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Avida Land eyes P3.6 B sales By Iris Gonzales (The Philippine Star) Updated March 30, 2017 – 12:00am http://www.philstar.com/business/2017/03/30/1685798/avida-land-eyes-p3.6-b-sales MANILA, Philippines –  Avida Land, the middle-income housing subsidiary of property giant Ayala Land Inc., is targeting P3.6 billion in sales from its projects in South Luzon. The company launched the second phase of the 21-hectare Avida Settings Lipa, its seventh project in Batangas. The project offers house and lots in three different models and lots only. Land value at launch was at P14,600 per square meters.  This has now risen to P15,800 per sqm in just three months. “In Batangas, majority of house and lot buyers are growing families who want to upgrade their lifestyle. They usually need bigger living spaces and search for a secure and quiet community for their children,” said Avida AVP for Project and Strategic Management Group Herbert Herrero. Phase one of the project has  been 70 percent on its first month, Herrero said. House and lot packages range from P4.8 million to P8 million while lots are priced at P1.6 million to P4.6 million. The community is located along JP Laurel Highway and is in close proximity to schools, malls and transport terminal. In the subdivision itself, Avida Land will put up a 1.4 hectare central amenity area with preserve trees, children’s and adult swimming pools, basketball court, playground, picnic area and multi-purpose hall. The company’s other projects in Batangas have almost 2,000 households. These are located in San Isidro, Lipa, Sto. Tomas and San Pascual. With Avida Settings Lipa, the property firm aims to further strengthen its South Luzon residential portfolio, which at present contributes up to 70 percent of Avida’s total house and lot sales. Cemex to build 4.5MW waste-to-heat facility By: Doris Dumlao-Abadilla Philippine Daily Inquirer 10:33 AM March 29, 2017 http://business.inquirer.net/226992/cemex-build-4-5mw-waste-heat-facility A unit of cement-maker Cemex Holdings Philippines Inc. signed an agreement with Sinoma Energy Conservation Ltd. of China to build and operate a 4.5-megawatt (MW) waste-heat-to-energy (WHTE) facility in Naga, Cebu. In a disclosure to the Philippine Stock Exchange on Wednesday, Cemex announced that the WHTE deal had been signed by its subsidiary APO Cement Corp. The power facility will have the capacity to capture excess heat from the cement plant’s kiln and convert it into usable energy. This technology is expected to generate 25,000 MW hours annually. The WHTE facility is expected to mitigate the negative effects of power service interruptions, help reduce dependence on high-cost power sources, and reduce the cement plant’s carbon footprint, the company said. “Promoting energy efficiency is one of Cemex’s objectives in advancing resource generation best practices. We are delighted to see the good results of our partnership with Sinoma since the successful construction of the first WHTE project in one of our plants,” said Cemex Philippines president Pedro Palomino. “We are pleased to be working with Cemex once again and we are positive that the upcoming project will contribute significantly to Cemex’s operations,” said Zhang Qi, Sinoma-EC chair. Apo Cement operates as a building material supplier and cement producer. It has a plant located in Cebu, founded in 1921, which produces Pozzolan and Portland cement under the APO Cement brand. Cemex said it would continuously seek to improve its performance as an “efficient, agile, and innovative” company by identifying, sharing, and implementing best practices across its global network of plants and facilities. The company said its industry-best processes would allow it to satisfy the needs of its customers while using the optimal amount of resources. Cemex is one of the leading cement producers in the Philippines based on installed annual capacity. It produces and markets cement and cement products, such as ready-mix concrete and clinker, in the Philippines through direct sales using its extensive marine and land distribution network. The company’s cement manufacturing subsidiaries have been operating in the Philippines for over 17 years with well-established brands, such as “APO,” “Island,” and “Rizal,” each of which has a multi-decade history in the country. Cemex is an indirect subsidiary of Cemex S.A.B. de C.V., one of the largest cement companies in the world based on annual installed cement production capacity. The shares of CEMEX, S.A.B. de C.V. are listed on the Mexican Stock Exchange and the New York Stock Exchange. Ayala to consolidate mfg, vehicle distribution under AC Industrials By Iris Gonzales (The Philippine Star) Updated March 30, 2017 – 12:00am