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Daily Archives: May 24, 2021
Brooks Brothers’ billionaire former owners are sued over its bankruptcy – Reuters
Posted: May 24, 2021 at 8:08 pm
A pedestrian walks past a closed Brooks Brothers store, following the outbreak of coronavirus disease (COVID-19) in the Manhattan borough of New York City, New York, U.S., July 23, 2020. REUTERS/Carlo Allegri
The billionaire Italian family that until recently owned Brooks Brothers has been accused in a lawsuit of driving the iconic apparel retailer into bankruptcy instead of selling it, to avoid paying millions of dollars to an investor.
In a complaint on Monday, Hong Kong clothing maker Tal Apparel said Claudio Del Vecchio and his son Matteo pressured it to invest $100 million in Brooks Brothers in 2016, and promised it would be "made whole" if they later sold the retailer for less than $652 million.
The complaint said the Del Vecchios lined up "several" bids for Brooks Brothers in 2019, before the COVID-19 pandemic, but did not pursue them because they would owe Tal money, and even asked if Tal would take a "haircut" on any payment.
Instead, the family put Brooks Brothers into Chapter 11 last July, making Tal's original investment "nearly worthless," according to the complaint in Manhattan federal court.
The defendants include the Del Vecchios and Delfin SARL, a holding company for family investments including eye wear giant EssilorLuxottica (ESLX.PA) and Mediobanca (MDBI.MI). Claudio Del Vecchio bought Brooks Brothers in 2001.
A person close to the Del Vecchios said: "The allegations in the complaint are false and we expect the court will dismiss the case." Delfin, which owns a small Brooks Brothers stake, declined to comment.
Tal is seeking $100 million of damages, less sums received from Brooks Brothers' bankruptcy estate.
The 70-year-old family-run firm said it makes one in six dress shirts sold in the United States, and Brooks Brothers had been its largest customer.
Forbes magazine said on Tuesday the Del Vecchio family is worth $27.9 billion.
Founded in 1818, Brooks Brothers is the oldest continually operating U.S. apparel brand, known for its suits, preppy clothing, and dressing 40 U.S. presidents including Abraham Lincoln, John F. Kennedy and Barack Obama.
A venture backed by licensing company Authentic Brands Group and mall owner Simon Property Group (SPG.N) acquired Brooks Brothers in bankruptcy for $325 million.
The case is Castle Apparel Ltd et al v Del Vecchio et al, U.S. District Court, Southern District of New York, No. 21-04406.
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A crucial step – mutual recognition and assistance to insolvency/ bankruptcy proceedings between Hong Kong and the mainland – Lexology
Posted: at 8:08 pm
On 14 May 2021, the Government of HKSAR and the Supreme People's Court signed the "Record of Meeting of the Supreme People's Court and the Government of the Hong Kong Special Administrative Region on Mutual Recognition of and Assistance to Bankruptcy (Insolvency) Proceedings between the Courts of the Mainland and of the Hong Kong Special Administrative Region" which effects a cooperation mechanism for Hong Kong liquidators and Mainland administrators to seek mutual recognition and assistance. This is no doubt a significant development in furthering judicial cooperation on cross-border insolvency matters between the jurisdictions.
The New Cooperation Mechanism (the "New Mechanism")
Pursuant to "The Supreme People's Court's Opinion on Taking Forward a Pilot Measure in relation to the Recognition of and Assistance to Insolvency Proceedings in the Hong Kong Special Administrative Region" (the "Opinion") a Hong Kong liquidator or provisional liquidator may apply to the Mainland Courts for recognition and assistance. Likewise, Mainland bankruptcy administrators may do the same in reverse. Personal bankruptcy is not included in the New Mechanism.
Key highlights of the Opinion are:-
1. "Hong Kong Insolvency Proceedings" covers (i) compulsory winding up; (ii) creditors' voluntary winding up; and (iii) schemes of arrangement: provided that Hong Kong is the centre of main interests of the wound-up company/debtor (collectively referred to as "Debtor") for at least 6 months continuously before the making of the application.
2. "Centre of main interests" means the place of incorporation of the Debtor, but the Supreme People's Court will consider other factors in making the final determination, including: (i) the place of principal office; (ii) the principal place of business; and (iii) the place of principal assets of the Debtor.
3. Both liquidators and provisional liquidators in Hong Kong Insolvency Proceedings may apply to the Mainland Courts for recognition and assistance.
4. The Supreme People's Court has initially designated Shanghai, Xiamen and Shenzhen as the pilot areas. It is expected that the cooperation mechanism will gradually extend beyond these areas.
5. Applications can be made under the New Mechanism where the Debtor's principal assets, place of business or representative office is situated in a pilot area.
6. Procedures for making the recognition application are to be made in accordance with the rules of the relevant pilot area.
7. After Mainland recognition of the Hong Kong Insolvency Proceedings (i) payment of debts made by the Debtor to individual creditors will be invalid; (ii) civil proceedings or arbitration involving the Debtor that have not yet concluded will be suspended; and (iii) Mainland measures for preserving the Debtor's property will be lifted and any execution suspended (in other words a creditor moratorium).
