Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.law From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: law Thu, Aug 13 1992 Date: Thu, 13 Aug 92 05:17:49 EDT Message-ID: 08-13 0000 DECISIONLINE: Business Law USA TODAY Update Aug. 13, 1992 Source: USA TODAY:Gannett National Information Network CARD TO MAKE TRICKY DECISION: British Airways' $750 million bid for part of USAir is turning into a hot potato for Transportation Secretary Andrew Card, who can approve or reject the deal. Card must decide if criticisms of the deal from American, United and Delta are legitimate arguments. Some question if British Airways is really trying to take complete control of USAir. BRITISH AIR INFLUENCE ON BOARD: There's no question the British Airways:USAir deal conforms to the rules as far as stock ownership. Foreigners can own 25% of the voting stock and 49% of total equity of U.S. airlines. British Airways would hold 21% of USAir's voting stock and 44% of the total. What is controversial is the influence on USAir's board. Five of USAir's 16 directors would be BA representatives. TWA GETS 60 DAYS: A bankruptcy court judge Wednesday gave TWA 60 more days - until Oct. 13 - to file its bankruptcy reorganization plan. TWA's extension, the second since it filed for bankruptcy protection in February, comes amid talks to transfer ownership of the airline to its unions and creditors. Under the proposal, TWA Chairman Carl Icahn would step down. TRADE BATTLE BEGINS: White House handshakes over President Bush's announcement of a North American Free Trade Agreement were still warm Wednesday when battle lines over the treaty - meant to create the world's largest trading bloc - began forming on Capitol Hill. Bush said the increased trade among the United States, Mexico and Canada would create U.S. jobs. CRITICS EXPECT JOBS LOST: Trade officials estimated an additional 300,000 U.S. jobs would come from expanded trade with Mexico over the next two years. But labor unions and some members of Congress said thousands of U.S. jobs would be lost. Key to the debate will be accompanying legislation creating programs to help workers who lose jobs. URBAN AID ON HOLD: Failing to make significant progress on a multibillion-dollar aid package for America's cities, the Senate headed into its August recess Wednesday with plans to renew the urban assistance debate after returning on Sept. 8. As the bill stands now, it would create 25 "enterprise zones," where investors would be enticed with new tax breaks to bring job-creating investment. IRA CAP SET: An upper-income cap on users of individual retirement accounts was set by the Senate Wednesday, one day after the lawmakers voted to restore the popular IRA savings device restricted since 1986. The cap, putting IRAs off limits to individuals making more than $80,000 a year or couples with a combined income of $120,000, was authored by Sen. Howard Metzenbaum, D-Ohio. INDIANS WILL WAIT LONGER: It might be another three years before Indian tribes get an accurate accounting of the $2 billion in trust funds the Bureau of Indian Affairs administers for them. Witnesses told the Senate Select Committee on Indian Affairs Wednesday it may be longer before individuals accounts are reconciled. The trusts are the result of settlements for industry and agriculture on Indian land. IBF'S LEE TAKES 5TH AMENDMENT: International Boxing Federation Commissioner Bob Lee invoked his 5th Amendment rights against self-incrimination Wednesday after a one-time Colombo crime family captain told a Senate investigative panel that the underworld is deeply involved in the professional boxing industry. The surprise development came at a Senate Permanent Subcommittee on Investigations hearing. BOND FIGHTS FOR MISSOURI: Republican Sen. Christopher Bond is taking his battle to protect Missouri's share of federal highway funds to House-Senate negotiators, who will write the final transportation appropriations bill. Senators last week passed a bill eliminating a $400 million bonus fund earmarked for states that have historically received less federal highway aid than they have paid in taxes. LABOR AGREEMENT APPROVED: The Bankruptcy Court and LTV's creditors Wednesday conditionally approved the tentative labor agreement between LTV Steel and the USWA. Judge Burton Lifland granted creditors an additional day to review the final documents. If no objections by the creditors are filed Thursday, the judge will sign an order approving the labor agreement. USA, MEXICO SIGN DEALS: The USA and Mexico Wednesday signed several telecommunications agreements that will allow the two countries to coordinate regulation of communications services along their border. The agreements will allow individuals to use cellular telephones on either side of the border by establishing compatible channels in both countries, the Federal Communications Commission said. LAWYERS GET BEST DEAL: The lawyers for a couple who sued the Cantebury Inn Ltd. after they found a two-way mirror in their room will get more money than each of the plaintiffs in a $1 million settlement agreement. Pat McCartt and Tonya Naughton will get a total of $375,000, the Iowa Civil Reparations Trust will get $291,000 and $334,000 will go to Cedar Rapids lawyer Tom Riley and his assistants. Business Law Editor: Kate Coughlin. (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