Facebook asked U.S. Magistrate Judge Leslie Foschio in Buffalo, New York to punish the plaintiff, Paul Ceglia, and his lawyers for their failure to turn over email accounts and passwords, as the judge had directed in an August 18 order.The filings mark the latest twist in a year-old case over the authenticity of a 2003 contract under which Ceglia said he hired Zuckerberg, then a Harvard University freshman, on multiple projects, one of which eventually became Facebook.The company calls that contract a forgery, and said an “authentic” contract found on Ceglia’s computer does not concern Facebook.Facebook made its request on Friday, one week after Jeffrey Lake, one of Ceglia’s lawyers, said in a court filing that his client told him not to follow the judge’s order.”I informed Mr. Ceglia that the court had ordered him to produce, among other things, accounts and passwords for all email accounts he had used since 2003,” Lake wrote. “Mr. Ceglia instructed me not to comply with this provision and to bring the issue before (U.S.) District Judge (Richard) Arcara.”In its October 14 filing, Facebook said Ceglia’s lawyers had a duty to resist their client’s alleged effort to break the law, and might have violated state ethics rules by revealing what he said in an effort to protect themselves.”If they fail to persuade their client to change direction, their proper course is to withdraw,” Facebook lawyers wrote.Lake’s colleague Nathan Shaman, in an accompanying filing, also said Ceglia refused to comply with Foschio’s order.Calls to Lake, Shaman and Paul Argentieri, another lawyer for Ceglia, were not immediately returned.Facebook is based in Palo Alto, California, and may be worth $68.2 billion, according to SharesPost Inc, which tracks valuations of private companies.Many analysts expect Facebook to conduct an initial public offering as soon as next year. Zuckerberg is worth $17.5 billion, Forbes magazine said last month.Ceglia is a wood pellet salesman from Wellsville, New York, and now reported to be living in Ireland.The case is Ceglia v. Zuckerberg et al, U.S. District Court, Western District of New York, No. 10-00569.
Facebook asked U.S. Magistrate Judge Leslie Foschio in Buffalo, New York to punish the plaintiff, Paul Ceglia, and his lawyers for their failure to turn over email accounts and passwords, as the judge had directed in an August 18 order.The filings mark the latest twist in a year-old case over the authenticity of a 2003 contract under which Ceglia said he hired Zuckerberg, then a Harvard University freshman, on multiple projects, one of which eventually became Facebook.The company calls that contract a forgery, and said an “authentic” contract found on Ceglia’s computer does not concern Facebook.Facebook made its request on Friday, one week after Jeffrey Lake, one of Ceglia’s lawyers, said in a court filing that his client told him not to follow the judge’s order.”I informed Mr. Ceglia that the court had ordered him to produce, among other things, accounts and passwords for all email accounts he had used since 2003,” Lake wrote. “Mr. Ceglia instructed me not to comply with this provision and to bring the issue before (U.S.) District Judge (Richard) Arcara.”In its October 14 filing, Facebook said Ceglia’s lawyers had a duty to resist their client’s alleged effort to break the law, and might have violated state ethics rules by revealing what he said in an effort to protect themselves.”If they fail to persuade their client to change direction, their proper course is to withdraw,” Facebook lawyers wrote.Lake’s colleague Nathan Shaman, in an accompanying filing, also said Ceglia refused to comply with Foschio’s order.Calls to Lake, Shaman and Paul Argentieri, another lawyer for Ceglia, were not immediately returned.Facebook is based in Palo Alto, California, and may be worth $68.2 billion, according to SharesPost Inc, which tracks valuations of private companies.Many analysts expect Facebook to conduct an initial public offering as soon as next year. Zuckerberg is worth $17.5 billion, Forbes magazine said last month.Ceglia is a wood pellet salesman from Wellsville, New York, and now reported to be living in Ireland.The case is Ceglia v. Zuckerberg et al, U.S. District Court, Western District of New York, No. 10-00569.