8. An application for recognition and assistance may be refused by the Mainland Court on any one of the following grounds:
a. Hong Kong is not the centre of main interests of the Debtor or it has been situated in Hong Kong for less than 6 months continuously before the making of the application;
b. Article 2 of the Enterprise Bankruptcy Law of the People's Republic of China is not satisfied. Article 2 sets out the circumstances under which a Debtor can make a bankruptcy application to the People's Court, namely where the Debtor cannot pay off his debts due and his assets are not enough for paying off all the debts, or he apparently lacks the ability to pay off his debts;
c. Mainland creditors are unfairly treated;
d. There is fraud (presumably committed by the Debtor although this is not expressly set out in the Opinion); or
e. Other circumstance where the Supreme People's Court considers that recognition or assistance should not be rendered (e.g. recognition or assistance may "violate the basic principles of the law of the Mainland or offend public order or good morals").
Details of the New Mechanism, including documents required for making an application and the powers of recognised Hong Kong liquidators and Mainland administrators are set out in the Opinion and a Practical Guide issued by the Government of the HKSAR.
Significance of the New Mechanism
There can be no doubt that the New Mechanism marks an important development in the Hong Kong R&I market.
It has long been recognised that it would be desirable to introduce a formal insolvency recognition regime between Hong Kong and the Mainland given the volume and interconnected nature of their economies. In the absence of a formal mechanism, Justice Harris of the Hong Kong High Court has adopted, developed and relied on a number of core common law principles to recognise and grant assistance to foreign liquidators. More recently His Honour recognised bankruptcy administrator appointments made by the Mainland Courts:
Click here to see our Client Alert on "First recognition order granted by the Hong Kong Court to PRC insolvency practitioners"
For Mainland companies outside the pilot areas, the Hong Kong Court will continue to adopt the above jurisprudence when considering a recognition application.
The New Mechanism is precisely what the Hong Kong R&I market has been waiting for over many years. The reach of Hong Kong liquidators will now extend across the border into the Mainland: a right not afforded to overseas appointment takers and thereby entrenching Hong Kong as the primary restructuring hub for Greater China.
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Retirement? How? Im 65, have nothing saved and am coming out of bankruptcy. – MarketWatch
Posted: at 8:08 pm
Im 65 years old, self-employed in pet care so not big earnings. I earned $36,000 before COVID. I really have zero in savings. No 401(k). I rent my apartment and lease a car.
The Bad: I went through a bankruptcy in 2011 due to my husband leaving me. That is set to fall off my record in July this year. My credit score now is around 726 and 730. I think it will go up after the bankruptcy clears.
But now what? My Social Security will probably be about $1,100-$1,200 a month at Full Retirement Age. This is impossible to live on in this country.
I was an actor for many years, and now take care of doggies (which I love) but its low pay. In other words, my skill set is paltry in light of todays economies and technologies.
The Ugly: I tried to finish college and finally get my degree about 15 years ago, but the educational counselor was so negative about my chances that it was discouraging and depressing, so I let go of that intention. Now I think, sadly, she was supposed to encourage and guide me.
The Good: This year, I finally paid off $20,000 in credit card debt that had been weighing me down, by doing 0% interest balance transfers for the past few years. So I now have very little credit card debt which I pay off in full every month to avoid Interest charges.
Any helpful suggestions on how to lift myself into a better financial situation?
Thank you.
JV
See: Im a 74-year-old widower in a five-bedroom house just making monthly payments and no retirement nest egg should I sell or rent out my home?
Dear JV,
Please dont be too hard on yourself. Lets start with the fact that youve gotten your debt in order that is a huge accomplishment.
Youre right to question how retirement could possibly work given your situation, but if youre flexible with when and how youll retire, there is absolutely hope in achieving a better financial situation.
I say flexible because if youre willing to work a while longer and maybe take on some side gigs or learn a few new skills, you can bring in more income as well as let your Social Security benefits build up a bit more before you claim.
It would be great if she could continue to work until age 70 to maximize her Social Security benefits, said Stephanie Trexler, chief executive officer and a certified financial planner at Golden Goose Wealth Planning. You mention your pay isnt substantial now, and Im sure the pandemic didnt help, but theres nothing wrong with following your passion of pet care and earning a little extra on the side. This could be by dog walking or pet sitting, or teaching obedience classes (especially since many people who adopted pups during the pandemic may need a little help training their furry loved ones when they go back to an office). You could even use an unrelated skill like sewing to make bandanas for puppies you then sell on Etsy or local craft shows, Trexler suggested. Ill dive into this a bit further later on.
First, lets briefly discuss what needs to happen. There are two primary ways for you to improve your financial situation, said Cody Garrett, a certified financial planner: increasing your income and decreasing your expenses. Youve gotten your debt under control, and once that is completely paid off, you will likely have more cash flow available to you.
Another exercise is to look closely at where your money is going every month. If youve already curbed much of your discretionary spending, thats fine, and if you still treat yourself to a few experiences or things you enjoy (take-out coffee, a dinner out or maybe a new shirt at your favorite store, for example), thats perfectly OK. This exercise should not be about stripping yourself of what you enjoy, but instead ensuring youre spending money on what you value and balancing present-day spending with saving for the future.