http://www.philstar.com/business/2017/03/30/1685797/ayala-consolidate-mfg-vehicle-distribution-under-ac-industrials MANILA, Philippines –  A subsidiary of Ayala Corp. will transfer its 50.6 percent ownership in Integrated Micro-Electronics Inc. to AC Industrial Technology Holdings Inc., a move aimed at consolidating the group’s interests in manufacturing and automotive dealership under one company. The transaction, which will be done through a special block sale of IMI shares, allows AC to execute on its vision to assemble a portfolio of businesses that own, develop and commercialize automotive and other industrial technologies across various platforms to capture opportunities in the domestic and global markets. AC industrials is one of the conglomerate’s emerging businesses rebranded under the AC portfolio, along with AC Energy, AC Infra, AC Education and AC Automotive. The block sale needs the approval of the Philippine Stock Exchange and has been granted exemptive relief from the application of the mandatory tender offer rules by the Securities and Exchange Commission. IMI is the 21st largest electronics manufacturing service provider and the sixth largest automotive electronic manufacturing services provider in the world based on revenues, with technological and management expertise in automotive, telecom and industrial electronics, among others. AC Industrials, meanwhile, holds Ayala’s interests in automotive distributorship which include a 13-percent stake in Honda Cars Philippines, a 15-percent stake in Isuzu Philippines Corp., a 100-percent stake in Honda Cars Makati Inc., a 100-percent stake each in Isuzu Automotive Dealers, Automobile Central Enterprise and Adventure Cycle Philippines Inc. HCMI and IADI respectively own and operate 11 full-service Honda car dealerships and eight full-service Isuzu dealerships nationwide. Aside from this, ACEI is the official Philippine importer and distributor of Volkswagen vehicles. AC Industrials also manufactures KTM motorcycles and, through ACPI, is the official distributor of KTM motorcycles in the Philippines. “Through its wider reach and industry coverage, AC Industrials seeks to play a bigger role in manufacturing and contribute to the country’s rise as a Southeast Asian (ASEAN) industrial hub, directly providing IMI a foothold in the industry,” Ayala said. Ayala Corp. is the country’s oldest conglomerate, with businesses in banking, telecommunications, property and retail, among others. Integrated dev’t plan for Masbate mine site OKd By: Ronnel W. Domingo Philippine Daily Inquirer 12:12 AM March 30, 2017 http://business.inquirer.net/227038/integrated-devt-plan-masbate-mine-site-okd Filminera Resources Corp. has signed a memorandum of agreement with Philippine Gold Processing & Refining Corp., the Department of Environment and Natural Resources and the local government of Aroroy in Masbate on an integrated area development (IAD) plan for the gold mine area. IAD is one of Environment Secretary Lopez’s buzzwords as she clamps down on mines that she says should not be operating. Lopez has deferred action on Filminera’s Masbate mine while she ordered the closure of 22 mines, and suspension of four others. The operators of two other mines were given notices to show cause on why they should not be shuttered. According to Filminera, the IAD plan calls for the formulation and implementation of a six-year Sustainable Integrated Area Development (SIAD) Action Plan by the government, civil society and the private sector. Lopez defined SIAD as “an approach, strategy and guiding philosophy that weaves environmental considerations with social justice and human development” and was aimed at applying area-based interventions and concepts on natural resources development programs. PGPRC holds the mineral processing permit for and owns and operates the processing plant in the Masbate gold project. Filminera holds the environmental compliance certificate, the mining tenements, surface rights and the mineral production sharing agreement (MPSA). Filminera said the IAD plan was aligned with relevant DENR programs like the National Greening Program, Biodiversity Program, Biochar Program for Agricultural and other Wastes, Coastal Research and Management, Clean Water and Air Programs and Solid Waste Management Program. AC Energy eyes opportunities in SE Asia By Victor V. Saulon Posted on March 30, 2017 http://www.bworldonline.com/content.php?section=Corporate&title=AC-Energy-eyes-opportunities-in-SE-Asia&id=142971 AC ENERGY Holdings, Inc. is transforming itself into a regional player in the energy sector, setting its sights on expanding in Indonesia and entering Vietnam. “We are beginning to look at other Southeast Asian markets. Vietnam is something we are looking at,” said AC Energy President John Eric T. Francia