The story behind Tribune's broken deal

At the end of 2007, real estate tycoon Sam Zell took control of Tribune Co. in a deal that promised to re-energize the media conglomerate. But the company struggled under the huge debt burden the deal created, and less than a year later, it filed for bankruptcy.

One of Chicago's most iconic companies — parent to the Chicago Tribune — was propelled into a protracted and in many ways unprecedented odyssey through Chapter 11 reorganization.

On Dec. 31, after four years, Tribune Co. finally emerged from court protection under new ownership, but at a heavy cost. The company's value was diminished, its reputation was tarnished and its ability to respond to market opportunities during its long bankruptcy was constrained.

Tribune Co.'s bankruptcy saga began as an era of superheated Wall Street deal-making fueled by cheap money was coming to an end. The company's tale is emblematic of the American financial crisis itself, in which a seemingly insatiable appetite for speculative risk using exotic investment instruments helped trigger an economic collapse of historic proportions.

Tribune reporters Michael Oneal and Steve Mills, in a four-part series that begins today, tell the story of Tribune Co.'s journey into and through bankruptcy, throwing a spotlight on the key decisions and missed opportunities that marked a perilous time in the history of the company, the media industry and the economy.

Read the full story, "Part one: Zell's big gamble," as a digitalPLUS member.
To view videos and photos and for a look at the rest of the series visit, chicagotribune.com/brokendeal.

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Couple fighting South Korea to keep 7-month-old girl

Jinshil and Christopher Duquet were in the process of adopting a baby from South Korea when complications arose with the Korean government. (Abel Uribe, Chicago Tribune)

By Lisa Black and Bonnie Miller Rubin




Tribune reporters

7:27 a.m. CST, January 11, 2013

An Evanston family will appear in federal court today as they try to keep a South Korean baby they adopted in June from being returned to her home country.

Sehwa Kim, now 7 months old, has spent most of her life with Jinshil and Christopher Duquet, who say they were misled by a Korean lawyer who provided them with bad information and documents for what they believed to be a legal private adoption.

Korean officials accuse the family of criminal action, saying they didn’t follow the country’s procedures for adoption, and question funds the family gave on behalf of the child to a shelter and the child’s birth mother.

The family believes their case is being used as a political pawn in what is really Korea’s objection to all U.S. adoptions.
After hearings this week in which the family tried to prove they are the legal guardians, a Cook County Circuit Court judge declared that they didn’t have standing.  A federal judge today may order the child removed from the family’s custody. 

The birth mother’s intention to put her baby up for adoption is not in dispute. She and the baby’s grandparents signed papers agreeing to renounce their parental rights so that the child could be adopted by the Duquets.

The number of international adoptions in South Korea and elsewhere has plummeted after years of growth. According to State Department data, almost 23,000 Americans in 2004 looked to other countries to build their families. By 2011, the figure had dwindled to 9,300 adoptions.

Read more about the family's struggle HERE.

lblack@tribune.com
brubin@tribune.com

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Holiday PC sales dip for first time in five years

LAS VEGAS (Reuters) - Holiday-season sales of personal computers fell for the first time in more than five years, according to tech industry tracker IDC, as Microsoft Corp's new Windows 8 operating system failed to excite buyers and many instead opted for tablet devices and smartphones.

The slump caps a miserable year for PC makers such as Hewlett-Packard Co, Lenovo Group and Dell Inc, which saw the first annual decline for more than a decade with no immediate signs of relief.

It underscores an unspectacular launch for the latest version of the Windows franchise, which Microsoft is banking on to fight off incursions into the PC arena by touch-friendly devices such as Apple Inc's iPad.

"The sense is that until Windows 8 is fully installed and prices start to come down, we will be in this state of negative dynamics in the PC market," said Aaron Rakers, an analyst at Stifel, Nicolaus & Co.

Still, analysts warn against counting out Windows 8 -- the most radical change in the operating system in 20 years -- as consumers grow more comfortable with its tile-based interface and touch features.

In the past, a new operating system from Microsoft tended to stimulate a spurt of PC sales, but PC makers simply did not get enough attractive machines into the market, said IDC.

"Lost in the shuffle to promote a touch-centric PC, vendors have not forcefully stressed other features that promote a more secure, reliable and efficient user experience," said Jay Chou, senior research analyst at IDC.

This year could be better, he suggested, even in the face of talk about the death of the PC as tablets are on track to outsell full-featured machines for the first time in the United States.

"As Windows 8 matures, and other corresponding variables such as Ultrabook pricing continue to drop, hopefully the PC market can see a reset in both messaging and demand in 2013," said Chou.