Try to have at least three months worth of expenses saved to provide a cushion, said Leyla Morgillo, a certified financial planner at Madison Financial Planning Group. Try to find a local office of aging to see if there are any assistance programs you qualify for as well, she suggested. Offices of Aging can point you in the right direction for help on health, employment, housing, food and meals and so on. A simple Google search of office of aging with the name of your state or county could provide you with these results.
Now lets talk about Social Security. Delaying Social Security is a surefire way to see more money in those monthly paychecks. The longer you wait, the higher the benefit paycheck roughly 8% each year you delay up until age 70.
If you need to claim Social Security as soon as possible something many Americans must do then thats what you need to do. So many people ask themselves if and when they should begin receiving their Social Security benefits, and there are so many factors to consider, such as financial need, age, life expectancy and so on. The greatest question in your particular situation, however, may be this: Can I meet my lifestyle expenses right now without Social Security?
If the answer is yes, consider holding off. It doesnt have to be until age 70 (even waiting a year or two will gift you a slightly higher benefit). If the answer is yes, but only temporarily, try to at least wait until your Full Retirement Age, which would be around 66 years old (assuming you were born in 1955 or 1956).
Before you claim, reach out to the Social Security Administration, which can calculate your benefits and provide possible alternatives. For example, check to see if youre eligible to claim spousal benefits based on your ex-husband. These rules can seem overly complicated and confusing, but if you two were married for more than 10 years, you might be able to receive benefits based on his record, Garrett said. If so, and you applied for your own benefit, youd get yours plus an additional amount if your ex-husbands benefits are higher.
If your ex-husband was born before Jan. 2, 1954 and has already reached his own Full Retirement Age, you could instead choose to receive just his benefit while still delaying your own, Garrett added. This is where the Social Security Administration can help you make sense of your options.
Also see: Confused about Social Security including spousal benefits, claiming strategies and how death and divorce affect your monthly income?
Keep in mind, these are all very introductory steps for you to take, but they could help you improve your current situation.
Theres just one more thing Id like to add before I end this letter, and it has to do with what you said about your experience pursuing additional education. Im sorry to hear what the educational counselor said to you, and you became discouraged. But just because that one person was negative doesnt mean you have to give up your goals entirely to pursue an education or extra skill sets.
If college classes are too expensive right now, there are other ways to pick up skills. YouTube is an excellent resource for learning. There are so many wonderful, free tutorials to pick up a few lessons. Take, for example, Trexlers suggestion to sew puppy bandanas. If you didnt know how to sew, you could likely figure it out after following a reputable, helpful guide on YouTube.
There are also a plethora of websites that offer free classes. AARP curated a list of sites that offer free content from a wide range of sources, including top-notch universities. If youre willing to work on these classes during your free time, that would open up a ton of opportunities to make some extra money at your current job or in the form of a side hustle.
Do not be discouraged about not having a new skill set, Garrett said. Discover ways to translate your current strengths that made you a talented actor and a responsible dog sitter into a new job or career opportunities.
Readers: Do you have suggestions for JV? Add them in the comments below.
Have a question about your own retirement savings? Email us at HelpMeRetire@marketwatch.com
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Hertz, the Original Meme Stock, Rewards Its True Believers – The Wall Street Journal
Posted: at 8:08 pm
When shares of Hertz Global Holdings Inc. soared after the company filed for bankruptcy a year ago, finance professionals reacted with a mix of confusion and scorn. Stockholders routinely get wiped out in bankruptcies, so who would put money into a stock like that?
Zack Konovitch would. The 33-year-old real-estate broker from Brooklyn, N.Y., said he invested in Hertz near its low point in 2020.
A year later, small investors who bet on the company in its distress are getting the last laugh. The century-old rental-car giant is poised to mint big gains for loyalists on its way out of bankruptcy. Its a result that seemed unfathomable when its business unraveled early in the Covid-19 pandemic and another marker of an upside-down year in markets.
Mr. Konovitch said he is up about $15,000 on his Hertz bet. I always thought someone was going to come in and buy them out because the company is one of the biggest rental-car providers, he said.
On Friday, a bankruptcy court approved a winning auction bid that will hand control of Hertz to institutional investors who won a heated competition to buy the company out of bankruptcy as its prospects brightened. Hertz expects stockholders to receive more than $7 a share of value out of the deal, and perhaps as much as $8 a share, as the company emerges from chapter 11.
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John Oliver Bankruptcy Breakdown – Part 1: What He Got Right – South Florida Reporter
Posted: at 8:08 pm
True comedy has just enough truth in it to make it sting, and John Oliver is a master at delivering the laughs with lessons, and dya think that stick.The April 18, 2021 show featured bankruptcy as a central subject. An unusual topic for a comedian, yes, but one thats very much in need of discussion.
Household debt grew significantly during the first quarter of 2021,though credit card debt dropped. That speaks of millions more ordinary Americans in desperate financial straits who have considered the impact on their credit ratings and thesocial stigma of bankruptcy, and out of fear, do nothing.
Bankruptcy presents more problems for the working poor and lower middle class than for the more well-off. When the filing party is a homeowner, there are protections to safeguard their home as exempt from the bankruptcy estate. In contrast, those who rent their home people of lesser means may not be able to persuade their landlord to let them stay in apartments when rent payments are suspended. While eviction actions cant take place until after discharge, they often follow immediately thereafter. Finding housing with a bankruptcy on your credit report is not an easy task, especially now with so many unable to pay rent due to the COVID eviction bans.