in a briefing on Wednesday. The move comes after AC Energy signed in January 2017 investment agreements with UPC Renewables Indonesia for the development, construction and operation of a 75-megawatt (MW) wind farm project in Sidrap, South Sulawesi, Indonesia. Mr. Francia said the company is planning to further expand in Indonesia, adding there are “active discussion” with its partners for potential new projects in Indonesia. In December last year, AC Energy was part of a consortium that signed an agreement with Chevron Global Energy, Inc. and the Union Oil Company of California for the acquisition of Chevron’s geothermal operations in Indonesia and the Philippines. “The priority is to strengthen our presence,” he said. “This year, we’re going to add more operating assets in our portfolio. The big one is Chevron Indonesia.” For now, AC Energy is looking at Vietnam, which Mr. Francia said needs power capacity and is moving to privatize its market. “We don’t want the opportunity to slip away,” he said. Mr. Francia said the company’s exposure overseas make up just a small portion of its total attributable capacity, or the output that corresponds to its shareholdings in its various projects, most of which are in partnership with other companies. “Right now we are about 15% of the total 1,300 MW,” he said. “In terms of being systematic in putting our resources… [It’s] Indonesia first, then second Vietnam. The rest would be opportunistic.” AC Energy is “open to all possibilities,” but Mr. Francia said its priority is to invest in a platform, similar to what it did when it acquired 100% ownership of Bronzeoak Clean Energy and San Carlos Clean Energy earlier this month. The acquired companies have a portfolio of solar and biomass projects with a total capacity of 250 MW. Bronzeoak and San Carlos have since been renamed as AC Energy DevCo and Visayas Renewables Co., respectively. In just five years, Mr. Francia said AC Energy’s attributable capacity has reached 1,000 MW in 2016. The company has set a new target of 2,000 MW by 2020, of which 1,000 MW will come from renewable sources. In a statement distributed during the briefing, Mr. Francia said that “while it will take time to strengthen our presence in Indonesia, we have started to look around the Southeast Asia region and we hope to make our second regional investment in about 12-18 months.” Mr. Francia said AC Energy was also committed to be a “key placer” in the retail electricity supply market, although the plan has been placed on hold after the Supreme Court issued a temporary restraining order that blocked the implementation of provisions on retail competition and open access. He said some of the contestable customers or those consuming an average of 1 MW monthly have deferred their switch to sourcing their power from retail electricity suppliers from distribution utilities. PSALM defers Malaya Plant bidding By Danessa Rivera (The Philippine Star) Updated March 30, 2017 – 12:00am http://www.philstar.com/business/2017/03/30/1685792/psalm-defers-malaya-plant-bidding MANILA, Philippines –  State-run Power Sector Assets and Liabilities Management Corp. (PSALM) has deferred anew the bidding for the  650-megawatt (MW) Malaya Thermal Power Plant (TPP) in Rizal. PSALM officer-in-charge Lourdes Alzona said the bidding for the asset is “deferred until further notice.” “Bidding has been moved to have more time for the evaluation of options for the Board, in consideration of the DOE policy to ensure sufficiency of the power supply in the Luzon grid,” Alzona said. The state-run firm is waiting for the instruction of the Department of Energy (DOE) regarding the privatization of the power plant. Originally set on March 8, the bidding date has been reset to March 30 to take into consideration DOE’s proposal to convert the facility into a liquefied natural gas (LNG) plant. Prior the DOE’s proposal, the Malaya plant was supposed to be sold on an “as is, where is” basis. The final transaction document will take into consideration the requirement of DOE for the Malaya’s conversion to a baseload LNG plant, Alzona had said. The conversion of the asset will ensure reliable power supply in the future and allow the country a cleaner, more efficient and reliable power plant, Energy Secretary Alfonso Cusi said earlier. Dedicated regulator for airports proposed By: Miguel R. Camus Philippine Daily Inquirer 12:16 AM March 30, 2017 http://business.inquirer.net/227040/dedicated-regulator-airports-proposed International carriers operating in the Philippines are asking the government to appoint a dedicated economic regulator for airports, as they worry new air gateway privatization deals could lead to anticompetitive practices, increasing costs for passengers and leading to poor services. The Board of