Streetwear Company, Karmaloop, Inc., Files for Chapter 11 Protection

On March 23, 2015, Karmaloop, Inc., and one of its affiliates, KarmaloopTV, Inc., filed voluntary petitionsunder chapter 11 of the Bankruptcy Code in Delaware. Karmaloop is based in Boston Massachusetts. The cases are docketed as case 15-10635, and have been assigned to The Honorable Kevin Gross.

The Declaration of Brian L. Davies, Jr.was filed in support of the petitions and various first-day motions. Mr. Davies is the Managing Director at CRS Capstone Partners, LLC, and is currently engaged as the Chief Restructuring Officer of the debtors. Mr. Davies had previously served as the interim CFO for Karmaloop.

According to Mr. Davies declaration, Karmaloop was founded in 1999 and specializes in the sale of global streetwear fashion and culture. According to Mr. Davies, the debtors businesses have fallen victim to the shift in retail purchasing that is occurring, especially among retailers in the young adult age bracket, as such consumers have moved away from purchasing traditional brands. Mr. Davies also cites to lack of capital, inability to fully adapt to business strategies that result in better margin opportunities, and over-ambitious expansion efforts, as reasons for the debtors financial crisis.

The Davies Declaration notes that the debtors are in default under their prepetition senior facility. As a result of the rapidly deteriorating liquidity position, the debtors were forced to file chapter 11 with a goal of salvaging their brands and business through a going concern sale. To meet those objectives, Mr. Davies indicates in his declaration that the debtors prepetition senior lenders have proposed to provide debtor-in-possession financing.

In addition to the senior debt facility, the debtors have two levels of junior secured debt, according to Mr. Davies. Approximately $10 million is owed to Eastward Capital Partners V, LP, and another $15 million of debt owed to other junior and subordinated secured lenders. In addition to certain trade debt, the Debtors also owe certain creditors unsecured amounts on promissory notes and loans. These total approximately $22 million.

ComCap Acquisition LLC, which is an affiliate of one or more of the pre-petition senior lenders, has agreed to act as stalking horse for the proposed 363 sale, according to Mr. Davies.

Standard Register Commences Voluntary Chapter 11 Reorganization, Enters …

DAYTON, OHMarch 12, 2015The Standard Register Co. today announced that it and its subsidiaries have filed voluntary petitions under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware.

The company also announced that it is pursuing a sale process and has entered into an acquisition agreement with an affiliate of Silver Point Capital, LP The agreement was submitted to the Bankruptcy Court today. Under the proposed agreement, the companys assets will be sold for approximately $275 million plus the assumption of certain other liabilities. The sale agreement contemplates a Court-supervised auction process, which is designed to facilitate a competitive sale process. Subject to the results at auction, the closing of the transaction is subject to the satisfaction of usual and customary conditions, including obtaining Court approval and all necessary regulatory consents. The company believes that this sale will right-size the business balance sheet by significantly reducing its outstanding indebtedness and other liabilities to better position the business for long-term growth and profitability in the hands of a capable buyer. Silver Point Capital is a private investment firm managing approximately $8.5 billion.

The company is supported by its existing secured lenders, including Bank of America, NA and Silver Point, who have agreed to extend $155 million in financing in the form of a debtor-in-possession (DIP) credit facility. The DIP facility should provide the Company with ample liquidity to facilitate its sale process and to fund operations. The company also has filed and expects to obtain approval for various customary motions seeking court authorization to continue to support its business operations during the sale process, including honoring employee wages and benefits in the ordinary course and honoring its customer programs. The company intends to pay suppliers under normal terms for goods and services provided on or after the filing date of March 12, 2015. The Company appreciates the support of its customers and suppliers and expects to continue its relationships with them in the ordinary course of business.

Standard Register has a fundamentally stable underlying business with a large, diverse customer base and a strong portfolio of solutions that include integrated communications, product marking and decoration (labels), document management, promotional marketing and technology/professional services, but our ability to invest in growth has been hampered by our debt structure and legacy liabilities, said Joseph P. Morgan, Jr., president and CEO.

In response to the traditional print market decline, Standard Register repositioned itself as a market focused integrated communications provider where today, the majority of both revenue and profit are being derived.

Morgan concluded, The Board and management team have conducted a rigorous assessment of all of our strategic options and believe that this process represents the best possible solution for Standard Register. We are grateful for the support of our lenders and have sufficient financing to fund our operations as we complete a process that should result in greater flexibility for investment in the future. We are thankful to our dedicated employees who continue to work diligently to deliver value and a high level of customer service.

