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TECHNOLOGY
Vonage May Change Bond Payout
Vonage, the unprofitable Internet phone company, said it may change the terms of $253 million of debt to avert bankruptcy and persuade investors to hold onto the bonds.
Vonage may increase the interest rate on the convertible notes, modify their conversion price or change their maturity date, it said in a regulatory filing. It also may redeem a portion of the notes for cash or issue common stock to some creditors. The bonds can be redeemed as early as Dec. 16. Vonage said in November that it may not be able to honor the notes if investors convert all of them this year.
MORTGAGE FINANCE
Thornburg Missed Margin Calls
Thornburg Mortgage said it had not met a fresh round of margin calls totaling $270 million. The stock nosedived 51 percent, to settle at $4.32.
The new margin calls are the result of difficult market conditions and don't reflect the performance or long-term value of Thornburg's holdings, the company said. It said it can't be sure that it can raise new cash or capital at acceptable prices.
Court Backs Payment Program
A federal court struck down a Bush administration plan to eliminate a down-payment assistance program used by hundreds of thousands of low- and middle-income home buyers.
The program lets nonprofit organizations fund down payments and be reimbursed by the sellers of the homes. The administration sought to ban the program, contending that it leads to higher housing prices and a disproportionate number of foreclosures.
The Department of Housing and Urban Development must reassess the rule it adopted last October, and HUD Secretary Alphonso Jackson will be barred from the discussions, the U.S. District Court in Sacramento held.
EXECUTIVES
Starbucks U.S. Chief Resigns
Starbucks said U.S. division chief Launi Skinner resigned after six months on the job as Howard Schultz reshuffles management after taking over in January. Cliff Burrows, 48, currently president of the Europe, Middle East and Africa region, will take over the position on March 12. Skinner, 43, stepped down to spend more time with her family, Starbucks said. Schultz, who built the Seattle coffee chain into a company with almost 16,000 cafes, has been making management changes in recent months after Starbucks reported its first quarterly drop in U.S. customer visits.
New Managers at Force Protection
Armored vehicle maker Force Protection shuffled management Monday, just three days after telling shareholders it had major accounting problems tied to recording inventory.
