Corpus Christi Caller-Times from Corpus Christi, Texas (2024)

August 29, 1991

Publication:

Corpus Christi Caller-Timesi

Location:

Corpus Christi, Texas

Issue Date:

Thursday, August 29, 1991

Page:

59

Extracted Article Text (OCR)

0 Stock ListingsF2 tlk) Ab) 11 The Dow 2907 Oose: 305523 on ComicsF6 USINESS Corpus Mei Claw-Times bolds Id INI blitilins Pia Mg Wimp Thursday August 29 1991 1 Judge to rule on Greyhound case lof Attorneys conclude presentation in marathon Chapter 11 reorganization Business in Brief Automotive could seek in litigation to the $3125 million in the reorganization plan "Greyhound and crediton are waiving this ($3125 million) as a discharge of claims and the market thinks there is a discharge because there's a cap" he said My clients represent more than 5000 individuals who had their rights violated and are owed back pay They are owed just as much as a creditor who has a portfolio portfolio Attorneys for the company the union creditors and the government spent the majority of the two days arguing over whether Greyhound's reorganization plan with a 0125 million cap on excess claims limits the liability the company could face if another judge rules the company engaged in unfair labor practices later on By Jane Mat STAFF WRITER MS Bankruptcy Judge Richard Schmidt Wednesday sent creditors and attorneys home without a ruling on a $600 million bankruptcy plan submitted by Greyhound Lines Inc the nation's largest inter-city bus fine whose nearly 6000 drivers are on strike Schmidt who has presided over bankruptcy proceedings since the Dallas-hued bus company filed for protection under Chapter 11 bankruptcy laws in June 1990 said he is not certain whether thinking about the case will help him with his decision "We've been living with this for so long I prefer to sleep on it tonight and probably announce a ruling orally later this week" he said at the conclusion of a two-day confirmation hearing in Corpus Christi The NLRB has filed an unfair labor being treated the same as other unsecured creditors" said Peter Shinevar a Washington DC-based lawyer for Amalgamated Transit Union the umbrella organization representing the drivers The NLRB has asked an administrative law court in Milwaukee for a $142 million judgement on its unfair labor practices claim against Greyhound Greyhound's 6300 drivers went on strike March 1990 three months before Greyhound filed for bankruptcy protection The company and its subsidiaries have hired replacement drivers and trimmed service to 5 percent stops Schmidt capped the excess claim to $3125 million because the NLRB had not yet won the $142 million judgement it sought Shinevar argued that the plan as Greyhound has written it would effectively limit the amount of damages drivers New road for Cadillac DETROIT Cadillac introduced new Seville and Eldorado models Wednesday that depart from the General Motors Corp division's tradition for building chrome-loaded land yachts The cars are aimed directly at Toyota's Lams Nissan's Infiniti and Honda's Acura luxury-car lines that have been gobbling up chunks of the lucrative US market for high-class wheels Gamma He worried that a hypothetical court in the future might view the reorganization plan and its S3125 million cap as a limit to the amount of liability a judge would award to a striking driver Greyhound bankruptcy attorney Oscar 1 Cantu said Greyhound's financial fuiS bright enough to be able to pay fu- ture administrative claims "This company could pay that claim practices charge against tireyhound The case is being heard by an administrative law judge in Milwaukee The trial will reSUIlle Sept 10 "The drivers' back-pay claims are not Rea Se Bee CireThatindin Casino plan approved CAMDEN NJ Donald Trump's Taj Mahal Casino Resort won approval Wednesday from a bankruptcy judge for a plan to restructure its massive debt by surrendering half the developer's equity in the Atlantic Qty property The plan which gives bondhold- in the equity in exchange for their acceptance of lower interest rates was approved alter a 412-hour hearing by Bankruptcy Judge Rosemary Gambardella Market fever Recycling ts-s' v' ---''f- 4: l': I '7 1:" 4 e- z)'''- i i o''Ise tos Ls 1 r' --'4' i n': '-'6-V --f 7 '6: Vea' lop Iwwl 1' Ai fr'' "r' 'k tg'5! yr- cit: 1: Z246' 4: 11111 AP '1i'-' 4 'i gir4Nt 4 5 5K 1'r: 5 t'N 4 7 i' I sie 4: --3- 5 14 iZ ''k' 1--1" 4 --1 rs' 46 2 1''' c2 t5 "1 -4-- '''4''64-: )1 o'': "'''-'-'-'''''rr-r-'-' 4'4' -'eftl' 1 -f6 P)Y' ''''''''QI1''' '1'jf'r 0 g-1 "tri9-4t 6 '11e144' lb 1tmailit- 6b ''''''4's Ir' let Oit 4e'7 5 55-3-! rn'5' ------T v0-14- 51 4 55- 4 -51 5441fAWli ii4 -11 Itilkx '''4 4 -1 ''1- a A 44-1' il ai 1 ''14k 4r4404" 4 mt 1 IPInoino 1 1101n TA 1 