As recently announced, Kevin Carmody, a Practice Leader with McKinsey Recovery amp; Transformation Services US, LLC, has been appointed Chief Restructuring Officer. The company indicated that it expects to provide additional details with respect to the Chapter 11 filing as soon as they are available.

The companys shareholders are cautioned that trading in shares of the companys common stock during the pendency of the bankruptcy process will be highly speculative and will pose substantial risks. The company believes it is probable there will be no recovery for any equity holder in the bankruptcy proceedings. Accordingly, the company urges extreme caution with respect to existing and future investments in its common stock.

Standard Registers legal advisor for the Chapter 11 proceedings is Gibson, Dunn amp; Crutcher LLP. Lazard Freres amp; Co. LLC serves as financial advisor to the Company.

About Standard Register
Standard Register is trusted by the worlds leading companies to advance their reputations and add value to their operations by aligning communications with corporate brand standards. Providing market-specific insights and a compelling portfolio of workflow, content and analytics solutions to address the changing business landscape in healthcare, financial services, manufacturing and retail markets, Standard Register is the recognized leader in the management and execution of critical communications.

Source: Standard Register.

Houston company plans to ‘actively participate’ in Quicksilver bankruptcy …

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The news came two months after Quicksilver (OTCQB: KWKA) was delisted from the New York Stock Exchange. The company announced plans to lay off 10 percent of its workforce last month. Its stock price is down 98 percent over the last 12 months.

Quicksilvers strategic marketing process has not produced viable options for asset sales or other alternatives to fully address the companys liquidity and capital structure issues, CEO Glenn Darden said in a statement. We believe that Chapter 11 provides the flexibility to accomplish an effective restructuring of Quicksilver for its stakeholders.

Officials with Quicksilver could not be reached to elaborate.

Quicksilver filed motions with the court to continue normal operations, including court approval to continue paying employees and royalty obligations, according to Quicksilvers investor relations site. Suppliers will be paid in full for all goods and services provided after the filing date as required by bankruptcy laws.

One vendor, Crestwood Midstream Partners, said recently that it expects to be paid $9 million for services in February alone. The Houston-based pipeline company said it plans to actively participate in Quicksilvers bankruptcy proceedings.

The filing includes all of Quicksilvers US subsidiaries. The companys Canadian subsidiaries were not included in the filing. Instead, Quicksilver reached an agreement with its first lien secured lenders that lasts until June 16.

The company set up a toll-free restructuring information hotline for employees, suppliers, royalty owners and investors.

The company hired Akin Gump Strauss Hauer Feld LLP to act as legal advisers. Houlihan Lokey Capital Inc. is serving as financial adviser.

Quicksilver is the latest victim of falling oil prices. West Texas Intermediate crude oil hit a six-year low Tuesday, trading below $44 a barrel. Crude oil has lost more than 50 percent of its value since June, when it was trading over $100 a barrel. Natural gas prices have never really recovered from the 2008 crash, staying below $5 per British thermal unit. On Tuesday, it traded below $3 per Btu.

The company reported that it has 1 million gross acres and nearly 4,000 gross wells producing 242 million cubic feet of natural gas per day. Quicksilvers own financial report estimated the companys value at $2 billion in November.

Quicksilver fell on hard times, first in 2008-2009 when natural gas prices collapsed, hurting the companys Barnett Shale operations. Like many drillers, Quicksilver headed to West Texas Permian Basin, where it drilled horizontally through the shale for crude oil.

These horizontal shale wells are costly to drill and require hydraulic fracturing, which also adds to the cost.

In 2013, Quicksilver entered i nto a joint venture with Eni, an Italian driller, to share the cost for the West Texas drilling operations.

The company also formed a joint venture with Tokyo Gas for drilling in the North Fort Worth region of the Barnett Shale, including a well near Texas Motor Speedway.

In May, 2014, Quicksilver sold its Colorado assets to Southwestern Energy Company, a transaction worth $180 million.

Nicholas covers the energy, manufacturing, aviation and transportation beats for the Dallas Business Journal. Subscribe the Energy Inc. newsletter

5 Bad Money Habits You Can Break Today

Bad habits. Theyre pesky, arent they?

Every once in awhile I catch myself in a bad habit. They almost seem inevitable. But Im always determined to squash them as soon as I recognize them. Im sure youre in the same boat.

When it comes to bad financial habits, there are some serious ones that can cost you thousands of dollars. Which of these habits are you guilty of committing?

1. Spending With Credit Cards When You Cant Afford It

Credit card interest rates are regularly well above 10%. That translates into a lot of interest charges if you dont pay off your credit card every month. Worse yet, many people get stuck in a cycle of credit card debt – a habit that seems to just not go away.

