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 Fri, May 8 1992 Date: Fri, 8 May 92 05:31:37 EDT Message-ID: 05-08 0000 DECISIONLINE: Business Law USA TODAY Update May 8-10, 1992 Source: USA TODAY:Gannett National Information Network CHILD WORLD FILES CHAPTER 11: Toy retailer Child World Inc. said Thursday it will file for Chapter 11 bankruptcy court protection. The USA's second-largest toy retailing chain said it will close 54 stores. The company will keep 71 stores open. W. John Devine, chairman of the Avon, Mass.-based company, said Child World's problems were compounded by a "horrendous" retailing climate last year. MGM-PATHE AUCTIONED: Movie studio MGM and its parent company, Pathe Communications Corp., were auctioned Thursday to French state-owned bank Credit Lyonnais, their largest creditor, for $483.5 million. There were no other bidders at the foreclosure sale, which ends a long legal and financial battle between the bank and former MGM-Pathe owner, Italian financier Giancarlo Parretti. BILL WOULD LIMIT CAR SALES: Congressional Democrats introduced legislation Thursday that orders President Bush to negotiate limits on shipments of cars and trucks to the USA and sales of cars built in the USA by Japanese automakers. Under the bill, Japanese auto sales in the USA could rise if sales of U.S. automakers' cars in Japan increase. CUSTOMS FRAUD COSTING MILLIONS: Bush administration and business leaders said Thursday that customs fraud by China and other textile-exporting nations is costing the U.S. treasury millions of dollars in uncollected revenues and is ruining the domestic textile industry. Customs Commissioner Carol Hallett told the House oversight hearing that China is by far the worst offender. FRACTION OF GOODS CAUGHT: A Customs official told a House oversight hearing Thursday that only a fraction of the illegal goods that come into the USA from other countries can be caught. "For the unscrupulous international trader, evading these lawful duties still offers a temptation for fraudulent practices," said Customs Commissioner Carol Hallett. TCBY SETTLES SUITS: TCBY Enterprises Inc. Thursday announced that it has reached a settlement agreement with respect to certain lawsuits filed between 1990 and 1992 over alleged federal securities law violations. The settlement, once effective, would extinguish all pending securities law lawsuits against TCBY or any of its officers or directors. TCBY will make payments to stockholders as means of settlement. PROSECUTORS WILL NOT COMMENT: It would be "inappropriate" to comment on news reports that a group calling itself "Rainbow Warriors" has demanded "a lot of money" to release missing Exxon Corp. international division chief Sidney Reso, New Jersey prosecutors said Thursday. He disappeared from the driveway of his home in Morris Township a week ago. OWL PRESERVE APPROVED: The creation of a nine-million-acre preserve for northern spotted owls in three Western states was approved Thursday by a U.S. House committee. Wednesday, a different House panel voted for an eight-million-acre preserve. Thursday's action by the Interior subcommittee would cut logging to about 25% of the 1980s level. The Bush administration unveils its owl plan May 14. NEW APPROACH SHOULD BE TAKEN: A policy of using the same techniques to fight health-care fraud that have worked well in the fight against drug interdiction, was advanced Thursday by Rep. Jim Kolbe, R-Ariz. "Allow the Department of Justice to seize assets either used in the commission of federal health-care crimes or resulting from health-care crimes," Kolbe told a House subcommittee. STATE PROBES INSURANCE: A state investigation in Florida is expected to conclude next week into insurance problems in Dunedin, where damage from sinkholes is approaching the $10 million mark. One insurance company has decided to pull out of the town and dozens of residents are fighting to get policies renewed or claims settled by as many as 20 other companies. NEVADA GIVES APPROVAL: Nevada gaming officials have given six state licensees the approval to expand worldwide and five licensees the approval to explore operations in other states. The primary target is Chicago, which is exploring legalizing gambling. BILLBOARD OWNERS NEED PERMITS: Owners of 3,000 illegal billboards in Arkansas must get permits by June 17 or face having the billboards cut down, the Arkansas Highway and Transportation Department said Thursday. The billboards violate new beautification regulations enacted in December. Business Law Editor: Jason P. Smith. (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