4111g41Millnit 1 i --1 A Pi RPONAN 7 At" itiNWitillb I tAto et -----0 I 1 I I 4 a 1 tr i il megli I44 1 4 '1 1 I I "Alw A lot 41461" 14 ft' 419 Ni It 14 erkt 4 4-4 t-4-0 :4441 $44 4 it t4t it-t ir 4- pc t- -0- 1- 1 4 1' 710opr-14 4 livitiv 1 tokt0- -O 0kt- 2 4--0t4 ":4 l'eltV4Gv-- 4 4'r: 4 :4 4 1 4F 'g 4 t4' 1 4 ''i t'''4 vrF-" 4 )A 't'fr-1 '1- 1 -I --re- Drop in GNP raises lower interest hopes 3 New plastic bottle ATLANTA The Coca-Cola Co said Tuesday it was expanding its distribution of plastic soft drink bottles made from recycled materials after a five-month test in Charlotte NC co*ke earlier this year began packaging its products in the newly de 'eloped bottles one of the few in stances in which recycled plastic SOMCS in contact with food The Food and Drug approved the bottles in January I ntt I Media New owners say they have been interested in buying the 24-room inn for 15 years NEW YORK The stock market's late-summer rally came back to life Wednesday pushing prices to record levels with encouragement from falling interest rates The Dow Jones average of 30 industrials which had slipped 1409 points over the week's first two sessions climbed 2907 to 305523 That topped the previous dosing peak of 304025 reached on Friday Advancing issues outnumbered declines by more than 2 to 1 on the New York Stock Exchange Big Board volume came to an estimated 16962 million shares as of 4 pm EDT against 14392 million at the same point 1 Historic Tarpon Inn sells New owners say revenues will fund major restoration UPI In Chapter 11 WASHINGTON United Press International filed for bankruptcy court protection Wednesday but the 84-year6old news service said it plans to continue worldwide news coverage while looking for a buyer The Chapter 11 petition filed in New York is the troubled company's second hip into US Bankruptcy Court UPI went through one Chapter 11 reorganization in 1985 and 1986 UPI said it has assets of 8227 million and liabilities of $652 million- owed to about 4000 creditors Its owner since 1988 Infotechnology Inc has been operating under Chapter 1 1 since earlier this year By Becky Bull STAFF WRITER PORT ARANSAS The Tarpon Inn began another chapter in its history Monday afternoon when Priscilla Conoley of Houston purchased it for a undisclosed amount from Jim and Doug Atwill Many offers were made on the inn since it was put on the market a few years ago Jim Atwift owner of the inn said Wednesday Atwill chose Conoley's offer because he liked what she wanted to do with the inn "She's very enthusiastic excited about it" Atwill said "That's what it needs right now" In 1979 the two-story 24-room inn was put on the National Register of Historic Places Cono ley first heard about the inn 15 years ago when it was on the market and her sister Chris McCue was considering buying it The next time she heard of it was a few months ago when she saw it advertised in Texas Monthly She called her sister and told her the inn was back on the market The final decision to buy the landmark was made when Conoley visited the town and schools she said "A lot had to do with my kids" Conoley said "We love the beach" Conoley and her kids Skip Lydia and Destry moved into the inn when Conoley purchased it Conoley plans on renovating the inn She will begin by restoring the outside with a new porch hand rails and paint "There just seems like endless things to do" Cono ley said Almost all the money the inn brings in will be used to restore it The sisters want the inn to be a landmark not a big money maker Conoley said "We need to remember the past" Conoley said Atwill and his brother Doug bought the inn in 1977 When he bought the inn Jim Atwill said he was feeling confined in his law practice in Corpus Christi When the opportunity came to buy he jumped on it "Then all of a sudden man I could own a piece of history" Atwill said He bought the inn moved to Port Aransas and opened a law practice He has Please see ToponF5 Tuesday The government sprang a surprise on investors when it reported that the gross national product declined at an annual rate of MI percent after adjustmentfor inflation in the second quarter of the year Earlier the Commerce Department had estimated that GNP grew at a 04 percent annual rate in the April-June period Most analysts tended to dismiss the fact that gross national product has now shrunk for the latest three quarters and re- mined confident that the recovery from recession although almost certainly a desultory recovery is now under way "It doesn't change the outlook very much and might even improve it" said Robert Chandross chief econo- Please see MarketF5 Restaurants Tough merger BALTIMORE Roy Rogers restaurants said "happy trails" to Baltimore and Washington