Many people make what they consider to be educated guesses as to whether they can afford to put new clothes or high-tech gadgets on their credit cards. The problem is that those who do often dont really know their future expenses.

If youre living paycheck to paycheck, even small emergency expenses can be enough to make you late on your credit card payments. And if youre late once, its so easy to push off paying your credit card debt until youre really hurting. Furthermore, late payments can hurt your credit, and if your credit score drops low enough it can mean higher interest rates for you in the future. (You can see how your credit card debt is affecting your credit by getting your credit scores for free on Credit.com.)

Unless youre entirely sure you can pay off your credit cards every month, you may want to seriously consider not using them.

You may be asking, Hey Jeff, Im not sure how to stop using credit cards – I cant afford to live without them!

Thats a difficult situation, no doubt. In that case, youre going to have to look at both your income and expenses to determine where you can make improvements so you don’t have to depend on credit to make ends meet.

What Is Your Lifetime Cost of Debt?How much will you pay in interest over your lifetime? You may be surprised. Find Out Now

2. Not Tracking Your Transactions With a Budget

One of the best advantages of tracking your transactions is that you can see very clearly where you spent your money over time.

Try tracking your spending for a month (there are free budgeting software programs that can help with that, too). If you havent ever given a second thought to spending, this exercise will certainly help you do that.

When the month is over, categorize and add up your expenses. Many people overspend on the following categories:

  • Groceries
  • Clothing
  • Entertainment
  • Eating Out

These are categories you should monitor carefully.

Once you know how much youre spending in your categories, make a few goals. Try lowering how much youre allowed to spend in your problem categories incrementally, month by month.

Over time, because youve been tracking your categories and paying attention to your spending habits, youll find you can lower your budget category allocations – saving you thousands of dollars.

3. Waking Up Late

Im convinced that waking up late affects your finances. Allow me to explain.

All of us are pressed for time. If youre like many out there, you dread the alarm clock and reach for the snooze button too many times (that is, more than zero times).

But I bet theres something youd love to do if only you had more hours in the day. Maybe youd exercise, start a side business, or take some online classes. These are all activities that can either directly or indirectly result in more income.

For example, if you take some online classes, you can learn a useful and marketable skill that can earn you a raise, promotion or a better job.

Personally, I found that by waking up early I can have a few morning routines that get me pumped for my day ahead. The later I wake up, the less productive I feel, and the less productive I am.

You can also fill those early morning hours with some of those activities you always wanted to get to but never could. You just might find that even if you dont consider yourself to be a morning person, you could become one.

Instead of focusing on ways to improve your finances through just financial means, look at your entire life – its not as compartmentalized as it may seem and can have profound consequences on your money.

4. Consuming to Hopefully Find Contentment

Something deep down in me cringes when I hear businesses call people consumers. Sure, people consume, but thats not all they do. But maybe businesses sometimes refer to people as consumers because thats what so many do too often: they consume.

Ask yourself if you consume more than you produce. Is your goal in the morning to wake up and say, I wonder how I can please myself today? Or, is your goal to serve others?

Albert Einstein was quoted in the June 20, 1932 New York Times as saying: Only a life lived for others is the life worth while. Theres so much wisdom to that.

But there are other benefits to serving others above ourselves, as well. Have you noticed that when youre busy serving others and making money, you spend less? Perhaps youve noticed the reverse.

Dont consume to seek contentment. Contentment isnt found in consumption, its found in servanthood. Follow this advice, and youll likely keep more cash in your wallet, too.

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5. Using Investment Accounts as Emergency Funds

It happens from time to time. Ive seen a few of my clients raid their investment accounts to pay for emergencies. Sometimes, it even becomes habitual. I understand why they do it, but the tax penalties can be high.

Also, if you use your investment accounts as emergency funds, youll lose all that potential earning power when you have to dip into it for emergencies.

A better plan is to have a high-yield savings account nicknamed emergency fund and not touch it unless theres a true emergency. And dont fool yourself, you really do need an emergency fund.

There are a whole host of emergencies that can crop up when you least expect it: lawsuits, medical bills, job loss, the list goes on and on.

Heres one habit you should get into: taking extra money youve earned every month and pouring it into your emergency fund. You may even put monetary gifts youve received into your emergency fund until youve filled it up (I recommend three to eight months’ worth of expenses).

Say Hello to More Money

Bad financial habits arent always easy to correct. Ill be honest with you, its often very difficult. It requires a shift in the way you think about money.

You might have some bad financial habits right now you dont know about. Brainstorm! Find every last one if you can. You can break a bad habit in less than a month if you stay focused.

Do it. Its worth it.