PC makers sold 89.8 million units worldwide in the fourth quarter of last year, down 6.4 percent from the same quarter of 2011. That was slightly worse than expected by most, and the worst performance for more than five years, when the global economy shuddered to a halt and ushered in the worst recession since World War II.

For all of 2012, 352 million PCs were sold, down 3.2 percent from 2011. That was the first annual decline since 2001, according to IDC, in the wake of the tech stock crash and the September 11 attacks.

IDC is forecasting a meager 2.8 percent growth in PC sales for 2013.

"There's a lack of compelling reasons to upgrade," said Ashok Kumar, an analyst At Maxim Group, who said people are now waiting up to 10 years to replace computers rather than five in the past.

"Increases in performance have been smaller and there are fewer new applications that require more computing horsepower," he said. "In developing markets, the first purchase is not a PC, it's a smartphone, especially in markets where literacy levels are low."

NO MIRACLES AT CES

The numbers are bad news for Microsoft, which still provides the underlying software for nine out of 10 PCs but is suffering as Apple's iPad and other tablets eat away at the cheap end of the PC market.

Touch-friendly Windows 8 and Microsoft's own Surface tablet were designed to counter that shift, but the radical new-look software has not gripped consumers' imaginations.

"Windows 8 wasn't going to be as big a catalyst," said Shaw Wu, analyst at Sterne Agee. "It's so different, it's almost uncomfortably different from past Windows, and there's a risk that Windows 8 ends up like Vista."

Windows Vista, released worldwide in 2007, was Microsoft's least popular operating system with users in recent years.

Microsoft pulled out of the Consumer Electronics Show in Las Vegas this year, vacating its usual sprawling display area, but PC makers such as Asustek, LG Electronics and Samsung Electronics filled the gap with a dizzying array of big screen computers, lightweight laptops, tablets and combinations of those, all running Windows 8.

Many of the new models attracted jostling crowds on the show floor, like Panasonic Corp's 20-inch ultra-high-definition tablet and Razer's dedicated Edge tablet for PC gamers.

But none was hailed a show-stopper that might single-handedly turn around the fortunes of Windows.

"No single device will spur sales, it will take time for consumers to learn that Windows 8 even exists. CES will do little to change that," said Sarah Rotman Epps, an analyst for tech research firm Forrester. "Windows 8 is going to be a slow ramp, regardless of hardware quality."

Microsoft says it feels good about the progress of Windows 8, as sales hit 60 million this week after 10 weeks on the market. That is in line with Windows 7 three years ago, and well ahead of Vista, which took 100 days to reach 40 million sales.

Tami Reller, chief financial officer of Microsoft's Windows unit, said sales of Windows 8 PCs may have been held back by shortages of the most popular touch-screen machines.

"The level of demand I think surprised a lot of people. And frankly, the supply was too short," said Reller at an analyst presentation at CES this week.

Microsoft is looking to juice that demand further this month with its new Surface with Windows 8 Pro, a tablet running an Intel processor that is fully compatible with Office and traditional PC programs, unlike the first Surface it launched last year based on an ARM Holdings-designed chip.

Despite that bullishness, analysts have been edging down their earnings expectations for Microsoft lately.

"Win 8 is disappointing, the PC market will remain weak for awhile and margins are likely capped," said Morgan Stanley analyst Adam Holt on Thursday, as he downgraded the stock to 'equal-weight' from 'overweight'.

Investors are also nonplussed, driving Microsoft's shares down neraly 20 percent since last March, even as the Standard & Poor's 500 has marched upward to a five-year high this week. The shares are down 6 percent since the launch of Windows 8 on October 26.

(Additional reporting by Poornima Gupta, Miyoung Kim, Timothy Kelly, Sinead Carew and Noel Randewich in Las Vegas, and Alistair Barr and Alexei Oreskovic in San Francisco.; Editing by Gary Hill and Steve Orlofsky)

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Browns name Rob Chudzinski new coach

CLEVELAND (AP) — The Browns hauled their coaching search to Arizona and back. They talked to high-profile college coaches, NFL assistants and a fired pro coach who took a team to a Super Bowl.

None of them was hired.

Instead, Rob Chudzinski became their pick.

With no experience as a head coach at any level, Chudzinski was hired Thursday night by the Cleveland Browns, the team he cheered for as a kid. This is Chudzinski's third stint with the team, but this time around he's the guy in charge.

Chudzinski, who spent the past two seasons calling plays as Carolina's offensive coordinator, is the Browns' sixth full-time coach since 1999 and 14th in team history.

Just as it appeared the Browns might be going in another direction, the team selected the 44-year-old Chudzinski to revive a team that has made the playoffs just once in the past 14 years.

