Northrop may cut B-2 workersNorthrop Corp. said yesterday...

BUSINESS DIGEST

September 19, 1992

Northrop may cut B-2 workers

Northrop Corp. said yesterday that it may cut its B-2 bomber task force nearly in half in 1994 and 1995 because of reduced government spending on the bat-winged bombers.

Northrop spokesman Ed Smith's statements came in response to an Orange County Register story on a draft memo by Oliver Boileau, general manager of Northrop's B-2 division. Mr. Boileau estimated that 6,000 workers of the current 12,500 would be needed to complete the program if only 20 B-2s were ordered instead of 75. The U.S. Senate voted 53-45 yesterday to provide $2.7 billion for the radar-evading bomber in the coming year, continuing the program at a 20-plane level.

Olympia funding plan approved

A judge approved a plan yesterday to pay for Olympia & York Development Ltd.'s operations while the company continues under bankruptcy court protection. But the judge lightened the burden of contributions to be made by two groups of secured creditors.

The funding plan will pay O&Y's overhead and restructuring costs for the period from Sept. 1 to Nov. 30. It replaces a previous plan that expired Aug. 31. The plan calls for the expenses to be paid through a combination of management fees levied on O&Y's buildings and through proceeds from the sale by the company of unencumbered assets.

Bahamas begins financial probe

Prime Minister Hubert Ingraham of the Bahamas said yesterday that he will appoint two commissions of inquiry to find out what happened to "millions of dollars" that have allegedly disappeared from government-owned corporations.

In an interview, Mr. Ingraham said the commissions would review the financial affairs of the state-owned Hotel Corp. and the national airline Bahamas Air. Mr. Ingraham said "millions of dollars . . . were frittered away" at the airline. Mr. Ingraham's Free National Movement party swept away the 25-year-old government of Sir Lynden O. Pindling in general elections a month ago.

Pa. investors to get refunds

The state Attorney General's Office in Pennsylvania said yesterday that about 3,000 residents will receive $1.2 million in refunds from a New York investment company that allegedly misled customers about the risks involved in its two junk-bond mutual funds. First Investors Corp. reached an agreement with the state but did not admit or deny wrongdoing in the case.

The federal Securities and Exchange Commission had charged that the firm's sales representatives had pushed shares in the highly volatile funds on people with low incomes, elderly people and those with limited financial knowledge. The company agreed in June to pay $24.7 million -- the largest fine of its kind ever -- to settle the federal charges.

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