Merry-Go-Round gets financingMerry-Go-Round Enterprises...

BUSINESS DIGEST

January 22, 1994

Merry-Go-Round gets financing

Merry-Go-Round Enterprises Inc. received approval from U.S. Bankruptcy Judge E. Stephen Derby for $40 million in interim financing yesterday, just in time to buy spring merchandise.

Richard H. Wyron, an attorney for the Joppa-based clothing retailer, said the company will use the financing to issue letters of credit to guarantee payments to suppliers.

Merry-Go-Round, which filed for Chapter 11 bankruptcy protection on Jan. 11, normally orders its spring merchandise in mid-November or December, according to company President Michael D. Sullivan.

The $40 million is part of a financing commitment of $125 million from CIT Group of New York.

GM recalling compact pickups

General Motors Corp. is recalling 120,000 new compact pickups that could explode in a side-impact crash. GM blamed the problem on shortcuts taken by the supplier of a fuel system part.

GM learned of the safety defect earlier this month from the National Highway Transportation Safety Administration, which performed a routine side-impact test on one of the trucks.

Owners of the 53,000 trucks already sold are being notified by mail of the recall.

Prudential-Bache settlement OK'd

A federal judge in New Orleans approved a $120 million settlement yesterday for thousands of investors who claim they were defrauded by limited partnerships sold by Prudential-Bache Securities Inc.

The judge's approval of the $120 million deal, along with sale of the partnership's oil property for $500 million, will provide investors with a recovery of 88 cents on the dollar, Prudential attorney Scott Muller said.

The case, involving tens of thousands of investors in energy partnerships sponsored by Prudential-Bache in Louisiana, is part the scandal involving Prudential's sale of limited partnerships to about 400,000 investors in the 1980s.

Japan trade surplus hits record

Despite the yen's steep appreciation last year, Japan's overall trade surplus hit a record $120.40 billion in 1993, up 12.9 percent from the previous year, the Finance Ministry said yesterday.

With the United States, Japan's trade surplus registered a third straight rise in 1993, gaining 15.2 percent, to $50.19 billion, the ministry said.

MicroProse president resigns

MicroProse Inc. President Barry James Folsom has resigned, citing the completion of the company's merger last month with Spectrum HoloByte Inc, MicroProse said yesterday.

Mr. Folsom became president of the Hunt Valley-based maker of computer games as a result of the merger, having previously served as president of Alameda, Calif.-based Spectrum. Patrick S. Feely, MicroProse chief executive, will add the title of president, MicroProse said.

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