More Money-Saving Reads:

  • What’s a Good Credit Score?
  • What’s a Bad Credit Score?
  • How Credit Impacts Your Day-to-Day Life

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New Amazon Prime Credit Card Offers 5% Cash Back

Amazon and Synchrony Bank released a new credit card offer for Amazon Prime customers last week, offering 5% cash back on qualifying purchases and even promotional financing for orders over $149.

The store credit card is a credit product you may be familiar with at bricks-and-mortar retailers. Often, these cards offer a discount at sign-up, and promises of exclusive discounts or or coupons in the future. With the 5% cash-back offer on all purchases, is the new Prime card a good fit for frequent Amazon shoppers?

How This Card Works

Subscribers to Amazons Prime service are eligible to receive 5% cash back on qualifying Amazon.com purchases as a statement credit. Or, they can receive a variety of promotional finance offers. For example, cardholders will pay no interest on charges of $149 or more if the balance is paid in full within six months of purchase. Otherwise, the standard interest rate of 25.99% will apply. In addition, new applicants will receive an Amazon.com gift card loaded into their account instantly upon approval.

This card is offered by Synchrony Bank, and is not affiliated with any payment network, so it is only valid for purchases from Amazon. Applicants must be members of Amazon Prime, which costs $99 per year and includes free two-day shipping and access to their streaming video and music services. There is no annual fee for this card, but cardholders must be current Amazon Prime subscribers to receive the 5% discount or the promotional financing offers.

There are other store cards and credit cards that also allow you to save money on Amazon purchases. Here are a few offers so you can weigh your options.

Know Your Score Before You ApplyGet your FREE Credit Score and see what the banks will see before you apply. Learn ways to improve it with your personalized Action Plan. Always FREE updated every 30 days. Get Started Now

Amazon.com Rewards Visa Card From Chase

Chase offers this card that earns 3% back for purchases from Amazon.com, 2% back at gas stations, restaurants and drugstores, and 1% back on all other purchases, and is accepted anywhere Visa is. New cardholders also receive a $30 Amazon.com gift card applied to their account at the time of approval. There is no annual fee for this card.

Sallie Mae MasterCard From Barclaycard

This card offers 5% cash back on the first $250 cardholders spend each month on gas and grocery purchases, and the first $750 spent each month on eligible book purchases. Interestingly, Amazon.com is coded as a book store, a legacy of their early origins as just a book retailer. Cardholders earn 1% cash back on all other purchases, and there is no annual fee for this card.

SimplyCash Business Card From American Express

Another strategy for getting discounts from Amazon purchases is to use Amazon gift cards, which can be purchased at some office supply stores. The SimplyCash Business Card from American Express offers 5% cash back for purchases at US office supply stores and on wireless telephone services. It also features 3% cash back on a category of your choice including airlines, hotels, car rentals, gas stations, restaurants, advertising and shipping, and on all other purchases. There is no annual fee for this card.

Blue Cash Preferred Card From American Express

This card offers 6% cash back on up to $6,000 spent each year at US supermarkets, which often sell gift cards for Amazon. In addition, this card offers 3% cash back for purchases from select US department stores, and 1% cash back on all other purchases. There is a $75 annual fee for this card.

Before you apply for any credit card, it can be helpful to check your credit standing so you can target your search to credit cards that fall within your credit range. You can get two of your credit scores for free on Credit.com, and theyre updated every 30 days.

At publishing time, the SimplyCash Business Card from American Express and Blue Cash Preferred Card from American Express are offered through Credit.com product pages, and Credit.com is compensated if our users apply for and ultimately sign up for any of these cards. However, this relationship does not result in any preferential editorial treatment.

Note: Its important to remember that interest rates, fees and terms for credit cards, loans and other financial products frequently change. As a result, rates, fees and terms for credit cards, loans and other financial products cited in these articles may have changed since the date of publication. Please be sure to verify current rates, fees and terms with credit card issuers, banks or other financial institutions directly.

More on Credit Cards:

  • How to Lower Your Credit Card Interest Rates
  • 6 Smart Credit Card Strategies
  • How to Get a Credit Card With Bad Credit

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Note: Its important to remember that interest rates, fees and terms for credit cards, loans and other financial products frequently change. As a result, rates, fees and terms for credit cards, loans and other financial products cited in these articles may have changed since the date of publication. Please be sure to verify current rates, fees and terms with credit card issuers, banks or other financial institutions directly.

USA Synthetic Fuel Corporation Files Bankruptcy; Will Pursue A Sale

On March 17, 2015, following the lead of Quicksilver Resources Inc., USA Synthetic Fuel Corporation filed its own voluntary chapter 11 case in Delaware. A copy of the petition is here. The case is docketed as case no. 15-10599, and has been assigned to The Honorable Mary F. Walrath.

