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AMR avoids investigation into $2.26 billion debt deals

NEW YORK - Hedge fund Marathon Asset Management has withdrawn a request for an independent investigator to examine the books of American Airlines, a unit of bankrupt AMR Corp , lawyers for the companies said at a hearing on Thursday.

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Found more than 1 month ago on channel Reuters

Hurricane Sandy Estimated to Cost $60 Billion

(WASHINGTON) — Superstorm Sandy will end up causing about $20 billion in property damages and $10 billion to $30 billion more in lost business, according to IHS Global Insight, a forecasting firm. In the long run, the devastation the storm inflicted on New York City and other parts of the Northeast will barely nick the U.S. economy. That’s the view of economists who say a slightly slower economy in coming weeks will likely be matched by reconstruction and repairs that will contribute to growth over time. The short-term blow to the economy, though, could subtract about 0.6 percentage point from U.S. economic growth in the October-December quarter, IHS says. Retailers, airlines and home construction firms will likely lose some business. The storm cut power to more than 8 million homes, shut down 70 percent of East Coast oil refineries and inflicted worse-than-expected damage in the New York metro area. That area produces about 10 percent of U.S. economic output. (MORE: Photos: After the ...

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Found more than 1 month ago on channel TIME Business

Should the Federal Government Be Subsidizing Flood Insurance?

As Hurricane Sandy continues to batter the Eastern seaboard of the United States, one thing is for certain: Insurance companies will be ponying up for billions of dollars in property damage caused by high winds.  Last summer’s Hurricane Irene cost insurance providers more than $4 billion in damage claims, with flood insurance payments totaling nearly $1.3 billion. But what many Americans may not know is that this $1.3 billion was a bill footed by the federal government, which underwrites the vast majority of flood insurance across the nation. Historically, insurance companies have been wary of offering flood insurance to homeowners because the risks associated with flood insurance are difficult to forecast, so any private insurance that had been offered was prohibitively expensive for average homeowners. But in the 1960s, frequent flooding of the Mississippi River was driving up the costs of federal disaster relief programs. In an effort to reduce these costs, Congress set up the National ...

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Found more than 1 month ago on channel TIME Business

Exclusive: Reynolds and Reynolds explores $5 billion LBO - sources

NEW YORK - Reynolds and Reynolds, which provides business management software for auto dealers in North America and Europe, is exploring a sale to private equity that could fetch around $5 billion, several sources familiar with the matter said.

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Found more than 1 month ago on channel Reuters

Apax, KKR, Madison Dearborn bid for Heartland Dental: sources

NEW YORK - Private equity firms KKR & Co , Apax Partners and Madison Dearborn Partners are bidding for Heartland Dental Care Inc, one of the largest U.S. dental practice management companies and which could be worth around $1.3 billion, according to people familiar with the matter.

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Found more than 1 month ago on channel Reuters