Wall Street Early Trading: Kodak EMBARRASSING Bids, GM Cries FOUL
In a trial set to begin today, GM (NYSE:GM) has alleged in a $3 billion lawsuit between creditors from the bankrupt portion of the company, known as Motors Liquidation, and hedge funds including Fortress Investment Group (NYSE:FIG) a “threaten to disturb” transaction over inter-company loans had helped save the company. The deal avoided a bankruptcy for GM Canada and a subsequent liquidation for the group.
Standard Chartered (SCBFF) has denied the State of New York accusations that it concealed more than 60,000 illegal Iranian transactions valued at $250 billion from a 10-year period. The bank, which was been called “rogue institution,” may be deprived of its license for operation in New York; it has also said the transaction value violating U.S. regulation came in under $14 million. The U.K-listed company saw its shares tank 24 percent in London.
Chesapeake Energy (NYSE:CHK) should finish its $7 billion in asset sales in the third quarter after divesting $4.7 billion in the first half as it attempts to fix a $10 billion funding gap and regain its reputation after negative corporate-governance allegations. In the second quarter, Chesapeake’s net profit almost doubled to $929 million, assisted by the Chesapeake Midstream Partners divestiture. Revenue rose 2.1 percent to $3.39 billion, beating estimates while its $0.06 adjusted earnings missed forecasts.
DreamWorks Animation (NASDAQ:DWA) and its Chinese JV partners will build a YUAN 20 billion ($3.14 billion) theme park in Shanghai, which has a 2016 open date, and a $350 million movie studio. DreamWorks is looking to build on the success found from its Kung Fu Panda series and the growing Chinese film market. For China, it has hopes the deal will promote additional consumer activity.
Eastman Kodak’s (EKDKQ.PK) patent portfolio opening bids were between $150-250 million, lower than the bankrupt company’s $2.6 billion possible value, reported the Wall Street Journal. The bids came from two groups: one included Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT), and the second one comprised Google (NASDAQ:GOOG) and Samsung. The auction is set for Wednesday and is vital in helping Kodak exit bankruptcy.