Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.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 Thu, Sep 24 1992 Date: Thu, 24 Sep 92 04:37:35 EDT Message-ID: 09-24 0000 DECISIONLINE: Business Law USA TODAY Update Sept. 24, 1992 Source: USA TODAY:Gannett National Information Network ZUCKERMAN WINS DAILY NEWS ROUND: Mort Zuckerman crossed another hurdle Wednesday to his now all-but-inevitable ownership of New York's Daily News. Creditors of the tabloid dropped objections to Zuckerman's $36.3 million bid, which would give them 13 cents to 17 cents on the dollar. Also, bankruptcy judge Tina Brozman ruled Zuckerman, who owns U.S. News & World Report, will get $3.2 million if his deal falls through. JUDGE OKS BRIDGE LOAN: Bankruptcy judge Tina Brozman Wednesday OK'd a $3 million bridge loan to keep the Daily News afloat. Would-be owner Mort Zuckerman will provide $500,000 now and $500,000 on Oct. 22, when the court is expected to OK the final deal. Still needed: An agreement with the Newspaper Guild. He has agreements with the News's eight other unions. WORKERS PREPARE FOR STRIKE: Philadelphia city workers are preparing for an ugly and potentially violent strike in response to Mayor Ed Rendell's cost cutting efforts. Rendell, trying to erase a $248 million deficit, carried out his threat Wednesday to impose harsh cost savings measures on city workers. The plan includes a pay freeze, less time off, a new health plan and a reduction in union power. EFFORTS COULD SAVE $99 MILLION: Philadelphia Mayor Ed Rendell's plan to impose cost savings measures on city workers could save an estimated $99 million a year. The measures imposed Wednesday could lead to an ugly and potentially violent strike and include a pay freeze. The unions have picket signs printed, but workers have been told to report to work Thursday as usual. ALLSTATE CHARGED IN CALIFORNIA: California Insurance Commissioner John Garamendi Wednesday took the first legal action against an insurer in connection with the 1991 Oakland firestorm. Garamendi issued a legal accusation and show cause order charging Allstate Insurance Co. and eight of its insurance agents with 153 underwriting and claims handling acts constituting violations of the Unfair Practices Act. ORION TO PAY SONY $70 MILLION: Orion Pictures has proposed to pay Sony Pictures Entertainment Inc. $70 million by 1995 under a plan of reorganization filed with the Securities and Exchange Commission. The $70 million would pay for movies that Orion had agreed to provide to Sony in a 1990 agreement but has not provided. A federal bankruptcy judge approved Orion's disclosure statement earlier in the month. NEWSPAPER MUST PAY FOR CLEANUP: Florida regulators said Wednesday that the state will ask the Orlando Sentinel to pay for the cleanup of chemical pollution in the city's groundwater that threaten's its drinking supply. The state Department of Environmental Regulation rejected an appeal by the newspaper and said it has traced a plume of a grease-cleaning chemical called tricholroethene to the newspaper's property. CHRYSLER NOT IN CONTEMPT: U.S. and Canadian subsidiaries of Chrysler Corp. were not in contempt of a tribunal ruling, Canada's Competition Tribunal ruled Wednesday. The tribunal said there was not enough evidence to show they were delaying parts shipments to consumer Richard Brunet of Montreal. Brunet charged the companies cut off his parts supply because of a related dispute in 1986. HOUSE TO VOTE ON CAR I.D. BILL: The House likely will vote before the end of next week on an auto-theft bill that would require some car parts to be marked with identification numbers. The bill, written by Rep. Charles Schumer, D-N.Y., would extend the current marking program to all new passenger vehicles. The program now is for cars with a high risk of being stolen. HUNT FAMILY BACK IN COURT: Members of Dallas' Hunt family return to bankruptcy court Thursday. They want a judge to dismiss a racketeering suit seeking $100 million from relatives and affiliates of Nelson Bunker Hunt and William Herbert Hunt. The lawsuit claims the Hunt brothers shuffled million of dollars of assets to relatives during personal bankruptcy filings. The Hunts file for bankruptcy in 1988. SIERRA REACHES RESOLUTION: Sierra On-Line Inc., Virgin Games Inc. and Westwood Studios Inc. said Wednesday they have reached a resolution over a disagreement related to Virgin's use of Sierra's King's Quest mark. Sierra objected to Virgin and Westwood's use of its King's Quest mark in advertisements and packaging for their own product. Virgin and Westwood will include a disclaimer in three future advertisements. ATTORNEYS GENERAL BLAST RULING: Pennsylvania Attorney General Ernie Preate Jr. Wednesday joined the attorneys general of 23 other states and the Virgin Islands in attacking a proposed settlement of an airline price-fixing case. The settlement gives consumers hard-to-redeem coupons, while the class-action lawyers get at least $24 million in cash. The settlement is subject to federal district court approval. 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