THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Thursday, February 22, 1996 TAG: 9602220307
SECTION: BUSINESS PAGE: D2 EDITION: FINAL
LENGTH: Medium: 67 lines
A Justice Department investigation into alleged environmental crimes at John Morrell & Co.'s Sioux Falls, S.D., division yielded indictments of two top officials, the Justice Department said. Morrell was bought by Smithfield-based Smithfield Foods Inc. in late 1995, but the alleged crimes occurred before Smithfield took over. Timothy J. Sinskey, former head of the Sioux Falls division, and Wayne Kumm, the plant engineer, together were charged with 47 counts of violating the Clean Water Act. Sinskey and Kumm are charged with illegally dumping slaughterhouse waste into the Big Sioux River for nearly eight years. Sinskey also was charged with falsifying reports to hide the discharges from the Environmental Protection Agency. (Staff) Hechinger sees wider loss, suspends dividend
Hechinger Co. said its fourth-quarter loss will be much worse than expected because of the harsh winter, competition and slow home sales. The struggling operator of 118 home-improvement stores also said it will stop paying dividends on its common stock, and it obtained a $200 million credit line for three years. Hechinger said it will report a fourth-quarter loss from operations of $30 million to $35 million, or 66 cents to 73 cents a share. Analysts surveyed by Zacks Investment Research had expected a loss of 14 cents a share. (Bloomberg Business News) Discovery Zone may seek bankruptcy protection
Discovery Zone Inc., the chain of indoor playgrounds for children, could seek bankruptcy protection. Discovery Zone's financial problems intensified after January revenue fell far below expectations. The company, which is 49 percent owned by Viacom Inc., secured a $10 million loan to tide it over in January, but that wasn't enough to stem the flow of red ink. Discovery Zone is the largest chain of indoor children's centers with more than 300 sites in North America and Europe. The centers include play zones complete with tubes, slides, ball bins and trampolines. The company last made money in 1993 when it reported a profit of $3.3 million. Discovery Zone lost $24.9 million in 1994 and $114.4 million through the first three quarters of 1995. A Viacom spokeswoman said earlier this month that the company has no plans to provide Discovery Zone with more capital. (Bloomberg) Shipbuilder seeks protection from creditors
German shipbuilder Bremer Vulkan Verbund AG said Wednesday it lost $685 million in 1995 and will seek court protection from its creditors to avoid bankruptcy. The European Commission, meanwhile, demanded that the company Bremer Vulkan repay about $585 million in aid intended for the company's shipyards in the former East Germany, which it says was redirected to the struggling company's west German operations. (AP) USAir Express adds D.C. flight to Peninsula
USAir Express added a round-trip to Washington to its schedule at the Newport News/Williamsburg International Airport. The commuter airline now offers six daily flights to Washington National Airport from the Peninsula airport. USAir Express is the biggest carrier at the airport, offering 19 flights a day. The commuter airline serves the Washington route with 37-seat turboprop airplanes. (Staff) by CNB