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 Wed, Aug 19 1992 Date: Wed, 19 Aug 92 04:20:00 EDT Message-ID: 08-19 0000 DECISIONLINE: Business Law USA TODAY Update Aug. 19, 1992 Source: USA TODAY:Gannett National Information Network CONTINENTAL GETS PLAN EXTENSION: A federal bankruptcy judge Tuesday gave Continental Airlines a 45-day extension for it to file a reorganization plan. The extra time is for the carrier to file a plan without any competing proposals being filed. The troubled carrier's exclusivity period is now extended to Oct. 2 - but Judge Helen Balick said Tuesday attorneys in the case needed to "get off their duffs." (For more, please see special Continental package below.) FTC SETTLES WITH CREDIT BUREAUS: The Federal Trade Commission Tuesday announced settlements with three credit "superbureaus" as part of a crackdown on some 200 information brokers that collect information. The FTC said Information Resource Service; CDB Infotek; and Inter-Fact were letting unauthorized people see their files. The FTC said lawyers and detectives had been accessing credit info to use in court. CHIPS, OPTI REACH SETTLEMENT: CHIPS and Technologies Inc. and OPTi Computer Inc. said Tuesday they have resolved CHIPS' patent infringement, trade secret and false advertising claims against OPTi. OPTi has acknowledged the validity of the page interleave patents and that certain of its memory controller products have infringed those patents. OPTi has also agreed to pay an undisclosed sum to CHIPS. UNION READY TO TALK WITH BELL: The Communications Workers of America's chief negotiator at Bell Atlantic said Tuesday union bargainers are ready to talk. Vincent Maisano denied news reports that the union had broken of talks Monday. Maisano said that "it's really Bell Atlantic" that shut down talks when its company negotiators reintroduced a previously withdrawn proposal. IOMEGA TO DEFEND SUIT: Iomega Corp. Tuesday said allegations in a patent infringement filed against it are unfounded. The Roy, Utah-based computer company said it will "vigorously defend" a patent-infringement suit filed Monday by Archive Corp. over its newly introduced Iomega Tape250 drive. Iomega manufactures and sells high-performance removable mass storage products for desktop computers. OTS MAY CHANGE BANKING RULES: The Office of Thrift Supervision Tuesday proposed to streamline regulations governing federal thrifts and banks' mergers and charter conversions. The proposal would let federally chartered savings associations convert directly into state and national banks. The proposal also would let all insured depository institutions merge. WANG FILES FOR CHAPTER 11: Wang Laboratories filed for Chapter 11 bankruptcy protection Tuesday, casting new doubts on its future as a stand-alone computer maker. The filing protects the company from creditors and gives it time to reorganize assets. Richard Miller, Wang's chief executive, said he expects Wang to emerge from Chapter 11 as a smaller company. AMERICA WEST WANTS MORE MONEY: America West Airlines said Tuesday it has requested Bankruptcy Court approval of $43 million to $60 million in additional financing in its efforts to emerge from Chapter 11. The company said that the term sheet filed Tuesday represented successful initial negotiations for additional bridge financing. The funding would be an expansion of its debtor-in-possession financing. LAW FIRMS FEELING THE PINCH: A survey of the New York metro area's top 100 law firms by Legal Assistants Corp. released Tuesday shows that firms feel pressure to cut fees and minimize staff. But they're cautiously optimistic that an upturn may be just around the corner. Seventy-five percent said their firms have been asked to work for fixed fees instead of hourly rates; 65% have been asked to cut hourly rates. NASAA TO WARN OF AIDS SCHEME: The North American Securities Administrators Association will unveil Wednesday what it calls an urgent warning against an investment scheme preying on the AIDS crisis. NASAA says the scheme could result in multimillion-dollar losses. "Investors" are urged to cash out life-insurance policies of AIDS patients at a discount, then get themselves named as benificiaries. SPECIAL PACKAGE ON CONTINENTAL: CARRIER WANTS TO REVIEW BIDS: Continental Airlines had asked for a 90-day extension in filing a reorganization plan, but was granted 45 days on Tuesday. That gives the airline until Oct. 2 to file a Chapter 11 reorganization plan. Barry Simon, senior vice president and general counsel, said the carrier needed time to review bids from a group led by Maxxam Inc. and from Houston businessman Alfredo Brener. CARRIER NEAR SETTLEMENT: Continental senior vice president and general counsel Barry Simon Tuesday said that Continental is close to reaching a settlement with the federal Pension Benefit Guaranty Corp. over unfunded pension liabilities for Continental and its defunct sister carrier, Eastern Air Lines. CARRIER SUED OVER PENSION DEBT: The Pension Benefit Guaranty Corp. has sued Continental for $700 million pension debt owed by Eastern. It also sued for Continental's $139 million pension underfunding. Continental Airlines continues to negotiate details of a tentative $350 million purchase agreement with the Maxxam group, Simon said. (End of package.) Business Law Editor: Beth Mann. (919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. 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