The Declaration of Dr. Steven C. Vickwas filed in support of the petition and other first-day motions. Dr. Vick is the CEO and President of USA Synthetic Fuel Corporation. According to the Vick Declaration, The Debtors are an environmentally focused, development state energy company pursuing low-cost, clean energy solutions through the deployment of proven Ultra Clean Btu Converter technology. The technology converts lower-value solid hydrocarbons, such as coal, into higher-value energy products.

Dr. Vick states in the declaration that in 2012 the debtors obtained approximately $36.6 million in aggregate principal amount of secured debt financing, and used those funds to procure land and other materials for ultimate construction of an Ultra Clean Btu Converter in Lima, Ohio.

Efforts to lauch a $700 million bond and equity offering were cancelled when the Debtors failed to make certain payments under their prepetition secured indebtedness as a result of liquidity issues, mounting liabilities to employees, tax authorities, professional advisors, an appraisal of a Coal Asset, and an SEC investigation into certain accounting practices and internal controls.

In August 2014, the Debtors received a term sheet from their prepetition secured lenders which suggested a transaction in which the lenders would purchase substantially all the assets of the debtors in a bankruptcy 363 sale. By March 2015, the debtors had found no viable alternative to the proposed transaction. As a result, the debtors have entered bankruptcy with the purpose of auctioning their assets off with the prepetition lenders acting as the stalking horse.

Quicksilver Resources Receives Approval of All "First Day Motions"

Quicksilver Resources Receives Approval of All “First Day Motions”

Court Authorizes Continued Payment of Employee Wages and Benefits; Operations to Continue in the Normal Course of Business March 20, 2015: 08:00 AM ET

FORT WORTH, Texas, March 20, 2015 (GLOBE NEWSWIRE) — Quicksilver Resources Inc. (OTC Pink:KWKAQ) announced today the approval by the United States Bankruptcy Court for the District of Delaware (the “Court”) of all of the Company’s “first day” motions.

“The Court’s approval is a positive step forward in our efforts to address current financial challenges and to position Quicksilver as a strong competitor in the oil and gas industry,” said Glenn Darden, Quicksilver’s Chief Executive Officer. “Today’s results will give our employees, suppliers, royalty and working interest owners confidence that our operations will continue without interruption.”

The Company also announced that it received Court approval to, among other things, pay employee wages, health benefits, and certain other employee obligations. Additionally, the Company is authorized to honor royalty obligations, working interest obligations, and other obligations related to oil and gas leases.

Quicksilver and its U.S. subsidiaries filed voluntary petitions under chapter 11 of title 11 of the United States Code on March 17, 2015. The chapter 11 cases are being jointly administered under the case number 15-10585. Quicksilver’s Canadian subsidiaries were not included in the chapter 11 filing and will not be subject to the requirements of the U.S. Bankruptcy Code. Quicksilver Resources Canada Inc. (“QRCI”) has reached an agreement with its first lien secured lenders regarding a forbearance for a period up to and including June 16, 2015 of any default under QRCI’s first lien credit agreement arising due to the chapter 11 filing.

Quicksilver has established a toll-free Restructuring Information Hotline for employees, suppliers, landowners, royalty owners, investors, and other interested parties, at (877) 940-2410. For access to Court documents and other general information about the chapter 11 cases, please visit www.gardencitygroup.com/cases/kwk.

The Company’s legal advisors are Akin Gump Strauss Hauer & Feld LLP in the U.S. and Bennett Jones in Canada. Houlihan Lokey Capital, Inc. is serving as financial advisor.

About Quicksilver Resources

Fort Worth, Texas-based Quicksilver Resources is a publicly traded independent oil and gas company engaged in the exploration, development and acquisition of oil and gas, primarily from unconventional reservoirs including shales and coal beds in North America. Quicksilver’s Canadian subsidiary, Quicksilver Resources Canada Inc., is headquartered in Calgary, Alberta. Quicksilver’s common stock is traded on the OTC Pink open marketplace under the symbol “KWKAQ.” For more information about Quicksilver Resources, visit www.qrinc.com.

Subscribe to Quicksilver News

The company uses its investor relations website to post news releases, investor presentations, SEC filings and other material non-public information to comply with disclosure obligations under Regulation FD, and utilizes Really Simple Syndication (“RSS”) as a routine channel to supplement distribution of this information. To subscribe to Quicksilver’s RSS feeds, visit the company’s website at http://investors.qrinc.com/rss.

In addition, users may elect to receive email alerts related to company news, SEC filings, webcasts, events and stock information. To register for email alerts, visit the company’s website at http://investors.qrinc.com/alerts.