Chudzinski will be introduced Friday at an 11 a.m. news conference, where owner Jimmy Haslam and CEO Joe Banner likely will be asked how they selected Banner after speaking to at least seven other candidates and flirting with Chip Kelly before he returned to Oregon.

"Chud," as he's known to players and friends, Chudzinski worked as the Browns' tight ends coach in 2004 and was their offensive coordinator in 2007, when the team won 10 games — their most since an expansion rebirth in 1999.

A lifelong Browns fan who grew up in Toledo, Ohio, Chudzinski replaces Pat Shurmur, another first-time coach when he was hired, who was fired on Dec. 31 after a 5-11 season. For the past two years, Chudzinski has worked with talented Panthers quarterback Cam Newton and resuscitated Carolina's offense, which was one of the league's worst before he arrived.

When Haslam and Banner embarked on their coaching search as 2013 began, the pair vowed they would wait as long as necessary to find "the right coach" for Cleveland. They promised to give their new coach final say over the roster and planned to pair him with an executive to help pick players.

Chudzinski wasn't seen by many as an option.

And then he became the choice.

Chudzinski interviewed with the team on Wednesday, when the club also visited with Cincinnati defensive coordinator Mike Zimmer. Chudzinski appeared to be a long shot for the job, not because he wasn't qualified, but because it was thought Haslam wanted to make a big splash with his first coaching hire.

However, Chudzinski wowed Haslam and Banner during his meeting and the team decided it was time to end its search in its second week.

It's not yet known whom Chudzinski will bring in as coordinators. There are reports he may hire former San Diego coach Norv Turner to run his offense. Chudzinski worked for Turner with the Chargers.

In his first season in Carolina, Chudzinski turned Newton, the No. 1 overall draft pick, loose and the Panthers set club records for total yards (6,237) and first downs (345). Carolina also scored 48 touchdowns after getting just 17 in the season before Chudzinski arrived. The Panthers jumped from last in the league in total yardage to seventh, the biggest improvement since 1999.

Following the season, Chudzinski interviewed for head coaching jobs with St. Louis, Jacksonville and Tampa Bay before returning to Carolina.

In getting the Browns' job, Chudzinski was picked over Zimmer, Montreal Alouettes coach Marc Trestman, fired Arizona coach Ken Whisenhunt and Cardinals defensive coordinator Ray Horton. Whisenhunt was in Cleveland for a second interview on Thursday, and appeared to be the front-runner. The Browns also were expected to interview Indianapolis offensive coordinator Bruce Arians.

Newton continued to develop in his second season with Chudzinski, and the QB's development may have helped his case since the Browns are hoping Brandon Weeden will improve this year after his uneven rookie season.

After his first stint on Cleveland's staff, Chudzinski spent two seasons as San Diego's tight ends coach, working with perennial Pro Bowl standout Antonio Gates.

Taking over the Browns' offense in 2007, Chudzinski helped the Browns go 10-6. They barely missed the playoffs, but four players, including quarterback Derek Anderson, made the Pro Bowl. However, in 2008, the Browns struggled on offense and a six-game losing streak led to a 4-12 finish and Romeo Crennel's firing.

Chudzinski's hiring may not be popular with Cleveland fans, many of whom at fantasies about Nick Saban or Jon Gruden or Kelly brining his supersonic offense to the NFL.

But his selection is in keeping with at least one of Banner's past moves. When he was in Philadelphia's front office, Banner went outside the box and hired Green Bay assistant Andy Reid, a relative unknown who spent 14 seasons with the Eagles.

Now that they've got their coach, the Browns can focus on finding a GM to replace Tom Heckert, fired after three seasons.

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Online: http://pro32.ap.org/poll and http://twitter.com/AP_NFL

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‘Argo,’ ‘Silver Linings Playbook’ win at Critics Choice

(Reuters) – Ben Affleck’s Iran hostage drama “Argo,” “Lincoln” star Daniel Day-Lewis and “Zero Dark Thirty”‘s Jessica Chastain were among big winners at the Critics Choice Movie Awards on Thursday, taking honors for best picture, actor and actress, with Affleck nabbing the prize for best director.

The all-star “Silver Linings Playbook” swept the comedy awards, winning best comedy film, best comedy actor for Bradley Cooper and best comedy actress, which went to Jennifer Lawrence.

The 250-member Broadcast Film Critics Association, the largest film critics organization in the United States and Canada, also gave the film its best acting ensemble prize at the event in Santa Monica, California.

