Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, April 19, 1991 TAG: 9104190128
SECTION: BUSINESS PAGE: A7 EDITION: METRO
SOURCE: Associated Press
DATELINE: MONTVALE, N.J. LENGTH: Short
Directors of the debt-ridden company asked shareholders for the face lift in order not to sully the Western Union name in a possible bankruptcy filing in June.
The holding company is New Valley, while the two profitable divisions that remain - money transfers and Mailgrams - will continue to operate under the Western Union name.
At the company's annual meeting here, Chief Executive Officer Robert Amman said the name change will protect perhaps Western Union's biggest asset: its almost universal name recognition.
New Valley bears little resemblance to the Western Union that helped generations of Americans announce the births, deaths and other important events in their lives.
Saddled with junk-bond debt and left behind in the rush of technology, Western Union has gradually sold off most its parts, including its satellites and phone lines, to avoid bankruptcy.
In December, Western Union sold its telex and electronic mail systems to American Telephone & Telegraph Co. for $180 million and used the proceeds to buy back $334 million of its junk bonds for 50 cents on the dollar.
But New Valley, based in Upper Saddle River, is still ringed with mountains of debt: a $42.2 million payment due June 15 and a $170 million principal payment in 1992.
by CNB