Airline representatives, whose members include the Philippines’ three domestic carriers as well as global giants like Delta Air Lines, Etihad and Singapore Airlines, made the request via a letter to the Philippine Competition Commission on March 23, 2017. In the letter, the group said an economic regulator for airports would protect the interest of all stakeholders, including passengers, airlines and airport service providers. “Independent economic regulators for airports exist in several countries, and have been very effective in creating a level playing field that benefit all airport users, where airport operators, if left unchecked, could otherwise exert significant unilateral market power,” the board said. “This is no different from how water and energy companies are regulated, and airports should in fact be regulated as any other public entity, given their importance,” it added in the letter addressed to PCC chair Arsenio Balisacan. The board cited the Department of Transportation’s plan to proceed with the public private partnership auction of five regional gateways, collectively valued at P108 billion. The board said it was not opposed to the PPP. But it made clear that the privatization of airports effectively transformed the facilities into monopolies. “This is in accord with the constitutional mandate that a monopoly, which is not prohibited, must be regulated,” it said. The board warned that poor regulation here could lead to airlines being “forced to pay exorbitant prices for the use of newly privatized facilities, or finding out that their chosen or existing service providers are no longer allowed to provide services.” “This will seriously compromise the airlines’ ability to serve the travelling public in a reliable and effective manner, and at a reasonable cost,” it said. MPTDC raises stake in TMC to 67% By Louella Desiderio (The Philippine Star) Updated March 30, 2017 – 12:00am http://www.philstar.com/business/2017/03/30/1685781/mptdc-raises-stake-tmc-67 MANILA, Philippines –  The toll road unit of Metro Pacific Investments Corp. (MPIC) is increasing its stake in Tollways Management Corp. (TMC) to 67 percent from 60 percent through the acquisition of shares worth over P400 million. In a statement, First Pacific Co. Ltd. said Metro Pacific Tollways Development Corp. (MPTDC) entered into an agreement with Egis Road Operation S.A. to purchase 26,600 shares representing seven percent of the issued share capital of TMC for P442.3 million on March 27. “The seven percent acquisition is expected to be completed by April 4 wherein the ownership of the seven percent TMC shares will be vested in MPTDC,” First Pacific said. In December last year, MPTDC acquired 53,200 shares representing 14 percent of TMC’s issued share capital for P884.7 million from Egis. Prior to the acquisition made in December, MPTDC owned 174,800 shares or 46 percent of the issued share capital of TMC. Upon completion of the December transaction, MPTDC held 228,000 TMC shares or 60 percent of the company. After the additional purchase of shares in April, MPTDC will increase its ownership of TMC by having a total of 254,600 shares or 67 percent of the company. Manila North Tollways Corp. president and CEO Rodrigo Franco said the decision to raise ownership in TMC is “part of our objective of consolidating our ownership of NLEX Corp., the company that will result from the merger of MNTC and TMC.” Through the merger, MPIC expects to create a stronger firm with streamlined processes and better ability to finance and undertake projects. PSEi closes down 0.1% By: Doris Dumlao-Abadilla Philippine Daily Inquirer 12:26 AM March 30, 2017 http://business.inquirer.net/227050/psei-closes-0-1 The local stock barometer faltered yesterday, reversing early gains brought about by upbeat US consumer confidence data. The main-share Philippine Stock Exchange index shed 7.46 points or 0.1 percent to close at 7,324, defying mostly upbeat regional markets. “Philippine stocks failed to match US stocks rebounding from their recent lull to close comfortably higher on the back of a blowout reading on consumer sentiment (the best since December 2000), the fastest housing price growth since mid-2014, a comment from Fed vice chair Stanley Fischer (projecting two more interest rate hikes this 2017), rallying crude prices and a new all-time high for Apple,” said Luis Gerardo Limlingan, managing director at Regina Capital Development. The Dow Jones Industrial Index gained 150.52 points or 0.73 percent to close at 20,701.50 overnight. The upbeat trading in Wall Street modestly perked up the local market in morning trade but all gains were erased in the afternoon. The main index was weighed down by the financial, industrial, mining/oil and property counters while the holding firm and