Affleck, known mostly as actor and who was overlooked for directing “Argo” earlier on Thursday when the Academy Award nominations were announced, began his acceptance with the quip: “I would like to thank the academy,” before adding “I’m kidding. This is the one that counts.”

Day-Lewis won for his acclaimed performance in the title role of Steven Spielberg’s historical drama “Lincoln,” while Chastain took the prize for “Zero Dark Thirty,” about the hunt for Osama Bin Laden.

It was one of only two awards for “Lincoln,” which led the Oscar nominations with 12. The Oscar runner-up, “Life of Pi,” won only two technical awards.

Lawrence took home two awards, also winning best actress in an action movie for “The Hunger Games.”

“Critics aren’t so bad,” she said as she accepted the award, later riffing on the line when she won her second award, for “Silver Linings Playbook,” saying “Seriously, I love critics.”

Many stars who were nominated just hours earlier for Oscars, Hollywood’s top honors, were on hand, including “Les Miserables” star Hugh Jackman, Robert De Niro and Anne Hathaway, who won the award for best supporting actress for “Les Miserables.”

Best supporting actor went to Philip Seymour Hoffman for “The Master.”

Director David O. Russell dedicated the “Silver Linings” award to his son, saying “I made it to give him hope,” adding, “That’s my silver lining.”

European director Michael Haneke’s drama “Amour,” about an aging couple struggling with failing health and mortality and which scored several major Oscar nominations on Thursday, won the award for best foreign language film.

The prize for best sci-fi/horror film went to “Looper,” while “Searching for Sugarman” won best documentary.

The screenwriting awards were won by Quentin Tarantino for his original screenplay for “Django Unchained” and Tony Kushner who adapted the screenplay for “Lincoln.”

British singer Adele’s song “Skyfall” from the James Bond film of the same name won best song, and star Daniel Craig was named best actor in a action film. The film also won best action movie.

Nine-year old Quvenzhane Wallis, star of “Beasts of the Southern Wild” who became the youngest best actress Oscar nominee in history on Thursday, was named best young actor or actress. She accepted her award clutching a pink-cased electronic device, from which she read her speech as she grinned broadly.

The awards were handed out ahead of Sunday’s Golden Globes and a slew of other award shows that narrow the field for the Oscars, which will be held on February 24.

Writer-producer-director Judd Apatow received a special “genius” award created to honor “an unprecedented demonstration of excellence in the cinematic arts.”

(Reporting by Chris Michaud; Editing by Eric Walsh)

Movies News Headlines – Yahoo! News

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Flu season strikes early and, in some places, hard

NEW YORK (AP) — From the Rocky Mountains to New England, hospitals are swamped with people with flu symptoms. Some medical centers are turning away visitors or making them wear face masks, and one Pennsylvania hospital set up a tent outside its ER to deal with the feverish patients.

Flu season in the U.S. has struck early and, in many places, hard.

While flu normally doesn't blanket the country until late January or February, it is already widespread in more than 40 states, with about 30 of them reporting some major hot spots. On Thursday, health officials blamed the flu for the deaths of 20 children so far.

Whether this will be considered a bad season by the time it has run its course in the spring remains to be seen.

"Those of us with gray hair have seen worse," said Dr. William Schaffner, a flu expert at Vanderbilt University in Nashville.

The evidence so far points to a moderate season, Schaffner and others say. It looks bad in part because last year was unusually mild and because the main strain of influenza circulating this year tends to make people sicker and really lay them low.

David Smythe of New York City saw it happen to his 50-year-old girlfriend, who has been knocked out for about two weeks. "She's been in bed. She can't even get up," he said.

Also, the flu's early arrival coincided with spikes in a variety of other viruses, including a childhood malady that mimics flu and a new norovirus that causes vomiting and diarrhea, or what is commonly known as "stomach flu." So what people are calling the flu may, in fact, be something else.

"There may be more of an overlap than we normally see," said Dr. Joseph Bresee, who tracks the flu for the Centers for Disease Control and Prevention.

Most people don't undergo lab tests to confirm flu, and the symptoms are so similar that it can be hard to distinguish flu from other viruses, or even a cold. Over the holidays, 250 people were sickened at a Mormon missionary training center in Utah, but the culprit turned out to be a norovirus, not the flu.

Flu is a major contributor, though, to what's going on.

"I'd say 75 percent," said Dr. Dan Surdam, head of the emergency department at Cheyenne Regional Medical Center, Wyoming's largest hospital. The 17-bed emergency room saw its busiest day ever last week, with 166 visitors.

The early onslaught has resulted in a spike in hospitalizations. To deal with the influx and protect other patients from getting sick, hospitals are restricting visits from children, requiring family members to wear masks and banning anyone with flu symptoms from maternity wards.