Forward-Looking Statements

Certain statements contained in this press release and other materials we file with the Securities and Exchange Commission (“SEC”), or in other written or oral statements made or to be made by us, other than statements of historical fact, are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements give our current expectations or forecasts of future events. Words such as “may,” “assume,” “forecast,” “position,” “predict,” “strategy,” “expect,” “intend,” “plan,” “estimate,” “anticipate,” “believe,” “project,” “budget,” “potential,” or “continue,” and similar expressions are used to identify forward-looking statements. They can be affected by assumptions used or by known or unknown risks or uncertainties. Consequently, no forward-looking statements can be guaranteed. Actual results may vary materially. You are cautioned not to place undue reliance on any forward-looking statements. You should also understand that it is not possible to predict or identify all such factors and should not consider the following list to be a complete statement of all potential risks and uncertainties. Specific risks and uncertainties include, but are not limited to, whether the company is able to successfully restructure its indebtedness, improve its short- and long-term liquidity position, complete any strategic transactions, and those set forth under Item 1A, “Risk Factors,” of our most recent Annual Report on Form 10-K/A, and subsequent filings with the SEC.

CONTACT: Restructuring Information Hotline:
1-877-940-2410

Media Contact:
David Erdman
817-665-4023
IR@qrinc.com

 

Voters agree: tax big companies more, not less

Tags: Essential Report, multinational companies, tax avoidance, taxation

Categories: Companies, crikey15, Federal, Subscriptions

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15 Responses

Comments page: 1 |

  1. Since the whole raison dêtre for the current LNP (as with all right-wing cabals) is to keep the money in the kleptocrat bosses hands, how surprisment. No doubt One Hand, Lambert and the usual flying monkeys will be through later to disabuse us of these quaint notions of improper hierarchy.

    by rhwombat on Mar 10, 2015 at 2:01 pm

  2. I seem to remember at the time Kevin Rudd proposed the mining tax the outcry from the Murdoch press, business groups and the liberal party was viscous and constant. Then the large mining companies launched an advertising blitz against it predicting all sorts of dire consequences. Then the polls turned against it and we ended up with the garbage that we had. The people who should be held accountable for that fiasco may in some part be the Labor Party but mining companies, News and the Liberals are the main destroyers of that attempt at some decent legislation.

    by Jonathan Eales on Mar 10, 2015 at 2:51 pm

  3. I dont want then to be taxed more I just want them to honour their social contract to be good citizens and not use artifical means to avoid tax.

    These companies want all the services govt provide so they should pay their whack

    by The Pav on Mar 10, 2015 at 3:14 pm

  4. Oh no, not the banks, certain mining companies that still manage to attract diesel fuel rebates, and certain internet search companies.

    The textbook reply by the minimal taxpaying rent seekers will be: it will create unemployment and sovereign risk to companies wanting to set up in Australia.

    The reply from Australia should be: you dont like it, go, there will be others wanting to take your place; after all when there is a profit to be made the void will be filled. These rent seeker should be called out to make good their bluff.

    by Bill Hilliger on Mar 10, 2015 at 4:05 pm

  5. I think it is obvious to all that large companies that use legions of people to find ways through the tax system to legally avoid tax should be gone after.

    I reckon a multinational revenue tax has merit. Slug them a 10% withholding tax on revenue and force them to justify why they shouldnt pay it.

    by David Hand on Mar 10, 2015 at 4:19 pm

  6. The common thread through this, of course, is that people want others to pay more tax.

    Its a great article, but that statement cannot be drawn from the polling that you have provided BK.

    Taxing companies more is a kind of victimless crime for voters, who don’t accept the idea that higher taxes on companies might affect employment.

    That is also a false analogy BK

    It presumes that each individual employee is there as a factor of tax rates, but that is not the case in any honestly run, or even mildly competent company.

    A company employs people because they will add to the overall profit. It is only the nett profit that is taxed, so unless companies are out there employing people to reduce their profits, (an unheard of form of corporate welfare) then the argument that tax rates affect employment is a category error, a misnomer.

    While there is all manner of employment that doesnt directly add to profits (lawyers, tax accountants, Human Resources, payroll, cleaning) they are a cost of doing business. Profit is only what can be gleaned after these expenses are taken out. Tax is only levied on revenue less these expenses. Companies are not intentionally employing people to reduce their profits, that is just axiomatic.

    Tax rates, by definition, do not affect employment in profitable companies, and if a company is not profitable, it is soon no longer a company.

    David Hands suggestion is eminently worth considering, and a tax rate levied at the greater of 10% of revenues, or 30% of legitimate profit (revenue less legitimate expenses) would surely be feasible, even if they did cry like stuck pigs.