On Monday, Kinetic Concepts (KCI.N) reduced its seven-year
term loan B to $1.9-1.95 billion from an original $2.2 billion
and introduced a $250-300 million, five-year term loan C. The
term loan C, sources said, resulted from reverse inquiries to
lead agent Bank of America Merrill Lynch from CLOs that could
not commit to the seven-year term loan B and instead preferred
shorter-dated paper.Bank of America Merrill Lynch declined comment.CLOs, which make up around 40 to 50 percent of the demand
for leveraged loans, are grappling with maturity problems,
chief among which is the upcoming end of many CLOs’
reinvestment periods. For a cash flow CLO, the end of the
reinvestment period means limited trading activity in loans.
Also, sources indicated that these limitations can surface well
before the reinvestment period ends. For instance, CLO
indentures can prohibit CLOs from buying a loan with a
seven-year maturity if they are two years away from the end of
their reinvestment period.According to data from Wells Fargo, by the end of 2012,
around 50 percent of outstanding CLOs are expected to end their
reinvestment period and enter the amortization period, where
senior CLO noteholders — AAA investors — are repaid.CLOs must also meet another parameter known as the weighted
average life (WAL) test. Typically, this test constrains the
tenor of the loan assets in a CLO portfolio to ensure that
there will be sufficient principal proceeds available to pay
off the CLO notes before the legal final maturity date.To be sure, Kinetic Concepts’ loan, which backs the
company’s $6.3 billion buyout by an Apax Partners-led group, is
believed to have been struggling slightly before the changes
were worked in and therefore needed a diverse array of
investors.”Given the size of the deal, they need everybody to get it
done in this kind of credit environment,” said one investor who
committed to the deal.High leverage and a relatively high degree of earnings
volatility were some of the concerns that investors cited on
Kinetic Concepts’ loan. One investor said that by his
estimation, total leverage was as high as 6.4 times.Still, investors said the yield on the term loan B is
commensurate to the company’s risk-profile. The term loan B,
with its seven-year tenor, is attractive to non-structured
vehicles that don’t have timing limitations to deal with,
sources said.”They backed up the pricing and it’s coming at a meaningful
discount,” said a non-CLO investor.Kinetic Concepts, which makes medical devices used in wound
care, is offering its term loan B at 575 basis points over
Libor with a 1.25 percent Libor floor and a discount of 95.5-96
cents on the dollar. The term loan C is guided 75 basis points
inside the term loan B.Some sources noted that investors are also using the
recently priced loan for Emdeon Inc (EM.N) as a comparison
point for Kinetic Concepts’ loan.”The Emdeon business is a lot more stable, has a good
growth story and it makes sense that KCI is coming at wider
pricing than Emdeon,” said one buyside investor.
* Total required investments reach 18 billion reais
(Adds estimated return, Infraero stake)BRASILIA, Oct 13 (Reuters) - Operators interested in
running Brazil’s largest airport will be required to make a
minimum bid of $1.3 billion, Brazil’s aviation authority said
on Thursday.Brazil, which has seen double-digit annual growth in air
traffic, is planning to expand and modernize its main airports
ahead of the 2014 World Cup and 2016 Olympics in Rio de
Janeiro.Bidding for the rights to build and operate three airport
terminals is tentatively scheduled for Dec. 22, although
authorities say the date depends on rulings by government
watchdogs.Investors have been closely watching the bidding amid
broader uncertainty over Brazil’s investment climate. A heavy
government hand in several industries has raised concern with
some private investors.Earlier this year the government said that Infraero, the
state-owned company that currently runs most airports, will
maintain a veto right on strategic decisions in the
joint-ventures it will form with winning bidders. Infraero will
hold a 49 percent stake in these joint ventures.The winning bidder for Guarulhos, Sao Paulo’s main
international airport, will be charged 10 percent of gross
revenue over a 20-year contract. In addition to airport fees,
the operator will earn 804 million reais in revenues by 2032,
compared with an estimated 373 million reais in 2012, Secretary
of Civil Aviation Wagner Bittencourt said.The estimated return on investment for each of the projects
is 6.46 percent, according to Bittencourt’s office.Required investments at Guarulhos total 5.2 billion reais.Brazil will also auction off concessions at Viracopos
airport, in Sao Paulo state, as well as at the airport in the
capital, Brasilia.Bidders for Viracopos, which requires investments of 9.9
billion reais, will have to offer at least 521 million reais
and will pay 5 percent of gross revenues over a 30-year
contract.