One hospital in Allentown, Pa., set up a tent this week for a steady stream of patients with flu symptoms. But so far "what we're seeing is a typical flu season," said Terry Burger, director of infection control and prevention for the hospital, Lehigh Valley Hospital-Cedar Crest.

On Wednesday, Boston declared a public health emergency, with the city's hospitals counting about 1,500 emergency room visits since December by people with flu-like symptoms.

All the flu activity has led some to question whether this year's flu shot is working. While health officials are still analyzing the vaccine, early indications are that it's about 60 percent effective, which is in line with what's been seen in other years.

The vaccine is reformulated each year, based on experts' best guess of which strains of the virus will predominate. This year's vaccine is well-matched to what's going around. The government estimates that between a third and half of Americans have gotten the vaccine.

In New York City, 57-year-old Judith Quinones skipped getting a flu shot this season and suffered her worst case of flu-like illness in years. She was laid up for nearly a month with fever and body aches. "I just couldn't function," she said.

But her daughter got the vaccine. "And she got sick twice," Quinones said.

Europe is also suffering an early flu season, though a milder strain predominates there. Flu reports are up, too, in China, Japan, the West Bank, the Gaza Strip, Algeria and the Republic of Congo. Britain has seen a surge in cases of norovirus.

On average, about 24,000 Americans die each flu season, according to the CDC. That's an estimate — the agency does not keep a running tally of adult flu deaths each year, only for children. Some state health departments do keep count, and they've reported dozens of flu deaths so far.

Flu usually peaks in midwinter. Symptoms can include fever, cough, runny nose, head and body aches and fatigue. Some people also suffer vomiting and diarrhea, and some develop pneumonia or other severe complications.

Most people with flu have a mild illness and can help themselves and protect others by staying home and resting. But people with severe symptoms should see a doctor. They may be given antiviral drugs or other medications to ease symptoms.

Flu vaccinations are recommended for everyone 6 months or older. Of the 20 children killed by the flu this season, only two were fully vaccinated.

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AP Medical Writer Maria Cheng in London contributed to this report.

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Online:

CDC flu: http://www.cdc.gov/flu/index.htm

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Biden seeks video game industry input on guns

WASHINGTON (AP) — Looking for broader remedies to gun violence, Vice President Joe Biden is reaching out to the video game industry for ideas as the White House seeks to assemble proposals in response to last month's massacre at a Connecticut elementary school.

Biden is scheduled to meet with video game representatives Friday as the White House explores cultural factors that may contribute to violent behavior.

The vice president, who is leading a task force that will present recommendations to President Barack Obama on Tuesday, met with other representatives from the entertainment industry, including Comcast Corp. and the Motion Picture Association of America, on Thursday.

Friday's meeting comes a day after the National Rifle Association rejected Obama administration proposals to limit high-capacity ammunition magazines and dug in on its opposition to an assault weapons ban, which Obama has previously said he will propose to Congress. The NRA was one of the pro-gun rights groups that met with Biden during the day.

NRA president David Keene, asked Friday if the NRA has enough support in Congress to fend off legislation to ban sales of assault weapons, indicated it does. "I do not think that there's going to be a ban on so-called assault weapons passed by the Congress," he said on NBC's "Today."

In previewing the meeting with the video game industry, Biden recalled how the late Sen. Daniel Patrick Moynihan of New York lamented during crime bill negotiations in the 1980s that the country was "defining deviancy down."

It's unclear what, if anything, the administration is prepared to recommend on how to address the depiction of violence in the media.

White House press secretary Jay Carney last month suggested that not all measures require government intervention.

"It is certainly the case that we in Washington have the potential, anyway, to help elevate issues that are of concern, elevate issues that contribute to the scourge of gun violence in this country, and that has been the case in the past, and it certainly could be in the future," Carney said then.

In a statement, a half dozen entertainment groups, including the Motion Picture Association of America, said they "look forward to doing our part to seek meaningful solutions."

On gun control, however, the Obama administration is assembling proposals to curb gun violence that would include a ban on sales of assault weapons, limits on high-capacity ammunition magazines and universal background checks for gun buyers.

"The vice president made it clear, made it explicitly clear, that the president had already made up his mind on those issues," Keene said after the meeting. "We made it clear that we disagree with them."

Opposition from the well-funded and politically powerful NRA underscores the challenges that await the White House if it seeks congressional approval for limiting guns and ammunition. Obama can use his executive powers to act alone on some gun measures, but his options on the proposals opposed by the NRA are limited without Congress' cooperation.

Obama has pushed reducing gun violence to the top of his domestic agenda following last month's mass shooting at an elementary school in Newtown, Conn., where a gunman slaughtered 20 children and six adults before killing himself. The president put Biden in charge of an administration task force and set a late January deadline for proposals.

"I committed to him I'd have these recommendations to him by Tuesday," Biden said Thursday, during a separate White House meeting with sportsmen and wildlife groups. "It doesn't mean it's the end of the discussion, but the public wants us to act."

The vice president later met privately with the NRA and other gun-owner groups for more than 90 minutes. Participants in the meeting described it as an open and frank discussion, but one that yielded little movement from either side on long-held positions.

Keene told NBC there is a fundamental disagreement over what would actually make a difference in curbing gun violence.

Richard Feldman, the president of the Independent Firearm Owners Association, said all were in agreement on a need to keep guns out of the hands of criminals and the mentally ill. But when the conversation turned to broad restrictions on high-capacity magazines and assault weapons, Feldman said Biden suggested the president had already made up his mind to seek a ban.

"Is there wiggle room and give?" Feldman said. "I don't know."

White House officials said the vice president didn't expect to win over the NRA and other gun groups on those key issues. But the administration was hoping to soften their opposition in order to rally support from pro-gun lawmakers on Capitol Hill.

Biden's proposals are also expected to include recommendations to address mental health care and violence on television, in movies and video games. Those issues have wide support from gun-rights groups and pro-gun lawmakers.

As the meetings took place in Washington, a student was shot and wounded at a rural California high school and another student was taken into custody.

During his meeting with sporting and wildlife groups, Biden said that while no recommendations would eliminate all future shootings, "there has got to be some common ground, to not solve every problem but diminish the probability that our children are at risk in their schools and diminish the probability that firearms will be used in violent behavior in our society."

Several Cabinet members have also taken on an active role in Biden's gun violence task force, including Attorney General Eric Holder. He met Thursday with Wal-Mart, the nation's largest firearms seller, along with other retailers such as Bass Pro Shops and Dick's Sporting Goods.

The president hopes to announce his administration's next steps to tackle gun violence shortly after he is sworn in for a second term. He has pledged to push for new measures in his State of the Union address.

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Follow Julie Pace at http://twitter.com/jpaceDC

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U.S. to review Boeing 787 amid more mishaps

Boeing Co.'s 787 Dreamliner jet suffered a cracked cockpit window and an oil leak on separate flights in Japan on Friday -- the latest in a series of incidents testing confidence in the sophisticated new aircraft.

All Nippon Airways Co said a domestic flight from Tokyo landed safely at Matsuyama airport in western Japan after a crack developed on the cockpit windscreen, and the plane's return to Tokyo was cancelled.

The same airline later said oil was found leaking from an engine of a 787 Dreamliner after the plane landed at Miyazaki airport in southern Japan. An airline spokeswoman said it later returned to Tokyo after some delay. No one was injured in either incident.

The world's first carbon-composite airliner, which has a list price of $207 million, has been beset by problems this week. Some analysts say these are normal teething issues as a new plane enters service under close scrutiny. Others say the incidents could erode public confidence in the aircraft.

The 787 Dreamliner will undergo a comprehensive review of its critical systems by regulators, the U.S. Department of Transportation said Friday.

The review of the jet will include design, manufacture and assembly, after a series of problems in recent weeks, including a battery that caught fire on an empty 787 parked in Boston on Monday.

The agency said it plans to announce more details at a press conference Friday at 9:30 am ET.

U.S. regulators have raised questions about the plane's reliability on long transocean routes, the Wall Street Journal reported.

The 787 Dreamliner made its first commercial flight in late-2011, after a series of production delays put deliveries more than three years behind schedule. By the end of last year, Boeing had sold 848 Dreamliners, and delivered 49.

Earlier this week, a battery fire caused damage to an empty 787 jet operated by Japan Airlines while it was on the ground at Boston airport. The next day, another JAL 787 spilled 40 gallons of fuel onto the taxiway at the same airport after a problem that caused a valve to open, forcing the plane to delay its departure. On Wednesday, ANA cancelled a domestic Dreamliner flight due to a brake-control computer glitch.

Boeing's top Dreamliner engineer, Mike Sinnett, was rolled out midweek to defend the 787, saying the plane's problem rates were no higher than with Boeing's successful 777 jet.

SPIDER WEB CRACK/

ANA said crew noticed a spider web-like crack in a window in front of the pilot's seat about 70 minutes into Friday's flight, which was close to its destination.

"Cracks appear a few times every year in other planes. We don't see this as a sign of a fundamental problem" with Boeing aircraft, a spokesman for the airline said.

