Continental to leave bankruptcy
Continental Airlines is set to emerge from bankruptcy today with the backing of Air Canada and a group of Texas investors.
After more than two years under Chapter 11 protection -- the Houston-based airline's second flight through the bankruptcy courts -- Continental scheduled a New York press conference to announce its new beginning.
Allstate agents sue Sears
Sears, Roebuck and Co. has been sued by its own Allstate Insurance Co. agents, who are demanding that Sears pay hundreds of millions of dollars in operating expenses.
More than 100 Allstate agents said Sears recruited them with promises that the company would pay for office rent, claims processing, computers and other operating expenses. Instead, the company passed those bills on to the agents, who were primarily former staff agents recruited as outside agents, the agents alleged.
European airlines plan merger
Four European international airlines said yesterday that they had agreed to pursue a merger that would lead to the creation of Europe's largest overseas carrier.
The lines -- Swissair, Scandinavian Airlines System, KLM Royal Dutch Airlines and Austrian Airlines -- said they would try to establish a jointly owned company by next year, with a new name and a single balance sheet. Swissair, SAS and KLM would each own 30 percent of the new carrier; Austrian Airlines, 10 percent.
Martin pays U.S. $970,000
Martin Marietta Corp. paid the United States $970,000 to settle a claim involving a contract for the C-130 military cargo aircraft, the Justice Department said yesterday.
The company's simulation and control systems department in Daytona Beach, Fla., "failed to disclose complete and accurate cost and pricing data on a government contract for logistics support of flight simulators" for the C-130, the department said. The Martin Marietta division was owned by General Electric Co. at the time of the violations.
2 named to terms on FASB
A former treasurer of a computer company and the director of bond research for a leading money management firm were named yesterday to five-year terms on the Financial Accounting Standards Board, which sets accounting standards for American companies.
John M. Foster, 44, a former vice president and treasurer of Compaq Computer Co., was named to one of two seats reserved for former corporate officials. Anthony T. Cope, 56, a partner and director of fixed-income credit research at Wellington Management Co. in Boston, was named to the seat reserved for users of financial reports.