Clause/North Pole Applies for Bailout Money
Thursday, December 25, 2008
by Staff Writer B.O. Sanity
Augusta, Maine (AIP) - Sources close to the banking committee have reported that there was an eleventh-hour request submitted just before congress adjourned for the long Christmas holiday, and many on Wall Street will be running for cover when the market re-opens for a mini-session on Friday. Clause/North Pole (Nasdaq CNPL) is requesting up to 75 billion dollars of the federal bail-out money that has been set aside for troubled businesses. The call is expected to send CNPL into a tailspin when trading opens, but Clause's chief financial advisor recommends moderation, saying that there are already corrective measures on the way that will see the stock returning to pre-December levels by mid-February.
Clause cited competition from new corporations such as Kwanza and renovation of older ones such as Ramadan (which cuts into the December market much earlier in the month) and has asked for protective measures. Clause cited the dependence of American corporations on their product delivery framework, though detractors have noted that CNPL now delivers up to 70% non-American manufactured goods, most notably from China and Indonesia. Rapid downsizing in native workforce has been the trend since the eighties, when CNPL, then the pre-merger North Pole Industries, a private corporation, offered early retirement to any assembly line manufacturers who were 350 years old or older.
Many current manufacturers who use CNPL as a delivery framework are dissatisfied with several strategies that they say are now "outdated," and feel that production and distribution are suffering from a "good/bad" criterion that hampers overall production. Sony and Nintendo have threatened to withdraw from the CNPL delivery system altogether when the current contract expires in 2011 unless CNPL can redefine "good and bad." Walmart has also entered talks, calling on CNPL to be more environment friendly, and calculate green behavior into the "good" mode.
Clause, CEO of the corporation, issued a statement requesting that they be allowed a time of reorganization. Though global warming and ice melting has not yet affected headquarters, Clause requested up to two billion for contingency expenses in the possibility of a need for relocation and recovery of resources. Heavily criticized as not even being an American corporation due to the out of country location, Clause noted that applicable taxes are assessed from the corporations that contract his delivery service, and assured potential investors that, in the unlikely event of a relocation, CNPL would favor US Territory and would negotiate with American labor organizations.
Rumor has it that Target, Inc, attempted a hostile buy-out of 51% of CNPL's stock last July during Clause's executive retreat at Aruba, but the takeover bid was curtailed when Wachovia refused to advance a line of credit to Target for the 350 million dollar shortfall that would be needed for full purchase. Claus's legal team has since privatized 51% of CNPL's outstanding stock, a move which temporarily saw shares rise by as much as fourteen percent in early August, but which has seen twice the decline since.
Clause reported early this morning, returning from the annual delivery cycle, that the outlook actually is good for a short term gain in the first quarter, but there is still talk on Wall Street of cutbacks, and CNPL's employees, who uniquely receive their seasonal bonuses in late January instead of early December, are grumbling about the delayed bonuses which allegedly will not be given until the February numbers are out this year, and are said to be stock shares in the company instead of traditional cash gifts.
There has also been a rumbling over a potential split of the company, and rumors of marital turbulence between Clause and his wife are being downplayed. Ms. Clause owns 20 percent of CNPL's public shares, and it is common knowledge that she has been in extended discussions with Martha Stewart over a possible merger, which, of course, would offset Walmart business with the less viable Kmart name.
CNPL's request for funds will not go without a price. House Banking Committee Chairman Rep Barney Frank (D-NY), said that there would be some governmental control of the North Pole distribution network, and there would need to be concessions by Clause and company regarding procedures. Frank has expressed concern about traditional gay views and possible conflicts with the "good/bad" list.
Critics have said that one reason for artificial perceived growth in CNPL is the possibility of reduced delivery expenses due to an increase in "bad" children in the equation, and many corporations, such as Disney, Sears, and Time-Warner have expressed concern about loss of product, and want to see representatives from their own corporations on the conduct evaluatory board that determines who is good and bad (http://www.naughtyornice.np/). Frank has recommended a congressional committee be added as well, and says that Clause cannot expect any help unless he is willing to make this concession.
CNPL closed Wednesday at 324.23, down 17.21, and down from their all-time high in 1998 of 768.23.