On the later flight, the ANA spokeswoman said she could not specify how much oil leaked from the engine. Later on Friday, ANA - which, with JAL flies 24 of the 49 Dreamliners delivered to end-December - launched its maiden service between Tokyo's Narita Airport and San Jose, California with the Dreamliner.

Jun Akiyama, a plane enthusiast who was taking photos at the airport ahead of the San Jose departure, said: "It's worrying. If there was a major accident lives would be at stake, and these defects are only increasing fears."

But Yasushi Uesaka, a systems engineer from Osaka who was also taking pictures nearby, played down the incidents. "When new things come out, there will naturally be defects. That a lot of these defects didn't occur during flight means they're not too critical, I think."

In India - where state-owned Air India has taken delivery of six Dreamliner jets and has more on order - a senior official at the aviation regulator said there was concern at the recent spate of Dreamliner glitches. The Directorate General of Civil Aviation has not ordered any Dreamliner checks for now, but is waiting for a safety report from the U.S. National Transportation Safety Board, the official said.

Air India spokesman K. Swaminathan said the airline's debut Dreamliner flight to Paris on Thursday went without a hitch.

FUEL SAVINGS

One of Boeing's chief innovations with the 787 is its use of electrical power to run on-board functions such as hydraulics and air conditioning, instead of relying on heavier pneumatic systems used on other planes. The weight savings make the 787 more fuel efficient, a big advantage for airlines battling high jet fuel costs.

To power the electrical system, the 787 uses generators attached to the plane's engines, which produce about 1.5 megawatts of power, enough to power about 300 hot water heaters. The system uses high-voltage distribution panels and powerful batteries, such as the one that caught fire in Boston on Monday.

Makoto Yoda, president of Japanese battery maker GS Yuasa Corp, which makes the Dreamliner batteries, said his company was looking into Monday's fire, and was sending a team of engineers to cooperate with the U.S. investigation.

 

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Poisoned lottery winner's in-law had troubles with IRS

The father-in-law of Urooj Khan — the million-dollar lottery winner who died of cyanide poisoning weeks later — allegedly owed more than $120,000 in back taxes, a debt that led the Internal Revenue Service to place liens on Khan's Far North Side house almost two years ago, according to records obtained by the Tribune.

Khan's father-in-law, Fareedun Ansari, was living at Khan's residence with his daughter and son-in-law when Khan was fatally stricken, according to Ansari's criminal defense attorney. The Cook County medical examiner's office initially found that Khan died of natural causes, but after a relative raised concerns, extensive toxicological tests showed he died of lethal levels of cyanide. Police and prosecutors are investigating his death as a homicide.

The IRS filed liens against Khan's West Rogers Park residence in February and March 2011 as part of an effort to collect $124,000 from Ansari in allegedly unpaid taxes related to a small business, records from the Cook County recorder of deeds show.

James Pittacora, who represents Ansari, said his client had operated a business in New Jersey that Khan had financed but that Ansari had since returned to Chicago. He said the two were "very close."

"They had a very good relationship, and he and his daughter are devastated" by Khan's death, Pittacora said.

Pittacora said detectives called Ansari shortly before Christmas asking to speak with him about the death but have yet to interview him.

Ansari's daughter, Shabana, who is Khan's widow, also has hired a criminal defense lawyer, who told the Tribune on Tuesday that she had been questioned for more than four hours by detectives and had fully cooperated.

The mystery surrounding Khan's death sparked international media interest after the Tribune first reported on the investigation in a front-page story earlier this week.

While a motive has not been determined, Chicago police have not ruled out that Khan was killed because of his lottery win, a law enforcement source has told the Tribune. He died before he could collect the winnings in a lump-sum payment — about $425,000 after taxes.

Authorities on Wednesday moved toward exhuming Khan's body in order to perform an autopsy and learn more about how he died. Cook County prosecutors are drafting court papers and expect a judge to hear the matter Friday at the Daley Center courthouse, said Sally Daly, a spokeswoman for the state's attorney's office.

The exhumation could take place as soon as next week, according to sources familiar with the process.

On Wednesday, Khan's sister and her husband spoke out for the first time to the Tribune about the pain they have been quietly enduring since learning weeks ago the shocking revelation that Khan was fatally poisoned.

"There is a way to go, a natural way," said his brother-in-law, Mohammed Zaman, 46. "We are born, we die. Not homicide. I don't want to see him a victim."

Zaman and his wife, Khan's sister, Meraj Khan, won custody of Khan's 17-year-old daughter from his first marriage as part of a court case involving Khan's estate. A probate court judge in that case has ordered that the lottery winnings be held by a bank until it is decided how the money should be divided among Khan's heirs.