services counters firmed up. Value turnover for the day was relatively heavy at P14.28 billion. Market breadth was negative, with 107 decliners edging out 79 advancers while 46 stocks were unchanged. Investors sold down shares of AGI, which fell by 2.05 percent while BDO, URC and LTG all declined by over 1 percent. Ayala Land, Aboitiz Power, Semirara, JG Summit and PLDT also declined. Jollibee gained 3.01 percent. In a disclosure, the homegrown fast-food giant said that for the first quarter of 2017, its brands in the Philippines would likely continue to have higher gross profit margins versus the same period last year. Jollibee added that it was aiming to at least maintain last year’s gross profit margins this 2017. SM Investments, DMCI Holdings and Globe Telecom all rose by more than 1 percent while Metro Pacific, Ayala Corp., Security Bank, Metrobank and Megaworld also contributed gains. TDF bids down as market shifts to RTBs By Melissa Luz T. Lopez Posted on March 30, 2017 http://www.bworldonline.com/content.php?section=Finance&title=TDF-bids-down-as-market-shifts-to-RTBs&id=142997 DEMAND for the month-long term deposits offered by the Bangko Sentral ng Pilipinas (BSP) dropped further yesterday, as banks chose to invest their idle funds in retail Treasury bonds (RTBs) issued this week in search for better yields. Total bids for the term deposit facility (TDF) slipped further to P156.914 billion on Wednesday, dropping from last week’s P179.947 billion and falling short of the P180 billion offered by the central bank. This came as tenders for the 28-day tenor came in at just P120.754 billion, barely filling the P150 billion put up for auction. The BSP even rejected some bids, taking only P120.504 billion as some market players asked for rates beyond what the central bank is willing to pay. As the bids dropped, the average yield climbed to 3.3746%, as banks and trust firms sought for rates ranging from 3.25% to 3.5%, matching the ceiling of the BSP’s interest rate corridor. On the other hand, the P30-billion offer for seven-day term deposits remained oversubscribed with offers reaching P36.16 billion, but logged lower than the previous week’s P39.186-billion demand. The average yield also ticked higher to 2.997% from 2.9896% a week ago. The TDF is the central bank’s main tool to capture excess liquidity in the financial system by allowing financial firms to place their idle funds under the new window in exchange for a small margin. Through this, the BSP expects to bring market rates closer to its 3% benchmark rate and prod the firms to pursue interbank lending. Central bank officials said the weaker demand for the month-long term deposits likely reflected the decision of market players to place their funds under the retail bonds offered by the Bureau of the Treasury. “The auction results of lower subscriptions and slightly higher rates are as expected given the availability of fresh supply from the national government in terms of the RTBs. Banks are still looking towards shorter-dated instruments, and as expected, will try to squeeze as much yield from alternative investment outlets,” BSP Governor Amando M. Tetangco, Jr. said in a text message to reporters. The government raised P70 billion from its auction of three-year RTBs in its initial offer on Tuesday, which fetched a coupon rate of 4.25%. The public offering of the debt papers will end on April 6. BSP Deputy Governor Diwa C. Guinigundo added that investors still preferred the week-long tenor as it gives more “flexibility” in terms of managing liquidity positions ahead of key developments in the global financial markets. “The market is anticipating further adjustments in the US Fed interest rate so longer-dated instruments are less preferred over the shorter-dated TDFs,” Mr. Guinigundo said separately, referring to future moves from the Federal Reserve. This also comes as trust firms scale down their placements under the TDF and the overnight deposit facility to 30% of their original volume by Friday, in line of a full phase-out of their access to the central bank’s facilities by June 30. Despite this, the BSP has decided to keep the weekly auction volume at P180 billion for the first two weeks of April, as officials see ample liquidity in the financial system. “These are all part of market dynamics which do not yet require any changes in the volumes of the BSP auction facilities. We’ll be monitoring liquidity levels against our forecast liquidity path,” Mr. Tetangco said, noting the need to provide “stability” in the conduct of the auctions while spurring bank lending activities. “The ultimate game plan is for banks to lend to the market for long-term projects that will generate employment and increase wealth. The TDF is here to help steer interest rates and not to be an