While the wealthy and many businesses make use of bankruptcy as a matter of course, the working poor and those in poverty are often discouraged from applying in more subtle ways. Bankruptcy costs money; everyone will tell you that. For people trying to scrape up enough to feed their kids and put new tires on the car, that knocks bankruptcy right out of consideration. The most common type of bankruptcy for individuals isChapter 7 followed by Chapter 13. Chapter 11 is more of a Chapter 13 for businesses that need to reorganize.
Back when wages actually paid for a family to not just survive but thrive, credit cards didnt get much use. They were pretty tightly regulated, but as deregulation fever took hold in Washington (thanks again, lobbyists), they started to market themselves more aggressively to people whose wages were beginning to feel a little pinched.
With the new access to credit came the debt cycle minimum payments, interest hikes, over-limit fees, late fees, and an endless cycle of making payments yet still having more debt. Understandably, during the dark days of the 1987 recession, many people cut out of this cycle by filing for bankruptcy.
The banks responded by you guessed it lobbying members of the House and Senate to curb bankruptcy abuse in a 1998 bill. By then, the worst of the 1987 Recession was behind everyone or so they liked to think. The bill made it harder for consumers to leave their debts behind.
Only one senator voted against it, thelate Paul Wellstone (D-Minn) who was offended by the banks cash blitzlobbying effort that made sure Wall Street was heard over and above those on Main Street. In 2005, during the Bush Administration, the bankruptcy code was further amended to includea Chapter 7 means test and an in forma pauperis categorywhere filing fees are waived for someone who cant afford them.
The rich are different from the rest of us, and the reason for that is nothing more or less than they can afford to be. They have access to expert legal and financial advice and all manner of special breaks meant to do nothing more than to help them accrue and retain more wealth.
Even tax breaks are targeted to those who are solidly upper-middle-class this includes tax breaks for home offices, mortgage interest deductions, and so on. Can you have a home office in a one-bedroom apartment? Yes, if youre going to give up your bedroom or dining room. Having a home office in a four-bedroom house is a lot easier.
For the wealthy, being bankrupt does not equal being broke. All that expert advice gives ways to shield the goodies homes, cars, art, jewelry from bankruptcy. All too often, those goodies are protected either as assets in a business or a trust. In the case of putting the trusts in a business such as a family office, the assets belong to the business and are not part of a personal bankruptcy.
In the case of a trust, trusts are an instrument that the debtor does not directly control and is therefore exempt from being part of the bankruptcy estate. Furthermore, the rich use bankruptcy as a business tool hows that for abuse?
Some reasons for the wealthy filing for bankruptcy are:
Its not so much that the rich are different from the rest of us; their money lets them buy better exit strategies when their debts become bothersome.
You have options! Well work with you for your best outcome, and you may not even need to file for bankruptcy. Whatever services you need, we will make sure they are affordable to you.Get in touchwith any of our offices and take advantage of a free consultation with a bankruptcy attorney.
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John Oliver Bankruptcy Breakdown - Part 1: What He Got Right - South Florida Reporter
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Irvine To Discuss New Policy Easing Restrictions On Personal Office Budget Spending – Voice of OC
Posted: at 8:07 pm
Irvine City Council members could take more control over their personal budgets next week as they discuss removing most of the restrictions on the $100,000 they each receive annually to fund their offices and activities.
The shift comes after Councilman Mike Carroll was accused of improperly spending his aide budget on advertising community events he hosted, which critics say gave him an advantage in the election using public tax dollars. Ultimately, the then council voted to retroactively approve the spending and to discuss changing the policy for the next fiscal year.
Read: Irvine City Council Approves Councilman Mike Carrolls Mailer Spending Despite City Policy Violation
Originally established in 1984, the council members individual budgets were restricted purely to spending on council executive assistant salaries and associated expenses, office equipment and supplies, with a caveat that any other spending had to be approved by a vote of the full council.
Under the proposed guidelines, as long as council members dont exceed their total budgeted allowance, they can spend the funds on whatever they want if they get the request approved by the city managers office and the finance department, according to a city staff report.
The issue only comes in front of the council if a council member wants to spend more than their allotted budget.
Interim City Manager Marianna Marysheva said the proposed changes were put forward to bring the councils budget in line with the way city departments handle their spending.
For example, (departments) can transfer unused appropriations in their budget. If they have salary savings and they need consultants, or they need to add to a particular contract, they have that flexibility in the budget, Marysheva said. The same rules would apply to council office budgets if approved, that they would have the flexibility to use their total funding allocated within applicable rules and regulations.
In addition to their staff funds, council members each receive $10,000 a year they can allocate to charities and nonprofits in the city, which will remain separate from the staff budget, according to Marysheva.
Last November, Carroll said he would be pushing hard for more freedom on how council members can spend their money in the next budget.
Each council member of the city of Irvine gets approximately $100,000 a year, and council members should be able to spend that as they see fit to assist the 280,000 residents of Irvine, Carroll said in a phone call with Voice of OC then.
