Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, August 5, 1995 TAG: 9508080019
SECTION: BUSINESS PAGE: A-6 EDITION: METRO
SOURCE:
DATELINE: LENGTH: Medium
ST. LOUIS - A bankruptcy judge on Friday approved Trans World Airlines' reorganization plan to turn over more of the company to creditors and dilute the employees' stake.
The confirmation, which comes just more than a month after the airline filed for bankruptcy, virtually completes TWA's second court-supervised reorganization.
For TWA, the reorganization means $50 million less in interest payments per year and a better chance to take advantage of profitable times for the airline industry.
The plan would lift nearly one-third of the airline's debt off its books and will be put in place in two weeks if no appeals are filed. The airline's creditors agreed to the reorganization plan in advance and major unions such as TWA's pilots have supported the deal.
Creditors would increase their ownership of the airline to 70 percent in return for forgiving the debt, and the employee stake would drop to 30 percent.
- Associated Press
Delta ends some short-haul routes
ATLANTA - Delta Air Lines said it will jettison some short-haul routes for more profitable long-haul trips as part of a major winter schedule change effective Dec. 1.
The moves, similar to those made for Delta's summer schedule, will mean a net gain of $65 million to $85 million a year, Delta predicts. They're part of Delta's effort to cut $2 billion, or about 15 percent, out of annual costs by 1997.
Delta's Atlanta customers can expect additional flights but the airline is transferring some shorter routes to its feeder carriers - Comair and Atlantic Southeast Airlines - which fly mostly Delta passengers to smaller cities.
- Cox News Service
Oriskany rejects extended service
Telephone customers in Oriskany, a small Botetourt County community, have turned down a proposal to eliminate toll charges on calls to Fincastle and Troutville, the State Corporation Commission reported this week.
The Oriskany customers of the Roanoke & Botetourt Telephone Co. would have paid $9.50 a month for residential flat-rate service, an increase of $3.65 a month, if the proposal had passed. Of 51 ballots returned from 73 mailed, 64.7 percent voted against the extended local service, the SCC said.
- Staff report
Bankruptcies
Two bankruptcies with business affiliations have been filed in the U.S. Bankruptcy Court for Western Virginia at Roanoke. Both are personal bankruptcies that the court listed as businesses because they have commercial connections and could be of interest to business creditors and customers.
Jon D. Hayes of Roanoke, previously doing business as Aikido of Virginia Inc., filed for liquidation listing assets of $1,376 and liabilities of $15,465.86. According to court documents, Hayes operated the martial arts school at Crossroads Mall from Feb. 1 to March 1.
Michael Warner Collins and Matilda Roberts Collins of Bastian filed for liquidation, listing assets of $10,165 and liabilities of $32,191. They operated Hollywood Weight Loss in Bluefield, W.Va., from April 10 to July 1.
- Staff report
by CNB