    Clearly, as Michael West and others have described, inter-company loans at rates well in excess of the market serve no great purpose apart from shifting profit, as do licence agreements for things such as software, and all manner of financial trickery.

    God forbid, we even have agreement in the forums from usual protagonists (me included)

    Pav states it perfectly, pay your fair share, thats all.

    by Dogs breakfast on Mar 10, 2015 at 5:40 pm

  7. Have a look at the ratio of corporate to individual tax payments in the booming 60s – 70%/20% with 10% from the quaint notion (from the time of Hammurabi) of excise, most of which was paid to the farmers as bounty/intervention payments.

    by AR on Mar 11, 2015 at 7:30 am

  8. Not quite right Dog.
    A company makes an investment decision based on the return it eventually expects to make. So if company tax is lower, returns are easier to achieve and investment is more likely to occur and jobs are more likely to be created.

    by David Hand on Mar 11, 2015 at 12:41 pm

  9. My mortgage was fixed for 3 years with AMP and the term will soon end. I have instructed my mortgage broker to find another lending institution which is a good corporate citizen and doesnt shift its profits out of Australia via Luxembourg. This divestment is happening to all major financial institutions which behave badly. I took all my super out of fossil fuel companies too. There is no point in signing petitions and expressing outrage on Twitter. These companies only understand one thing: money. Time to hit them in the hip pocket nerve where it hurts.

    by JennyWren on Mar 11, 2015 at 12:46 pm

  10. BTW same goes for countries. I will never buy Japanese goods or travel as a tourist to Japan until they stop killing dolphins in Taiji or whaling anywhere. I think everyone should think about what their money is supporting, either directly or indirectly.

    by JennyWren on Mar 11, 2015 at 12:48 pm

  11. This appears to have affirmed voters in their view that large companies, rather than needing to pay less tax, should pay more tax — or perhaps even just the tax they’re supposed to pay. This week’s Essential Report poll looks at views on taxation (full results here), and the unanimity among voters on certain sources of revenue is noteworthy. Labor and Coalition voters are indistinguishable in saying large international companies don’t enough tax — 74% Labor and 73% Coalition. Just 8% and 10%, respectively, say they pay the right amount; 2% each say they pay too much.

    There has been a massive (and deliberately engineered) shift in profit share from labour to capital over the last few decades. Its a natural response to that.

    A handful of people still believe in trickle-down economics and think making the wealthy ever-more wealthy is a good idea (or are amongst those benefit from it), but most innately understand its bad juju.

    by drsmithy on Mar 11, 2015 at 3:30 pm

  12. He doctor,
    I hope you dont subscribe to the left wing creationist cult.

    This is the cult that believes the world was created by a left wing god in 1981. Absolutely nothing existed before then. There was no history about how society got to the state it was in at that time. No economic policies had delivered the conditions we had in 1981.

    The world was a Garden of Eden of equality. Companies made stuff all profit, were heavily regulated by governments and the people lived in idyllic bliss. This included high unemployment, high inflation, massive government debt, restraints on international trade, centralised bargaining, massive government ownership of a big slice of the economy and you couldnt get the bank to give you a loan.

    Then the devil in the form of Reagan or Thatcher got humanity to eat the neoliberal and neoconservative apple and the world has gone to hell in a hand basket ever since.

    Actually I think you probably do.

    by David Hand on Mar 11, 2015 at 4:30 pm

  13. I hope you don’t subscribe to the left wing creationist cult.

    Indeed, David. 50s and 60s America was a catastrophic time in history. Thats why nobody is nostalgic about it. We should in no way try to pursue such policies.

    Instead we should focus on deliberately engineered unemployment, suppressing wages, eliminating job security, removing publicly funded services, minimising class mobility, maximising wealth gaps and juicing up GDP with huge levels of immigration. A surefire path to widespread prosperity, social stability and wealth.

    by drsmithy on Mar 11, 2015 at 4:41 pm

  14. Youve been watching too many evil corporation and evil American military industrial establishment movies, doctor.

    by David Hand on Mar 11, 2015 at 5:18 pm

  15. They are the pillars of the last few decades of mainstream economic policy in the western world.

    by drsmithy on Mar 11, 2015 at 6:41 pm

JCT Ltd plans to sell non-core assets to repay convertible bonds holders …

In the first six months of this fiscal year, JCT posted a cash profit of Rs 16.37 crore as against a loss of Rs 13.43 crore a year earlier, while turnover rose to Rs 480 crore from Rs 452 crore. It expects revenue to total more than Rs 900 crore in the fiscal year ending on March 31, compared with a little over Rs 800 crore in the previous year. Since we are now out of the woods, we are making serious endeavour to reduce our overall debt, Thapar said.