Carroll, Councilman Anthony Kuo and Mayor Farrah Khan did not return requests for comment.
Councilwoman Tammy Kim said she was a big fan of the proposed system, outlining how the flexibility would let council members structure their priorities as they saw fit.
We were elected because of our abilityto manage multi million dollar budgets. Thats what constituents expect a council member to be able to do, Kim said. Theres a certain amount of trust that goes into whoever you elect.
When asked about resident concerns around Carrolls spending, Kim said she didnt view his spending as an abuse of power and it was an advantage of being an incumbent.
There are city services you have to promote, so I get the flyers from (Assemblyman) Steven Choi all the time. And yes, one could argue its campaigning but is it really? Youve got to be able to reach out to your constituents regarding whats going on or what they have access to, Kim said. If thats where a council member chooses to spend their money, thats their right. Im saying this as someone who ran against Mike.
Councilman Larry Agran said while he supports the existence of the council aide program, he wants to be sure theres enough oversight for where the money is going.
My mind is open on the subject, as far as how these reforms might work out in practice, Agran said. I would have to think about it a little bit.
The council will vote on the new policy at its 4 p.m. meeting on Tuesday, which can be viewed here.
Noah Biesiada is a Voice of OC Reporting Fellow. Contact him at nbiesiada@voiceofoc.org or on Twitter @NBiesiada.
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Irvine To Discuss New Policy Easing Restrictions On Personal Office Budget Spending - Voice of OC
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Fossil fuel divestment is the road to climate justice – The Conversation CA
Posted: at 8:07 pm
In 2017, responding to pressure from students and faculty, McMaster University created an advisory committee to consider whether to divest its endowment from fossil fuels.
In its report, which recommended actions to reduce the universitys carbon footprint and promote climate change research, the committee recommended against divestment from fossil fuels. The reasons cited included the difficulty of exiting pooled investment funds containing Carbon Underground (CU) 200 firms(the top 200 coal, oil and gas firms ranked by potential carbon emissions of their reported reserves); the relative riskiness of renewable energy investments; and the dismissal of divestment as a purely symbolic gesture.
Similar rationales had guided universities throughout Canada with the exception of Laval to reject fossil fuel divestment.
But a lot has changed since then.
The relative riskiness of oil and renewables is shifting and some firms have built strong track records in fossil-free investment. Most significantly, the 2018 International Panel on Climate Change (IPCC) report shows that the effects of climate change are more rapid and severe than predicted.
Divestment continues to be a hard sell at Canadian universities, however, and its worth considering why.
I enter the debate on divestment as an environmentalist, convinced by the science that shows the danger of climate change and the role of fossil fuels in accelerating it. My approach also reflects my research in environmental humanities, which analyses the entanglement of liberal values like diversity, sustainability and resilience with the culture of settler colonialism and uses tools from feminist and decolonial cultural studies to imagine different models of climate justice.
Oil is the lifeblood of our current culture and our climate crisis. This insight and its implications have emerged through the work of scholars in the energy humanities. Imre Szeman, Sheena Wilson and Adam Carlson, communications and media researchers, observe that: Freedom, identity, success: our deepest ideals and most prominent social fantasies are mediated and enabled by the energies of fossil fuels.
The conceptual framework of petroculture the set of values that our dependence on oil has created shows that culture fuelled by oil doesnt only influence our attitudes about it; petroculture saturates everything, including the institutions in which investment and divestment decisions are situated.
How does petroculture shape the divestment debate?
In Canada, one obvious element is the centrality of fossil fuels to our national identity (though fossil fuels accounted for only 10 per cent of the GDP in 2019).
Another strand of the anti-divestment argument is the seat-at-the-table narrative. Leaving aside questions about the effectiveness of shareholder activism, its powerful appeal owes something to the petrocultural values of engagement. If youve won a seat at the table, it seems like bad form to quibble over questions like: Why are some seats closer to the the table than others? Who designed the table? Who owns it? Whats it made of?
The framing of the seat-at-the-table strategy as an almost existential choice exit vs. voice, fight or flight highlights the values of mobility and positivity that are central to petroculture.
These values also inform the elevation of ESG (Environment, Society, Governance) investment principles, hailed by Alberta Premier, Jason Kenney as a valuable weapon against oil sands divestment.
Read more: What is sustainability accounting? What does ESG mean? We have answers
Deemed by some advocates as more subtle and sophisticated than negative screening, ESG also gains appeal by using the rhetoric of intersectionality, a term from critical race theory describing the overlapping dynamics of power (patriarchy, racism, homophobia, etc.) that determine landscapes of inequality.
In her extensive exploration of petro-intersectionality, media and cultural studies researcher Sheena Wilson, notes that while petroleum may have fuelled womens autonomy in the west, it exacerbates the disempowerment of women in the Global South who are also among the hardest hit by climate change.
She says the aura of feminism that permeates the rhetoric of ethical Canadian oil is further troubled in its omission of Indigenous women, whose political opposition is dismissed and whose communities pay the costs.
When fossil fuel companies talk about intersectionality the term evokes a vision of lean-in feminism (a concept created by Facebook COO Sheryl Sandberg in 2013 that has since drawn significant criticism), that seamlessly blends the ideals of diversity and competitive self-advancement.
