Financial/Banking

Hoffman Estates, Ill. -- A Detroit court on Wednesday said that Charles Conaway, the former head of Kmart Corp., has agreed to pay $5.5 million to end long-running litigation with government regulators over the retailer's finances nearly 10 years ago.

The deal would stop Conaway's appeal of a court-ordered financial penalty for misleading investors before Kmart's bankruptcy filing in 2002.

The appeals court has agreed to send the case back to federal court in Detroit to handle the settlement.

Bentonville, Ark. -- Wal-Mart Stores announced Wednesday that it has promoted Jeff Davis to the position of senior VP and treasurer, effective Dec. 1.

In his new role, Davis will assume responsibility for treasury operations, capital markets, investor relations and risk management. Davis succeeds Charles Holley, who has been named to the position of executive VP and CFO, also effective Dec. 1.

Chicago -- Exiting what was labeled the biggest real estate bankruptcy in U.S. history, General Growth Properties has emerged from Chapter 11 protection as two separate companies.

The country’s second-largest U.S. mall owner said Wednesday that it has spun off Howard Hughes Corp., an owner of master-planned communities and other properties.

The shares of the newly separate General Growth, as well as the shares of Howard Hughes, will begin trading Thursday on the New York Stock Exchange.

Los Angeles -- Supermarket retailer Arden Group reported Wednesday that the company earned $3.5 million in the quarter ended Oct. 2, compared with net income of $4.7 million in the year-ago period.

The parent of Southern California supermarket chain Gelson's Markets cited economic conditions and competition for the profit decline.

Revenue decreased 3% to $100.3 million. Same-store sales fell 3.3%.