Its non-core assets include 70 acres of land at Ganganagar in Rajasthan and two plots in Delhi. The combined market value of these land would be about Rs 80-90 crore, he said.

The high court, while dismissing the petition, said it wouldnt be fit to admit the winding-up petition when workers and employees are making strenuous efforts to bring the company out of debt. In fact, it has started generating net profits, secured lenders have restructured their debt and the company has been able to turn around, the court said.

The assets of the company are more than its liabilities and it is expected that JCT will make all-out efforts to generate funds, either out of cash profits or by sale of non-core assets to pay off the balance bondholders or get the debt restructured to maintain its creditworthiness, the court observed. It asked the company to pay 25 per cent of the amount due to current bondholders within six months and the rest thereafter.

The company, in addition to the debt of Rs 115 crore to the bond holders, had borrowed Rs 330 crore from nationalised banks. The banks have restructured the loans under the corporate debt restructuring scheme in September 2012 and the company has not defaulted on that, Thapar said.

JCT makes textile from cotton, cottonblended and yarn dyed fabric and supply to defence, work wear and high-fashion segments. It now plans to expand to home furnishing.

5 Credit Cards to Help You Build Credit

Do you need to build your credit? Perhaps you are a young adult who has never had a credit card, or maybe you are a new arrival to the US without a credit history here. Others may need to build credit after having gone decades without applying for any type of loan.

Thankfully, the right credit card can help you quickly build your credit. To choose the best one for this purpose, look for cards that are targeted at students, newcomers, or those with average credit. (You can check your credit scores for free on Credit.com.) If you are unable to qualify for one of these cards, then you will need to consider applying for a secured card. Finally, new credit card users should always be looking for cards that are simple to use, with low costs and few fees.

Discover it Chrome for Students

This card offers low rates and a simple fee structure, making it ideal for students and young adults. For example, there is no annual fee for this card and no penalty interest rate. Plus, cardholders automatically receive their first late payment fee waived. In addition, this card offers 2% cash back on up to $1,000 spent each quarter at gas stations and restaurants, and 1% cash back on all other purchases. Finally, the Discover card boasts 100% US-based customer service and it is well known for having a high rate of customer satisfaction.

BankAmericard Secured Card

This card requires a minimum refundable security deposit of $300, which helps to determine your credit limit. But in all other ways, it acts just like a standard credit card. Cardholders must make a payment each month, and will be charged interest if they carry a balance. To help remember, customers can set up account alerts via email or text. After one year of use, your account can be reviewed and you can qualify for a standard unsecured card. There is a $39 annual fee for this card.

Capital One Platinum

This card is designed for those with merely average credit, and it is a very simple product. It has no annual fee or foreign transaction fees, but it offers no rewards either. This card includes perks such as extended warranty coverage, price protection and auto rental insurance.

US Bank Secured Visa Card

New cardholders fund their accounts online or can mail in a cashier’s check or money order. Once the account is opened, cardholders can use it just like any other credit card as they build their credit. Features include auto rental insurance and automatic bill pay. Customers can also set up automatic payments to their account using US Banks FlexControl feature. There is a $29 annual fee for this card.

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Citi ThankYou Preferred Card for College Students

This card currently offers 2,500 bonus ThankYou points after new applicants spend $500 on their card within the first three months. This card also offers double points for spending on dining and entertainment and one point per dollar spent elsewhere. ThankYou points can be redeemed for about one cent each worth of gift cards, travel reservations, merchandise and other options. Benefits include auto rental coverage, extended warranty policies, trip cancellation and interruption protection and damage and theft purchase protection. There is no annual fee for this card.

At publishing time, Discover it Chrome for Students, Capital One Platinum and Citi ThankYou Preferred Card for College Students are offered through Credit.com product pages, and Credit.com may be compensated if our users apply and ultimately sign up for this card. However, this relationship does not result in any preferential editorial treatment.

Note: It’s important to remember that interest rates, fees and terms for credit cards, loans and other financial products frequently change. As a result, rates, fees and terms for credit cards, loans and other financial products cited in these articles may have changed since the date of publication. Please be sure to verify current rates, fees and terms with credit card issuers, banks or other financial institutions directly.

More on Credit Cards:

  • The Credit.com Credit Card Learning Center
  • How Secured Cards Can Help Build Credit
  • How to Get a Credit Card With Bad Credit

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Note: Its important to remember that interest rates, fees and terms for credit cards, loans and other financial products frequently change. As a result, rates, fees and terms for credit cards, loans and other financial products cited in these articles may have changed since the date of publication. Please be sure to verify current rates, fees and terms with credit card issuers, banks or other financial institutions directly.