Countering the positivity of leaning in, the point of divestment is to send a negative message, to undermine the social licence of an industry whose potential for harm exceeds the most stringent application of ESG principles.
To understand why universities have a hard time with this message, we can return to the table metaphor. Tables are places where meals are shared and decisions are made, about resource distribution, policies and procedures. As public funding disappears, corporations have moved to the head of the table of higher education. While investments might shift from sector to sector, its essential that business interests remain at the forefront, even as the conversation turns to social responsibility.
In March 2021, at the end of a fiscal year that dented not only the profits of oil, but also the culture of hyper-mobility, connectedness and leaning in that mediates it, McMaster President, David Farrar issued a statement calling on the Board of Governors to divest from fossil fuels as soon as possible. The timeline remains vague, though the way forward is clear.
In a small but consequential distinction from gradually withdrawing from an unprofitable sector, it will require the university to say No, to push away from a table that has been shown to be both inequitable and unstable but proves strangely hard to leave.
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After 15 years, the Navy’s littoral combat ships are still in search of a mission – The Columbian
Posted: at 8:07 pm
SAN DIEGO Almost 15 years ago, the U.S. Navy christened the first of a new class of warship designed to fight the Global War on Terrorism. The so-called littoral combat ships would be fast and agile, operating close to shore against missile-firing boats and small submarines.
Today, the Navy has a new mission or rather, has returned to its old mission, facing off against more capable warships deployed by China and Russia. And the service is still trying to figure out what to do with its $16 billion LCS fleet.
It doesnt help that some of the ships have suffered embarrassing breakdowns in mid-ocean. Or that the Navy discovered recently that the transmission in one of the two classes of ships was defective and needed to be redesigned. And while Congress has eagerly funded construction of the two very different classes of ships, it cut funding from the mission modules needed by the ships to fulfill their missions.
That unfortunate combination explains the ignominious nickname assigned to the LCS by some sailors: Little Crappy Ships.
The Navy intends to spend an additional $61 billion to maintain and operate the ships, according to the Government Accountability Office. But at the same time, the service announced plans last year to retire four of the earliest ships all based in San Diego beginning this summer, well ahead of the end of their projected service lives.
The Independence, the second ship of the LCS class, will decommission on July 31, followed by the first LCS, the Freedom, on Sept. 30, according to the San Diego-based Naval Surface Force Pacific. Plans to decommission the third ship of the class, the Fort Worth, and the fourth, the Coronado, were nixed by Congress in this years budget.
The Coronado only entered service in 2014. The ships, the Navy says, were designed to operate for at least 25 years.
The Navy said the money it saves in maintaining the first two ships will be put to better use elsewhere. Those ships, along with the Fort Worth and Coronado, are test platforms and are configured differently than newer littoral combat ships.
To remain ahead of our competitors, particularly under fiscal constraints, it is important for Navy to carefully review our force structure regularly and divest of legacy capabilities that no longer bring sufficient lethality to the fight, said Cmdr. Nicole Schwegman, a Surface Force spokeswoman.
Schwegman said plans to decommission the Fort Worth and Coronado are on hold and the Navy has not yet made a decision on how to proceed.
Fighting terrorists
When the Navys first littoral combat ship contract was awarded in 2005, the country was in the throes of fighting al-Qaida. U.S. troops occupied Iraq and Afghanistan and the Navy was looking for a small, maneuverable vessel to operate in the worlds littoral waters, or those close to shore. The ships were designed for automation and minimal manning early on, the Navy planned to only put 40 sailors on board each ship, a number that has since expanded to 70.
In an unusual move, the Navy also elected to field two different versions of the ship from different shipbuilders the steel-hulled 387-foot Freedom class, designed by Lockheed Martin and built by Marinette Marine in Marinette, Wisconsin, and the 421-foot all-aluminum trimaran Independence class, designed and built by Austal USA in Mobile, Alabama.
Both versions were meant to have modular mission capability the ability to go to sea with one of three interchangeable mission packages: anti-mine, anti-submarine or surface warfare.
In 2016, that modular model was abandoned, and the Navy said each ship would be dedicated to one of those three mission configurations.
The Navy is not getting what they expected to get out of LCS at this point, said Shelby Oakley, who oversees the GAOs work on Navy shipbuilding. There was a lot of over-promising of capability and technology and concepts that didnt come to fruition.
The ships have had issues with their power trains. To achieve their high speed sprinting as fast as 40 knots, or 46 mph each ship has four engines, two diesel and two gas turbines, and is pushed through the water via water jets rather than the traditional screw propellers. In January, the Navy stopped accepting Freedom-class littoral combat ships after discovering a design flaw in the combining gear of the vessels. The combining gear functions as a part of the ships transmission.
Testing is underway in Germany for a fix to the issue and the Navy is still working on a plan to install the fix on ships in the fleet, Schwegman said.
Land-based factory testing is currently underway at the RENK facility in Germany and will continue over the next several months, she said. This will be followed by sea-based testing.
The flaw only affected the Freedom-variant, Schwegman said, as the Independence-variant does not have a combining gear.
All of the Navys Independence-variants are based out of San Diego. All but two of the Freedom variants operate out of Mayport, Fla.; the Freedom and the Fort Worth are based in San Diego.
