Delta pay, debt under reviewIn new signs of financial...

BUSINESS DIGEST

December 05, 1992

Delta pay, debt under review

In new signs of financial trouble at Delta Air Lines, the company said it is considering pay cuts for its employees, and a credit rating service issued a negative report on the airline.

Delta Chairman Ronald W. Allen warned of the cuts in the latest edition of the company's internal newspaper, the Dispatch.

Standard & Poor's Corp. said yesterday that it was reviewing its ratings of several classes of Delta debt and its preferred stock, to determine whether they should be downgraded.

Court voids Manville settlement

A federal appeals court yesterday threw out a settlement that restructured the trust created by Manville Corp.'s bankruptcy plan to pay asbestos victims. The 2nd Circuit Court of Appeals sent the case back to a federal district court for further consideration.

The ruling will further delay payments to more than 150,000 victims of asbestos-related diseases. Denver-based Manville Corp. filed for bankruptcy in 1982 as it faced lawsuits filed by individuals injured by asbestos, which was widely used as an insulation material.

It emerged from bankruptcy in 1988 with a landmark reorganization plan setting up the $2.5 billion trust.

Teamsters rejected at Cloverland

A bid by the Teamsters union to represent workers at the Cloverland Farms Dairy has been overwhelmingly rejected the dairy employees, the union announced yesterday. By a vote of 121 to 12, the workers decided to continue to be represented by the Independent Dairy Workers Union, a union that only serves the employees at Cloverland.

Ralph Purnell, a spokesman for Teamsters Local 570, said he was surprised by the lopsided defeat in the election held Dec. 3, and attributed it to the company's lobbying on behalf of the independent union.

PNC to acquire Ohio Bancorp

PNC Financial Corp. plans to buy Ohio Bancorp in a stock swap worth about $251 million, the bank holding companies said.

Under terms of the deal, which was announced yesterday, each of the 7.92 million outstanding shares of Youngstown-based Ohio Bancorp will be exchanged for 1.12 shares of PNC common stock. The deal -- expected to close in the third quarter of 1993 -- is subject to approval of regulatory agencies, Ohio Bancorp shareholders and PNC's board of directors. PNC Financial is based in Pittsburgh.

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