Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, May 8, 1993 TAG: 9305080124
SECTION: BUSINESS PAGE: A-4 EDITION: METRO
SOURCE:
DATELINE: LENGTH: Medium
RICHMOND - AAA of Virginia, operating a branch in Roanoke, will merge with Philadelphia-based AAA Mid-Atlantic Inc., effective July 1, the Richmond-based travel services club said. The merger will create no layoffs or office closings at AAA Virginia, said Allen J. DeWalle, its president.
The Virginia AAA, which formed in 1921, will reduce its work force of 160 by about 10 through attrition over the next couple of years, DeWalle said. - Associated Press
Union members OK Greyhound contract
DALLAS - Amalgamated Transit Union members have approved a proposed settlement with Greyhound Lines Inc., ending a 38-month strike that left thousands of drivers unemployed and drove Greyhound into bankruptcy.
ATU International President Jim La Sala said Friday that Amalgamated Council of Greyhound Local Unions members had approved the six-year contract, announced April 20 by Greyhound and ATU officials.
Greyhound President Frank Schmieder called the vote "terrific news" and said the contract "is certainly a win-win situation for labor and management."
The agreement ends a strike that began March 2, 1990, after ATU drivers and mechanics rejected the company's last offer.
The strike disrupted service and prompted violence, bringing losses that forced Greyhound to seek protection from creditors in June 1990. Greyhound emerged from bankruptcy in October 1991 and has been profitable since.
Greyhound by July 1 will recall 550 striking drivers and other drivers on a seniority basis, and will distribute $22 million in back pay. - Dallas Morning News
Heico makes deal to run Nutri-System
PHILADELPHIA - Heico Acquisitions Inc. said Friday it had reached a deal to take management control of Nutri-System Inc. while it continues to hammer out an agreement to buy the company.
The management agreement is subject to approval by U.S. Bankruptcy Judge David A. Scholl, who was not available to rule on it Friday.
A bankruptcy trustee was appointed for Nutri-System earlier in the day under an agreement reached in court Thursday calling for the naming of a trustee if a purchase agreement was not finalized by noon Friday.
Heico Chairman Michael Heisley said he hoped to get the company back into operation as soon as the parties could get Scholl's approval.
Heico had been in purchase negotiations with Nutri-System shareholder and chief executive Albert J. DiMarco and the company's seven bank lenders before April 28, when it ceased operations for lack of cash.
The banks, which are owed at least $44 million, had seized the company's bank accounts the day before, reportedly because some were displeased with a proposed purchase by Heico. - Knight-Ridder/Tribune
by CNB