BofA Sent Back to Court Over Loan to Fontainebleau and 2 Other Dow Movers to Watch
Bank of America Corp. (NYSE:BAC): Current price $14.57
As the agent for a loan to a failed casino development by Fontainebleau Las Vegas LLC, BofA was sent back to district court to settle allegations that it acted negligently through the loan agreement, Bloomberg reports. The bank was responsible for paying lenders’ money to Fontainebleau toward a project on the Las Vegas Strip with an initial budget of $2.9 billion. On Friday, the U.S. Court of Appeals in Atlanta looked at whether the bank was correct in disbursing some funds after the financial crisis began in 2008 when making its decision. The lenders claimed that the bank’s payment to Fontainebleau in March 2009, during a credit crunch brought on by Lehman Brothers Holdings Inc.’s bankruptcy, was untimely since the borrower had not disclosed the projected project costs and that some lenders had dropped out, challenging a U.S. district judge’s ruling that the bank’s actions were in keeping with its agreements.
Exxon Mobil Corp. (NYSE:XOM): Current price $94.05
Sources told Bloomberg that Exxon Mobil Saudi Basic Industries Corp. will borrow $1.2 billion from banks for the expansion of its joint-venture petrochemicals project in Saudi Arabia. Al-Jubail Petrochemcial Co., also known as Kemya, will raise $2.2 billion through a mix of shareholder loans and bank debt, according to Bloomberg’s sources, adding that the funding will have a tenure of 10 years. Kemya is constructing a specialty elastomer facility on the country’s Persian Gulf coast that will produce 400,000 tons of rubber products annually, to be sold in Saudi Arabia, the Middle East, and Asia.
Hewlett-Packard Co. (NYSE: HPQ): Current price $25.78
Hewlett-Packard on Monday said that Orion Health — a New Zealand-based company involved in health information exchange, electronic health records, and healthcare integration solutions — has chosen HP Converged Cloud to back its worldwide managed health services. Health tech solutions allow providers to rapidly and securely access key patient data so as to coordinate patient health and improve population health, and the solutions must be standardized in order to meet both compliance and regulatory requirements.