This past week’s news from www.ocbj.com and other sources
TOP STORIES
Some $1.9 billion was pulled from Newport Beach-based Pacific Investment Management Co.’s largest bond fund in November, the first net outflow in two years, according to Chicago-based fund tracker Morningstar Inc. The move suggests investors are willing to take on more risk in stocks, a positive indicator for the economy. Pimco was a major beneficiary after the global financial crisis sent investors to safer, more stable investments such as bonds.
Holiday hiring by retailers fueled an overall gain of 1,600 jobs in Orange County in November from October, but the unemployment rate still rose slightly as more job seekers entered the market. Retail added 2,100 monthly jobs as stores offset losses in other sectors. Even so, the unemployment rate rose to 9.3% from a revised 9.1% in October as more people returned to the job market. Unemployment was 9.6% in November 2009.
REAL ESTATE
A group called Citizens for Sensible Development turned in more than 3,000 signatures to put a referendum on a recently approved housing development on an upcoming ballot in San Juan Capistrano. Developer Advanced Real Estate Services of Lake Forest said a delay until city elections in November 2011 might lead it to back out of its plan for the 94-home Distrito La Novia/San Juan Meadows, which would include 500 horse stables. That would clear the way for other uses of the land and a possible sale. The city could pay about $80,000 for an earlier special election.
A state appeals court in San Jose delayed the sale of 24 state-owned buildings in response to a lawsuit filed by several former officials who claim it’s a bad deal for taxpayers. The buildings include 11 that California First LLC—which includes Irvine-based Spyglass Realty Partners, Houston’s Hines Interests LP and Antarctica Capital LLC of New York—had agreed to buy for $2.3 billion and lease back to the state. A final decision on the deal isn’t likely until early 2011.
TECHNOLOGY
Sue Swenson, one of the county’s most high profile female executives, announced plans to step down as chief executive of Irvine-based Sage Software Inc. Swenson, 62, is set to leave the company, which serves as the North America headquarters of Britain’s Sage Group PLC, in mid-2011. Pascal Houillon, chief executive of Sage’s France operations, is set to take over for Swenson. Sage is undergoing its third shift in top leadership in as many years.
Irvine-based Epicor Software Corp. agreed to buy Denver’s Spectrum Human Resource Systems Corp. for $16 million. Spectrum makes Internet-based software that manages back office tasks. Epicor plans to fold Spectrum into its newly formed “human capital management” group.
HEALTHCARE
Irvine-based Edwards Lifesciences Corp. said it expects to launch its highly touted Sapien replacement heart valve in the U.S. before the end of 2011. Sapien and similar products are inserted via a catheter and don’t require major surgery. They are seen as among the biggest advances in heart valves in years because they could open up the market to more patients who aren’t candidates for open heart surgery. Sapien already is sold in Europe.
Lake Forest-based InSight Health Services Holdings Corp. has filed for bankruptcy reorganization for the second time since 2007. InSight runs medical imaging centers and provides diagnostic services to hospitals and doctors offices. The company filed for a prepackaged reorganization designed to eliminate about $290 million in debt due in 2011. Most of the holders of the company’s bonds have signed off on the deal, according to Insight. InSight had $140 million in assets and $320 million in debt as of Nov. 15. The company’s bondholders are set to own 100% of Insight after the reorganization. The plan also calls for payment of some unsecured creditors. The company seems to be following the same tack as it did in 2007, when Insight filed and quickly emerged from bankruptcy reorganization.
Brea-based benefits manager New Century Health was bought by Chicago private equity firm Water Street Healthcare Partners for an undisclosed amount. New Century Health works with insurance companies, the Medicare and Medicaid programs and employers to manage heart and cancer care benefits. Water Street said New Century’s revenue has risen more than 200% in the past three years to $50 million this year. Water Street spent $50 million for a majority stake in Alpine Biomed Corp., a Fountain Valley medical device maker, in 2007. It sold Alpine last year to Natus Medical Inc. of San Carlos for $43 million.
OTHER NEWS
Canada’s WestJet has applied for permission to operate a daily flight from John Wayne Airport, with the possibility of adding another later. The airline serves 71 cities in the U.S., Canada, Mexico and the Caribbean. It hasn’t named destinations for departures from John Wayne.