last year as they were taken over by the Hardee's hamburger chain What Hardee's executives didn't know was they were bidding goodbye to many Roy Reg en customers too Analysts said the sharp drop in Sales shows how difficult it is to two brands names under one Retirees in experiment to help small businesses PronColloPTIonsWirellenisso Indicators By John MacDougall BUSINESS WRITER Representatives of the US Small Business Administration and the Service Corps of Retired Executives (SCORE) say that a new partnership formed to assist small businesses in Corpus Christi is paying oft In April SCORE volunteers moved their headquarters from the SBA offices in Government Plaza to the Small Business Development Center in the Chamber of Commerce offices at 1201 Shore Funded by the SBA SCORE is made up of retired executives who donate their time to give advice to small businesses The local chapter consisting of about 30 retired business people holds a free monthly seminar Using their own personal experiences as examples SCORE volunteers discuss business plans marketing taxes and other issues relating to the start up of a new business The SBDC which is funded equally by the University of Texas at San Antonio and the Corpus Christi Chamber of Commerce has a staff of several full-time pro fessiomils who are assisted by volunteers from the business community Like SCORE the small business center also provides free advice to businesses old and new So far the union between SCORE and the small business center has been a productive one according to SCORE chapter chairman Richard Arkwright He said that since the merger four months ago SCORE's cue load has increased 34 percent "We had hoped to increase our workload and counseling load and wanted to make (SCORE) a one-stop shop" for new businesses Arkwright said "By making this move we now have a one-stop shop plus we are in a position to take advantage of all the things the Chamber of Commerce has to offer" The merger is being done on a six-month trial basis "It is a pilot project for future review to see if the SCORE organization and the SBDCs across the country can compliment each others' activities and leverage off each others' resources" said David Royal director of economic Please see SCOREF5 line Moody's downgrades credit ratings on Salomon debt 'ieriPt1(1111 ti i t44: 44 4 4 I and "Illr amoblintri) -411 La I riTE-Imm 1 1 pilmillihm 11 411 4LJ ILL DAN of Clinousle From Wks lerviess NEW YORK Moody's Investors Service Inc dealt a mild blow to Salomon Inc on Wednesday when it lowered by a notch the credit ratings on billions of dollan of Salomon's debt But Moody's kept the ratings at investment grade and Salomon said it did not expect the reduction to hurt On another front the Texas Treasury said it has suspended dealings with Salomon Brothers Inc because of the bond-trading scandal that has rocked the Wall Street firm "Obviously in dealing with public money the first priority we have at any time is safety" Deputy Treasurer Linda Patterson said Wednesday "If there is any investigation we take the safest mute" Moody's announced that it had lowered Salomon's senior debt to A-3 from A-Z and its commercial paper to Prime-2 from its highest level Prime-I because of concerns over the government-bond trading scandal that is plaguing the company and its main subsidiary Salomon Brothers Salomon's common stock and some of its bonds traded slightly higher on Wednesday The common shares dosed at $25375 up 125 cents on the New York Stock Exchange In another matter a Salonion spokesman said Wednesday that the fmn had stopped paying salaries to its four former top executives who resigned in response to the scandal including former chairman John IL Gutfreund But the spokesman said that decisions on other compensation including partici pation in a deferred-pay pool and severance benefits would be delayed until its investigation was finished The executives including Gutfreund Thomas Strauss the former president and John Meriwether the former vice chairman are being provided temporary offices in Salomon space outside its headquarters at 7 World Trade Center in lower Manhattan the spokesman said He added that the executives' legal fees were being paid by Salomon but that other benefits including chauffeured lim-- ousines had been eliminated Paul Mozer and Thomas Murphy the traders who were dismissed in the wake of the scandal have been cut off from all compensation and benefits from the firm the spokesman said A clerk and another trader who were suspended continue to receive their salaries and their legal fees will be paid by Salomon pending results of the investigation he said I ol 6 'a I.

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