investment outlet.” As of March 22, Mr. Guinigundo said only less than P800 billion out of P990 billion funds under the BSP’s old special deposit account have migrated to the TDF, leaving some P200 billion available in the banking system. Fitch affirms PH investment grade score under Duterte ABS-CBN News Posted at Mar 29 2017 09:17 PM http://news.abs-cbn.com/business/03/29/17/fitch-affirms-ph-investment-grade-score-under-duterte MANILA – Fitch Ratings on Wednesday affirmed its investment grade rating with a positive outlook on the Philippines, citing sustained economic growth momentum under President Rodrigo Duterte. Fitch also noted the country’s robust external creditor position, and low debt levels compared to similarly rated economies. However, “weak governance standards,” a narrow revenue base and per capita income and human development that are below the median for economies with similar ratings constrain the Philippines’ score, Fitch said. An investment grade ratings means the Philippines can borrow abroad at lower cost and gives the it a larger market for debt offerings. The country is similarly rated at investment grade by S&P and Moody’s. “Macroeconomic performance has remained strong despite the increase in incidents of violence associated with the administration’s campaign against the illegal drug trade while domestic political stability has been maintained,” the debt-watcher said in a statement. “Fitch will continue to monitor the impact of the president’s campaign against drugs on economic performance, financing flexibility and capital flows,” it said. Duterte was elected by one of the largest margins in history last year with the promise to dismantle illegal drugs rings and improve peace and order. A positive outlook means an upgrade could happen. Fitch said the rating might be raised if strong growth that could withstand external developments, including growing protectionism, continues. Fitch said it would also monitor efforts to broaden the tax base. A “deterioration” in governance standards and political instability could cause a downgrade of the positive outlook to stable, Fitch said. Gross Domestic Product grew 6.8 percent in 2016 and economic managers are expecting growth of between 6.5 to 7.5 percent in 2017. Fitch forecast growth of 6.8 percent this year and 6.7 percent next year. Phl, Hungary to strengthen ties By Richmond Mercurio (The Philippine Star) Updated March 30, 2017 – 12:00am http://www.philstar.com/business/2017/03/30/1685794/phl-hungary-strengthen-ties MANILA, Philippines –  The Philippines and Hungary are looking to bring their bilateral ties to new heights following the signing of an economic cooperation agreement and the re-opening of the embassy of Hungary in Taguig. Trade and Industry Secretary Ramon Lopez and Hungarian Minister for Foreign Affairs and Trade Peter Szijjarto have signed the accord which aims to create a Joint Economic Commission (JEC) for both sides to serve as a platform to discuss trade, investments, economic cooperation and other related matters. Lopez said the JEC would be a venue to discuss sectors or areas of mutual interests, as well as means to broaden and intensify cooperation between both countries. On trade, the Philippines is determined to promote products such as electronics, auto parts, processed food, costume jewelry/giftware, and personal care products to Hungary. Meanwhile, sectors eyed for investment promotion include manufacturing, aerospace, processed and specialty food, IT-BPM, energy efficiency technologies, retail, and training center. “The Philippines can also capitalize on Hungary’s strengths and expertise to enhance implementation of existing industry roadmaps on automotive, electronics, pharmaceuticals and medical technology, information and communications technology and food,” Lopez said. In 2016, Hungary ranked as the Philippines’ 40th trading partner (out of 226), 26th export market (out of 213) and 63rd import supplier (out of 206). Toshiba’s Westinghouse files for US bankruptcy protection Makiko Yamazaki and Tim Kelly, Reuters Posted at Mar 29 2017 04:29 PM http://news.abs-cbn.com/business/03/29/17/toshibas-westinghouse-files-for-us-bankruptcy-protection TOKYO – Toshiba Corp’s troubled US nuclear unit Westinghouse filed for Chapter 11 protection from creditors on Wednesday, as its Japanese parent seeks to limit losses that have plunged it into crisis. A bankruptcy filing will allow Pittsburgh-based Westinghouse, whose nuclear plant projects have been dogged by delays and cost overruns, to renegotiate or break its construction contracts, although the utilities that own the projects would likely seek damages. For Toshiba, the aim is to mitigate liabilities stemming from guarantees it provided backing the contractor’s work. Toshiba said