replacing destructive policies and regulatory agencies with new approaches.
- Repeal and replace Obamacare with a pro-jobs, pro-responsibility health plan that puts doctors and patients in charge of health decisions instead of bureaucrats.
- Fundamental reform of entitlement programs with the advice and help of the American people. Read an extended white paper on this here.
(Be informed and make an informed decision in 2012 our country's future depends on it!)
Newt Gingrich on New Hampshire, South Carolina and Mitt Romney
Newt Gingrich Mocks President Obama-Hilarious!
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