Here’s the plan: An Iberia Parish company told the Iberia Parish Council on Wednesday night that it plans to spend $39 million to build a plant and expand its operations at the Port of Iberia, The Advertiser reports. David Taldo, director of manufacturing and operations at Bayou Cos., a subsidiary of Aegion, said construction may begin as early as September on a 56,000-square-foot pipe-coating facility with a target date for opening in March 2016. The Parish Council has granted Bayou Cos. some $1.5 million in local tax funding assistance, money that is to be used for infrastructure near the new facility, which will be located at Curtis Lane and Port Road, between two structures the company currently occupies. Read the full story.
Upon further review: The U.S. economy posted a much bigger rebound in growth during the spring than previously reported, thanks to improvements in a number of areas, including consumer spending and business investment. As The Associated Press reports, the economy expanded at an annual rate of 3.7% in the April-June quarter, more than a percentage point greater than the 2.3% originally estimated, the Commerce Department announced this morning. That marks the strongest growth since last summer and marked a sharp improvement from the anemic 0.6% advance during the January-March quarter when a harsh winter sapped activity. Read the full story.
Strapped for cash: At a time when the oil price is languishing at its lowest level in six years, Bloomberg reports producers need to find half a trillion dollars to repay debt. Some might not make it. The number of oil and gas company bonds with yields of 10% or more—a sign of distress—has tripled in the past year, leaving 168 firms in North America, Europe and Asia holding this debt, data compiled by Bloomberg show. The ratio of net debt to earnings is the highest in two decades. If oil stays at about $40 a barrel, the shakeout could be profound, according to Kimberley Wood, a partner for oil mergers and acquisitions at Norton Rose Fulbright LLP in London. “The look and shape of the oil industry would likely change over the next five to 10 years as companies emerge from this,” Wood says. “If oil prices stay at these levels, the number of bankruptcies and distress deals will undoubtedly increase.” Read the full story.
