ROANOKE TIMES
Copyright (c) 1997, Roanoke Times
DATE: Saturday, March 29, 1997 TAG: 9703310113
SECTION: BUSINESS PAGE: A-9 EDITION: METRO
NS gets more buying power for Conrail deal
Norfolk Southern Corp. has increased to $4.3 billion its capacity to raise cash through the sale of bonds, a step toward acquiring a large portion of Conrail Inc.
The Norfolk-based railroad registered with the Securities and Exchange Commission this week to sell $3 billion of debt to finance the deal. That adds up to $1.3 billion it has already registered. Such so-called ``shelf registrations'' allow companies to sell bonds as needed to raise cash.
Norfolk Southern is in the midst of negotiations with Richmond-based CSX Corp. to divide Conrail's northeastern freight rail network. Philadelphia-based Conrail, which had wanted to merge with CSX, agreed to be split in early March after a five-month takeover fight, under pressure from Norfolk Southern's richer bid, shippers and rail regulators.
Norfolk Southern has already paid $943 million for a 9.9 percent stake in Conrail. Selling all the debt it has registered to buy Conrail would bring its spending on Conrail to nearly $5.25 billion.
Norfolk Southern may be planning to use some cash on hand to supplement the debt sale or it could sell some stock to raise more money.
-LANDMARK NEWS SERVICE
GM workers win more help
FORT WAYNE, Ind. - Workers who struck a General Motors truck plant for two weeks won agreement from the automaker to add employees to ease a staffing shortage.
The walkout by about 2,700 workers at the Fort Wayne plant had disrupted production of some of GM's most popular pickup trucks.
The accord ratified late Thursday by United Auto Workers members contains provisions calling for 276 more workers from GM's placement center at the Fort Wayne plant.
The workers walked off their jobs March 14, complaining that insufficient manpower at the plant prevented employees from taking vacations or even leaving the assembly line to use the rest room.
``Just about everything we had on the table, if we didn't get it, we got a good portion of it,'' Joe Burkhamer, president of UAW Local 2209, said late Thursday.
Workers will begin returning to their jobs Tuesday morning, after an Easter Monday holiday, said GM spokesman Tom Beaman.
New employees could start as soon as April 7, although that would only be a few workers, he said. The rest will be hired over the next several months, he said.
The Fort Wayne plant produces the Chevrolet C/K and GMC Sierra full-size pickups, which have been among GM's hottest sellers.
GM is investing $300 million in a new body shop for the GMT-800, the first completely redesigned full-size pickup since the Fort Wayne plant opened 10 years ago.
-ASSOCIATED PRESS
Area companies win contracts
Three Western Virginia companies this week were awarded major federal contracts:
Litton Systems Inc. of Blacksburg won a $116,550 contract from the Defense General Supply Center in Richmond for electrical contact brush holders.
Hercules Aerospace Co. of Radford won a $277,425 contract and a $207,329 contract, both from the Army in Rock Island, Ill., for operation of government-owned facilities.
ITT Corp. of Roanoke won a $29,900 contract from the Defense Supply Center in Columbus, Ohio, for equipment.
-STAFF REPORT
Reynolds Metals Co. plans layoffs
RICHMOND - Reynolds Metals Co. is restructuring its operations, possibly to prepare for a spinoff of its packaging business.
Reynolds, which has recycling operations in Roanoke, will reorganize into six worldwide businesses, down from 20, effective Tuesday. The reorganization is designed to focus the company on aluminum markets with the most potential for profitable growth.
The changes will result in job losses, but it is too early to predict how many, spokeswoman Lou Anne Nabhan said.
Reynolds has been engaged in a portfolio review with its investment bankers and expects to announce a detailed outline of its reorganization plans.
There has been speculation that Reynolds will spin off its packaging and cans business, a move that some in the financial community are pushing. Together they generate about 35 percent of the company's revenue.
-ASSOCIATED PRESS
Bankruptcies
Four bankruptcies with business affiliations have been filed in the U.S. Bankruptcy Court for Western Virginia at Roanoke. One of them is a personal bankruptcy that the court listed as a business because it has commercial connections and could be of interest to business creditors and customers.
Dance Factory Inc. of Roanoke filed for liquidation with assets of $502 and liabilities of $246,894. It also does business as Allstar Gymnastics, Dance-a-Gram and Allstar Dance Academy.
H. Neal Davis DDS P.C., a dentist at Big Stone Gap, filed for reorganization and protection from creditors. He had assets of $328,692 and liabilities of $63,948.
Phillip Cameron Newcomb of Roanoke, a building and framing subcontractor, filed for a wage-earner plan for repayment of debts without estimating assets or liabilities. He does business as Blue Ridge Builders of Virginia and Newcomb Building and Subcontracting.
Frank James Michael and Christine Price Michael of Ceres in Bland County filed under a special section for reorganization of family farms. They had assets of $183,600 and liabilities of $219,337.
-STAFF REPORT
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