Other items: Board member quits in financial probe; Lenders agree to extend credit line; Senior VP of sales to resign next week ...
Nation / World
U.S. airlines will be ordered to inspect the rudders of certain Airbus jets within three months after an incident in which most of the rudder fell off an A310 in flight, a spokesman for the Federal Aviation Administration said yesterday.
The FAA directive, to be issued Monday, affects A310s and A300-600s. American Airlines and FedEx, the only U.S. airlines that fly those models, have a combined 112 of those planes.
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A plane operated by Canadian-based Air Transat lost nearly all of the rudder soon after leaving Cuba for Quebec on March 6. The pilot was able to control the aircraft and returned to Cuba. No one was injured.
“No one knows for sure what really happened, but we feel this is a prudent measure,” FAA spokesman Les Dorr said of the order.
Board member quits in financial probe
A high-profile Wal-Mart board member resigned yesterday after an internal probe turned up evidence of financial improprieties of as much as half-a-million dollars. Three Wal-Mart employees, including a company officer, also lost their jobs.
The world’s largest retailer said it asked Thomas Coughlin, who is also a former president and CEO of the company’s stores division, to step down because of “a disagreement” over the results of the probe, which involves between $100,000 and $500,000, and his “response to questions concerning his knowledge of certain transactions,” according to a regulatory filing.
In his resignation letter to Wal-Mart that accompanied the SEC filing, Coughlin wrote, “I leave with warm feelings for the company and all the people who have made it great. I have appreciated the opportunity to serve.” He could not be reached for comment yesterday.
Lenders agree to extend credit line
For the second time this year, Krispy Kreme Doughnuts Inc.’s lenders have agreed to push back a deadline before the company defaults on its $150 million credit line, the company said yesterday.
Krispy Kreme also said it was working with an unnamed lending group to replace the credit line that could have gone into default as early as yesterday. The company now has until April 11 to deliver financial statements for the quarter ended Oct. 31.
In a news release, Krispy Kreme said it would use the proceeds from any new credit line to repay in full the lenders under its current agreement and for general needs.
“There can be no assurance that such new credit facilities can be obtained,” the company said.
Senior VP of sales to resign next week
Adobe Systems’ senior vice president of worldwide sales and field operations will resign, the company announced.
Jimmie Stephens’s resignation is effective Thursday, San Jose, Calif.-based Adobe said yesterday in a filing with the Securities and Exchange Commission. The company didn’t give a reason for the departure or identify a replacement.Compiled from The Associated Press and Bloomberg News