Littoral combat ships dont just look different than anything else on the waterfront the differences continue inside the skin of the ships.
On the Kansas City commissioned in San Diego last year, the 22nd LCS to enter the fleet the bridge more closely resembles that of the fictional starships of Star Trek than a traditional Navy ship. Two pilots seats reminiscent of aircraft cockpit seats are positioned center and forward on the bridge. The ships commanding officer, Cmdr. Christopher Brusca, explained that the officer of the deck drives the ship by controlling both the power and direction of the ships four water jets with a joystick-like dial, rather than the traditional setup of a helmsman steering with a wheel. The ships have no rudders.
Just like the bridge on the starship Enterprise, key members of the crew are all based on the bridge, including the engineering watch officer, tactical action officer, fire controlmen and operations specialists.
The ship also has very few crew spaces and no living quarters below its waterline, meaning the risk of flooding from collisions or battle damage is relatively low something unique to this variant, Brusca said. The ship also lacks the steep, often slippery ladder-wells found on other vessels; sailors transit an actual staircase between the decks.
The trimaran hull gives the ship another notable advantage, Brusca said: it only sits about 14 feet deep in the water, meaning it can get closer to shore than most ships. This gives the ship an advantage not just in warfighting, but in diplomacy, he said.
We can pull into ports that some other ships cant because those harbors are shallower, he said. So weve been able to pull into ports in Asia and have relationships with other countries and other communities within those countries that the Navy has not been able to go to before.
One of the issues with littoral combat ships is their lack of firepower. Combined with the aluminum hull of the Independence variants, concerns about ship survivability persist.
In 2019, the Navy installed the Naval Strike Missile on the San Diego-based Gabrielle Giffords, and it has since added the 100-mile-range anti-ship missiles to three more Independence-variant ships. The Navy plans to add to them to the rest of the class, Schwegman said.
As a training vessel, the Kansas City does not yet have the missiles, Brusca said. The Navy is prioritizing operational ships with the upgrade, which is a significant improvement.
An LCS that didnt have those missiles? Maybe not very threatening in the open seas, Brusca said. Now that those missiles are on, you better pay attention to where the LCSs are and that weve got a lot of them. We can definitely reach out an touch people.
Littoral combat ships are able to launch and recover both manned and unmanned helicopters from their rear flight decks.
The decision to retire the first littoral combat ships was seen as yet another example of the Navys poor post-Cold War shipbuilding strategy.
Another class of cutting-edge ship in San Diego harbor the stealth destroyers Zumwalt and Michael Monsoor have no ammunition for their main armament, a gun that was supposed to shoot rocket-assisted shells. The shells became too expensive when the class was cut from 30 ships to three again, partly because the Zumwalt classs mission changed. Once optimized for fire support close to shore, now the class is being transitioned into a missile-firing role.
The main problem with littoral combat ships, according to GAO watchdogs, is the way the Navy went about developing and purchasing the vessels. The technology on the ships was being developed at the same time as the ships were being constructed.
LCS is certainly one of those programs that was set up with a high-risk approach, Oakley said. And the outcome was reduced quantities, reduced capability, increased cost, schedule delays all those things that you dont want to have happen that happen all too frequently.
Oakley said shed recently embarked on a destroyer and noticed all the littoral combat ships sitting idle at Naval Base San Diego as they were leaving.
All youre seeing is LCS after LCS after LCS just sitting there, doing nothing, she said. So when you think about the stresses on the current fleet and all the things you hear about ships being run much longer (and) much harder than we expected having the LCS fleet and many of them just sitting there not accomplishing what they should be accomplishing really compounds that issue.
Diana Maurer, who has been monitoring the LCS program since the beginning for the GAO, stopped short of calling the program a boondoggle.
I think the simple way to answer whether this is or is not a success is just to look at the fact that the Navy is in the process of buying an entirely new class of ships the frigate because of shortfalls in the LCS, Maurer said. I think the thing that is most troublesome is who answers for the millions, the billions that have been left unused?
Maurer said that the Navy wasnt really able to try the ships before buying them.
The Navy had to kind of abandon that because the initial costs started being too high, Maurer said. And the manufacturers couldnt afford to build a new class of ship without an agreement that said the Navy would buy them.
Operation costs are also high with littoral combat ships. Because the ships are minimally manned, much of the maintenance and repair work is performed by expensive government contractors who have to travel to perform their jobs, the GAO said in an April report. The Navy also lacks the technical data to maintain several systems, the report said.
Adm. Mike Gilday, the chief of naval operations, said the Navy is looking for ways to shift some of that maintenance to sailors in an interview with Defense News this month. However, the manning levels on the ship could limit how much is shifted and that the Navy could adjust the manning on board to meet that need, Gilday said.
In testimony before a Congressional appropriations subcommittee on April 29, Gilday, said the service is bullish on LCS and the future of the ships.
The Navy currently has 12 Independence-variants and 10 Freedom-variants in the fleet, including the two set for decommissioning this year. The program will produce a total of 35 ships, Schwegman said.
However, the Navy also plans to field at least 20 new frigates over the next decade, at a cost of about $20 billion, according to data from the Congressional Budget Office. These new 496-foot frigates will be built out of steel and use propeller propulsion.