Westinghouse-related liabilities totaled $9.8 billion as of December. Westinghouse said it as secured $800 million in financing to fund and protect its core businesses during its reorganization. Toshiba, whose shares have crashed as Westinghouse’s problems surfaced, said in a statement it would guarantee up to $200 million of the financing for Westinghouse, adding that the troubled unit would be removed from its consolidated books at the end of the month. The Japanese company said it would hold a news conference at 0845 GMT (4:45 p.m. in Manila) Westinghouse, which made the filing at the US. Bankruptcy Court for the Southern District of New York, said that its operations in Asia, Europe, the Middle East and Africa would not be impacted by the filing. “We are focused on developing a plan of reorganization to emerge from Chapter 11 as a stronger company while continuing to be a global nuclear technology leader,” Westinghouse Interim President and CEO Jos Emeterio Gutirrez said in a statement. Wells Fargo reaches $110-M settlement Posted on March 30, 2017 http://www.bworldonline.com/content.php?section=Finance&title=Wells-Fargo-reaches-$110-M-settlement&id=142996 WELLS FARGO & Co. reached a $110-million settlement with customers nationwide over claims its employees set up fraudulent accounts to boost their own pay, a deal that moves the bank another step toward closing the books on last year’s scandal. Revelations that Wells Fargo employees may have opened more than 2 million deposit and credit-card accounts without customers’ permission has prompted sweeping changes at the San Francisco-based lender. The bank eliminated a system of sales targets that regulators said encouraged workers to create fake accounts. It also fired or demoted five people who had served as senior managers in the consumer business. Wells Fargo agreed six months ago to pay $185 million in fines and penalties as part of a settlement with federal regulators and the Los Angeles city attorney’s office. The San Francisco-based bank didn’t admit or deny wrongdoing as part of that agreement. The deal, announced Tuesday by the bank and in a court filing, covers dozens of lawsuits filed across the country, including 10 in San Francisco federal court. The agreement must still be approved by a judge. “We want to ensure that each customer impacted by our sales practices issue has every opportunity for remediation, and this agreement presents an additional option,” Wells Fargo Chief Executive Officer Tim Sloan said in a statement. “We continue to encourage customers to contact us directly so that we can act quickly to refund fees and address any concerns.” Wells Fargo still faces regulatory and criminal probes over the unauthorized accounts, as well as lawsuits by investors and former employees. Separately, in a report posted Tuesday, the Office of the Comptroller of the Currency (OCC) faulted Wells Fargo for engaging in an “extensive and pervasive pattern” of discriminatory and illegal lending practices for years. Many of the cases cited by the OCC already were announced years ago in settlements, including some misconduct that predated the 2008 financial crisis. The OCC lowered its overall score of the Wells Fargo’s compliance with community banking laws to “needs to improve.” “We are disappointed with this rating given Wells Fargo’s strong track record of lending to, investing in and providing service to low- and moderate-income communities,” Sloan said in a separate statement. “However, we are committed to addressing the OCC’s concerns because restoring trust in Wells Fargo and building a better bank for our customers and our communities is our top priority.” The settlement of the consumer class-action case comes after Wells Fargo faced a backlash by legislators when it tried to force its customers into closed-door arbitration rather than pursue their grievances collectively in open court. The deal was achieved almost two years after the case was filed and after many months of hard-fought negotiations with the assistance of a neutral mediator, according to a statement from Keller Rohrback, the law firm representing the customers. “The $110 million settlement, if approved, will require Wells Fargo to repay the fees charged to class members by Wells Fargo for unauthorized accounts, and provide millions of dollars of additional monetary relief to the class,” Derek Loeser, a lawyer for the plaintiffs, said in the statement. “We believe this is an outstanding result obtained for the benefit of a proposed nationwide class, notwithstanding Wells Fargo’s effort to block the class action with an arbitration clause.” A federal panel of jurists is slated on Thursday to consider whether all consumer cases against the bank should be consolidated before a single judge. — Bloomberg