Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.law,americast.usa-today.law From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: law Fri, Oct 30 1992 Date: Fri, 30 Oct 92 04:42:14 EST Message-ID: 10-29 0000 DECISIONLINE: Business Law USA TODAY Update Oct. 29, 1992 Source: USA TODAY:Gannett National Information Network REEBOK GETS PUMP PATENT: Reebok International Ltd. Wednesday said it has been granted a patent for the pump that inflates its sneakers. The company has sued to stop rival L.A. Gear from selling its inflatable shoes. The patent is for athletic shoes with an inflatable chamber and a built-in method for adding air to the chamber. Reebok said it has additional patents pending on other parts of the technology. AIR MICRONESIA MOVE APPROVED: A federal bankruptcy court judge Wednesday approved a plan by Continental Airlines to declare its Air Micronesia a separate entity. The move allows Air Micronesia to be used as collateral by investors who may purchase Continental, reports Bloomberg Business News. Approval was pivotal to Continental reorganization; all known bids involve using Air Micronesia as collateral. O&Y PUBLISHES PROPOSAL: Olympia & York Developments Ltd. Wednesday made public a revised restructuring plan that would hand over 90% of the company to unsecured creditors. The plan for the faltering real estate company would create four new companies as part of the restructuring process. O&Y said that two new holding companies would be created as part of the restructuring process. FIVE INSURANCE COMPANIES FOLD: Hurricane Andrew left five more casualties in Florida - insurance companies that folded from overwhelming claims. "Some local companies just get overwhelmed by a storm this big, and that's why you have ... a regulatory system," Insurance Information Institute's Marc Rosenberg said Wednesday. Claims will be paid by the Florida Insurance Guaranty Association. BLUE CROSS COMPANIES TO MERGE: Blue Cross and Blue Shield of Virginia and Group Hospitalization and Medical Services Inc. said Wednesday they plan to join forces. Group Hospitalization is the parent company of Blue Cross and Blue Shield of the National Capital Area. Officials said they have signed a letter of intent to integrate operations of the two independent Blue Cross and Blue Shield companies. EX-COMMODITY DIRECTOR SENTENCED: The former director of the Commodity Futures Trading Commission was sentenced Wednesday to 57 months in prison for his role in a 1990 conspiracy to defraud two banks. Anthony McDonald, director during the Ford Administration, and an associate helped launder $1.1 million in fraudulent checks drawn from the Bank of New York and Security Pacific Bank, according to court documents. PHOTON TECHNOLOGY GETS PATENT: Photon Imaging Corp. Wednesday was awarded a patent by the U.S. Patent Office for an electronic printing technology called Laserfan. The technology allows for producing high resolution pictures and other images with desktop printers at low cost by combining laser and fiber optics technologies. COLUMBIA WANTS MORE TIME: The Columbia Gas System Inc. and Columbia Gas Transmission Corp., its principal pipeline subsidiary, Wednesday filed a joint motion in federal bankruptcy court for more time. The motion extends to March 25 the period during which the companies have exclusive rights to file their individual plans of reorganization. The current period expires Nov. 25. TLC BEATRICE SUITS SETTLED: Lawsuits against Reginald F. Lewis, the chairman and chief executive officer of TLC Beatrice International Holdings Inc. by creditors and bondholders of McCall Pattern Co. have been terminated with prejudice by the plaintiffs, it was announced Wednesday. The settlement approved in federal bankruptcy court gives Lewis $1 million from McCall's insurers. TENNECO, EQUINOX END TALKS: Tenneco Inc. and Equinox Resources Ltd. Wednesday ended by mutual consent talks for Equinox to buy Tenneco's gold properties. A Tenneco spokeswoman did not elaborate. Equinox last month announced that it had conditionally agreed to buy the assets for $3.4 million. The company announced the end of talks in a news release announcing approval for its merger with Eastmaque Gold Mines Ltd. INVESTOR DENIES OUSTER ATTEMPT: Investor Ronald LaBow Wednesday testified in federal bankruptcy court that his proposal to invest in SPI Holdings Inc. was not an attempt to get rid of its principal, Marvin Davis. LaBow admitted that his proposal would reduce Davis' stake in the company to less than 1%. The hearing continues Thursday on the attempt by some preferred shareholders to block SPI's reorganization. CIGNA SUIT SEEKS $1 BILLION: A complaint filed on behalf of a Tampa resident Wednesday charges that Cigna Corp. used fraudulent and deceptive practices to sell investments such as limited partnerships. The suit seeks refunds and interest of more than $1 billion. The complaint alleges Cigna told investors they were receiving high-quality financial planning services; in fact, they received high-risk investments. GROUPS SEEK EARLY APPROVAL: A coalition has filed an emergency motion with the California Public Utilities Commission to approve long-term discounted natural gas contracts. The order would let Pacific Gas & Electric and Southern California Gas more flexibility to compete for large industrial and commercial customers. The coalition is composed of the two named as well as two advocacy groups. Business Law Editor: Beth Mann. (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