Theyll also come with a compliment of guided missiles in addition to the Naval Strike Missiles now being retrofitted onto Independence-variant littoral combat ships. The Navy expects construction to begin on the first frigate early next year.
The only of its modules that have been fielded on LCS to date is the surface-warfare package, Maurer said, which has led to a relatively low operation workload for the ships.
The problem is, since so much of the combat capability resides in the mission packages and theyre not done, you get a situation where you have ships with no mission packages, Maurer said.
Those other two mission packages are expected next year, Gilday told Defense News last month.
In the meantime, the Navy has found littoral combat ships to be effective in the Southern Command area of operations in the eastern Pacific, conducting counter-drug smuggling work with the Coast Guard. Theyve also deployed to the western Pacific and the Middle East.
One unfortunate benefit to the LCS program, according to the GAO experts, is that the Navy learned how not to buy new ships.
(With) the frigate, they wanted to make up for some of the wrongs of LCS, Maurer said. With LCS, the speed requirement drove a lot of decisions that kind of caused some of the demise of the program because they focused on speed at the expense of other things so that made certain other requirements more expensive.
Its unlikely littoral combat ships will find themselves part of the long-term Navy fleet alongside the aircraft carriers, destroyers and other surface combatants that have been around for decades, Oakley said. The new class of frigates and, increasingly, unmanned ships and aircraft will likely do the jobs the Navy once envisioned for LCS.
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Maintenance on Platt Road near Ann Arbor could affect traffic – MLive.com
Posted: at 8:06 pm
WASHTENAW COUNTY, MI Preventative maintenance work will cause lane restrictions on two roads in York Township.
The Washtenaw County Road Commission is performing chip seal projects along Platt Road between Willis Road and Bemis Road and Moon Road between Willis Road and Bemis Road beginning Monday, May 24, officials said.
The chip seal work is done under lane restrictions with a flagging crew at each end of the work area regulating traffic. The road commission expects the work to be completed by the end of this week. However, all dates are tentative and subject to change due to weather conditions.
Once the work is completed, the Washtenaw County Road Commission is advising drivers to lower their speeds to 35 mph while the stone settles. Motorists will see Loose Stones - 35 mph signs across the county this summer indicating that a road was recently chip sealed.
The road commission will return to this area in a few weeks to apply a fog seal on top of the chip seal and place permanent pavement markings, officials said.
Chip sealing is a maintenance strategy used to extend the lifespan of a road and help protect against the formation of potholes.
Road commission officials said they plan to chip seal approximately 100 miles of roadway this construction season.
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Seal Says He and Heidi Klum Have Never Had Teamwork Coparenting Their Kids – Us Weekly
Posted: at 8:06 pm
On opposing sides. Seal and Heidi Klum finalized their divorce in 2014 and havent had an easy time coparenting their four kids.
It can be challenging, the singer, 58, exclusively told Us Weekly on Monday, May 24, of keeping Leni, 17, Henry, 15, Johan, 14, and Lou, 11, grounded while promoting his 68th annual Boomtown Gala performance. It requires teamwork. If you are a team, if both parents are a team, then its really easy and thats not a real challenge at all. But you have to be a team. And if youre not a team, then it can all fall to pieces.
When asked if the Grammy winner had that with his supermodel ex-wife, 47, he replied, No. I never had that teamwork [with Klum]. We never had teamwork.
He and the former Project Runway host split in 2012, seven years after tying the knot. The model has since gone on to wed Tom Kaulitz, while Seal is currently dating a secret someone who makes him extremely happy and is all about love and teamwork.
Last year, he and the Germanys Next Top Model host made a temporary tweak to their custody agreement. Klum filed an emergency motion in August 2020 claiming that he would not allow their children to travel abroad with her amid the coronavirus pandemic.
The kids want to be with Heidi, a source told Us at the time. She has to go to Germany because of limitations of crew coming to the United States during [the pandemic], so she is bringing them back for a few weeks at Christmas to spend time with their dad.
The former couple reached an agreement the following week. From October 19, 2020 through and including December 19, 2020, and again from January 9, 2021 through and including February 23, 2021, Heidi shall be permitted to travel to Germany with the children, read court documents filed in Los Angeles Superior Court, noting that the Kissed By a Rose singer would be entitled to expanded time with the children upon their return.
The British songwriter went on to tell Us on Monday that his eldest daughter following in Klums modeling footsteps wouldnt have been his first choice for the teen. Thats a precarious road to take, he explained, saying that it seldom ends in happiness.
Leni and her siblings are just not all that impressed with their dads singing career, he added. We never really talk about my music at all.
Seal called his and Klums kids lives an extremely privileged one. He explained, Our children dont have challenges in the grand scheme of things. They live in a nice house. They dont have to worry about food on the table. They have the benefit of a great education.
The former Voice Australia coach, who is all about using privilege to help others, performed at the 68th annual Boomtown Gala on Sunday, May 23. The virtual event, which raised over $250,000 benefited Childrens Hospital of Los Angeles, CASA, The Rape Foundation and other local charities. Anytime one gets the opportunity to do something for children, then thats obviously a good thing, Seal gushed to Us.
With reporting by Christina Garibaldi
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