Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!usa-post Newsgroups: usa-today.law From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: law Mon, Mar 16 1992 Date: Mon, 16 Mar 92 05:48:19 EST Message-ID: 03-16 0000 DECISIONLINE: Business Law USA TODAY Update March 16, 1992 Source: USA TODAY:Gannett National Information Network BUILDING OWNERS FILE BANKRUPTCY: The owner of the building used for dropping the ceremonial ball on New Year's Eve in New York has filed for Chapter 11 bankruptcy-court protection. Lawyers for One Times Square's owners say the filing will protect the owners from creditors while they reorganize their finances. The owners include OTC Realty Management, Cosquare and OTSM. FIRM MUST JUSTIFY INCREASE: A hearing has been set for March 31 for the Indianapolis Power & Light Co. to justify a 5.4% rate hike it has imposed on its users. If the company fails, it will have to refund money to 380,000 ratepayers. The firm increased its charges without first filing it with the state. DAILY NEWS MAY HAVE BUYER: John Catsimatidis, one of the USA's richest men, is considering buying the New York Daily News, USA TODAY's columnist Dan Dorfman reports. The News filed for Chapter 11 bankruptcy protection Dec. 5. "It's very preliminary," Catsimatidis says. He has a report on the newspaper's financials and prospects from investment banker Salomon Bros. VIRGIN ATLANTIC THREATENS SUIT: Virgin Atlantic has threatened to file a lawsuit against British Airways. Virgin says its rival is spreading rumors about Virgin's finances. Virgin owner Richard Branson says he regrets being forced into taking legal steps. BA says the lawsuit, which Virgin plans to file in the USA, is nothing more than a publicity stunt. N.Y. URGED TO SEEK BALANCE: Fearing a loss of jobs, a New York State legislative commission will review workers' compensation rate levels and how the system can be improved. Expected increases in state workers' comp benefits need to be balanced with rate increases to keep employers in the state, according to an insurance industry representative. COMPANY WANTS RATE HIKE: Massachusetts Electric Company Friday filed a 4.8% rate increase request with the Massachusetts Department of Public Utilities. The company said it was to recover the higher costs of providing electricity. The proposal would mean a $66 million increase in annual revenues. If approved, the increase would be effective Oct. 1 and mean an average $2.06 more per customer per month. LAKEHEAD TO FILE TARIFF HIKE: Lakehead Pipe Line Co. LP announced Friday that it plans to file with the Federal Energy Regulatory Commission new tariffs, including an adjustment to the transportation rates. The rates for transporting liquid hydrocarbons on the Lakehead Pipe Line system would increase 18% under the new tariffs. Lakehead last increased its rates in 1982, according to the company's president. RATES NOT RAISED IN 10 YEARS: Lakehead Pipe Line Co.'s Brian MacNeill Friday explained a plan for an increase in tariffs by saying the company's operating costs have increased since 1982, the last time rates were raised. "A majority of the rate charges represent costs such as property taxes" that Lakehead can't control. The new tariffs will be filed with the Federal Energy Regulatory Commission April 1. PLAN WOULD GIVE INVESTORS STOCK: America West Airlines Friday said its contemplated plan of reorganization, expected to be filed this summer, provides for a substantial investment by new equity investors in return for stock. It also calls for distribution of the reorganized company's stock, or cash to the airline's unsecured creditors and employees being able to acquire equity through a stock option program. JEFFERSON BANKS TO REOPEN: Half of Jefferson Federal's branch banks will reopen Monday. The new owners are AmSouth Bank, First Alabama Bank, Union Bank in Evergreen and People's Bank in Elba. Jefferson Federal was seized by regulators a year ago because they made bad commercial real estate loans. ALASKA SHUTS DOWN SCAM: The Alaska government has shut down a San Diego-based scam guaranteeing laborers $25-an-hour jobs on a mythical 900-mile pipeline in return for $5 processing fee. The state has a 11.6% jobless rate, due in part to scams that lure would-be workers. SUIT FILED TO STOP AUCTION: A suit was filed to stop a March 28 auction of 16 Roswell, N.M., homes that are controlled by the Federal Deposit Insurance Corp. The suit was filed to give renters more time to find financing to purchase the homes or to make arrangements to remain as renters. Business Law Editor: Ed Kelleher. (919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. This article is copyright 1992 Gannett News Service. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM