LOCAL BRIEFING

Wednesday, April 16, 2008

LEGAL

W.R. Grace Asks High Court To Review Asbestos Ruling

W.R. Grace asked the U.S. Supreme Court to hear an appeal in a criminal case charging the company and six former executives with releasing asbestos that killed and injured residents of Libby, Mont.

If convicted, Columbia-based Grace, which makes specialty chemicals, may face a fine of as much as $280 million, according to securities filings. The individual defendants may be sentenced to as much as 15 years in prison.

Grace, also charged with interfering with a government cleanup, asked the high court to overrule a lower court ruling that adopted a government definition of "asbestos" under the federal Clean Air Act. Grace claimed that only about 5 percent of the material prosecutors said was released in Libby falls within the definition.

BANKRUPTCY

InPhonic Files Plan For Its Liquidation

InPhonic, a wireless service provider based in the District, filed a liquidation plan that includes the formation of a trust to administer its remaining assets. Under the plan, holders of unsecured claims totaling $106.5 million would receive a share of an unspecified amount of cash to be distributed by the trust. The trust would get the money from cash on hand, sales of some assets, litigation proceeds and funds provided by buyer Adeptio INPC Funding.

CONTRACTING

Lockheed Martin Wins Order for Fighter Jets

Lockheed Martin, the world's largest defense contractor, won Pentagon funding to produce 12 F-35 Lightning II fighter jets valued at about $2.6 billion. The Defense Department decided on April 8 to pay for six jets for the Air Force and six for the Marine Corps, a Pentagon official said.

CACI Wins $54.8 Million In Defense Logistics Work

Information technology services provider CACI International, based in Arlington, said it received a $54.8 million contract from the Defense Logistics Agency to help manage medical supplies and services for global military forces.

INTERNET

AOL Buys Sphere For Its Search Technology

AOL, Time Warner's Internet unit, bought Sphere to gain technology that lets users search for articles and blog posts as well as integrate the related content onto their own Web sites. Sphere, which is closely held, was founded in 2005 and is based in San Francisco. AOL recently moved from Dulles to New York. Terms of the acquisition were not disclosed.

ANTITRUST

Justice Dept. Approves Sale Of Sparrows Point Mill

The Justice Department approved the sale of the Sparrows Point steel mill near Baltimore to Russian steelmaker Severstal, which agreed in March to buy the plant from Arcelor Mittal of Luxembourg for $810 million. The Justice Department ordered Arcelor Mittal in 2007 to sell Sparrows Point because of antitrust concerns over the production of tin-plated steel.

ENTERTAINMENT

Snyder's Six Flags Seeks To Become More Like Disney

Theme park operator Six Flags aims to become an entertainment company with its own characters to entice thrill-seekers to its parks, its chief executive Mark Shapiro said in a speech at the National Association of Broadcasters convention.

Shapiro said Six Flags' previous strategy was based on its roller-coaster hardware, but now it would focus on building anticipation to its rides through stories and characters -- much like the Walt Disney Co. -- while upgrading attractions.

Washington Redskins owner Daniel Snyder has served as chairman of money-losing Six Flags since winning a proxy battle in 2005. Since then, the New York-based company has invested $100 million in revamping its business model, including purchasing half of Dick Clark Productions, producer of the Golden Globes.

Compiled from reports by Washington Post staff writers, the Associated Press and Bloomberg News.