Khan's wife has been approved as the administrator of the estate, which in initial estimates was pegged at just over $2 million, including the lottery winnings, according to probate court records.

In the interview in the family's North Side home, Meraj Khan and her husband recalled her brother as a generous, kind man who loved to host parties for his extended Chicago family. Zaman said Khan donated to an orphanage in his native India and even offered one of his Chicago condos to a stranger who needed a place to stay while looking for a job.

Khan would often arrive at birthday parties for youngsters in the family and pretend to have forgotten gifts, only to retrieve bags filled with presents for everyone after the cake was cut.

Zaman said that before his death, Khan had asked to host the Bismillah, a Muslim religious ceremony to mark a child's introduction to Islam, for the couple's 6-year-old son.

Meraj Khan said her brother would often pop over to her home — just blocks from one of his three dry cleaning businesses — unannounced and with coffee for them to share.

Khan had devoted much of his life to running his businesses, including rental properties on the city's North Side. But he also found time to play cricket at Warren Park and was passionate — and fiercely competitive — about playing table tennis, they said.

The couple also said Khan was healthy before he died and was happy even before winning the lottery.

Tribune reporters Jeremy Gorner and Matthew Walberg contributed.

jmeisner@tribune.com

asweeney@tribune.com

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Lenovo entering 'PC plus' era, CEO says

LAS VEGAS (Reuters) - China's Lenovo Group Ltd, on track to become the world's No.1 personal computer maker, is leveraging on what it calls the "PC plus" era as the company ramps up its plant capacity in major markets including the United States.

PC demand growth has waned over the past year as more consumers flock to ultraportable and increasingly powerful tablets and smartphones for basic computing. Hewlett Packard (HP), Dell and other stalwarts of the PC industry are now fighting to sustain growth as tablet computers eat into their PC-related businesses.

But PCs aren't disappearing anytime soon.

"We don't live in a post-PC world," Lenovo Chief Executive Yuanqing Yang said in an interview in Las Vegas on Wednesday. "We are entering the PC plus era."

Yang said it is a post-PC world for one group: companies that do not innovate in PCs.

"In our industry many players think PCs have become a commodity product," he said. "We have never thought this way."

Lenovo, he said, has redefined the category with products like Yoga, a laptop running Microsoft Corp's Windows 8 that can be converted to a tablet PC by flipping the screen all the way backwards, and Twist, another laptop that has a screen connected through a hinge.

The two laptops have had brisk sales in the United States with Lenovo capturing 40 percent consumer market share in the $900 and above category.

MARKET SHARE

Lenovo vaulted into the PC market by buying IBM's personal computer division in 2005. It has become a force through aggressive pricing, overseas acquisitions and taking advantage of a fast-growing home market.

Lenovo is lagging HP in PC shipments in the third quarter by less than half a percentage point, according to IDC, a consultancy. IDC placed HP at the No.1 spot with a 15.9 percent market share, marginally ahead of Lenovo's 15.7 percent share.

But Gartner, a rival to IDC, said Lenovo held the lead, with a 15.7 percent market share in the third quarter of 2012 compared to HP's 15.5 percent.

A year earlier, HP held a 17 percent market share while Lenovo held 13.1 percent, Gartner said. In the third quarter of 2010, Lenovo ranked fourth with 10.4 percent, trailing HP with 17.5 percent, Acer with 13.1 percent, and Dell with 12.2 percent.

"Now we are nurturing new areas including smartphones and tablets," Yang said. "We have focused on this change for many years. We have prepared for this trend."

DIVERSE WORKFORCE

One of the secrets of Lenovo's success, apart from its strategy, is its diverse workforce, Yang said. Its nine-person executive team represents six countries, he said.

The company wants a manufacturing footprint to match, with plans to increase the number of plants in most of its major markets. It is building a plant in the U.S.

It also plans to add more local products and local research and development.

"We want to be a global-local company," Yang said.

Last year, Lenovo bought Brazilian electronics maker CCE, and U.S. cloud computing firm Stoneware.

Lenovo, which is making a concerted global push into tablets and ultrabooks, does not expect to launch a smartphone in the U.S. until it has more U.S. brand recognition, said Gerry Smith, head of North American business for Lenovo.

The lucrative U.S. phone market is dominated by Apple Inc and Google Inc gadgets.

Lenovo launched a number of smartphone models, including the S890 with a 5-inch screen, at the Consumer Electronics show, for distribution in various markets.

In its biggest market by revenue, China, it has 15 percent of smartphone sales, according to Gartner.

(Reporting by Poornima Gupta and Bill Rigby; Editing by Ryan Woo)

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