Reorganization

WOODLAWN -- Nearly 2,000 people helped County Executive C. A. Dutch Ruppersberger raise more than $300,000 at his annual political fund-raiser last night, tickets to which read "Four More Outstanding Years."Many observers expect the Democratic leader to stick to that plan and run for a second term, and he seemed to confirm the expectation last night. Ruppersberger began his remarks by announcing a statewide campaign, then said, "Oops, wrong speech."The two-tiered event featured a private gathering early for $500-per-ticket donors, and a $125-per-person affair later at the Martin's West catering hall.

IN JUST 134 days as mayor, Dean L. Johnson has developed plans for a makeover of city government. His announcement Monday of this municipal reorganization, during the presentation of his first budget to the city council, closed the book on the passive management style of his predecessor, Alfred A. Hopkins.Judging from the breadth of his proposal, Mr. Johnson and his transition team believe they know which parts of Annapolis' government don't work. Offices would be reorganized to eliminate duplication and increase efficiency and accountability.

NEW YORK -- Bondholders fighting Marvel Entertainment Group's plan to merge with Toy Biz Inc. and emerge from bankruptcy won a round in court yesterday when a federal judge ruled that the bondholders could take control of the 80 percent stake in Marvel stock that secured the bonds.The ruling will not take effect until May 23, however, giving Marvel time to appeal.The fight over Marvel, the comic book and sports card company, pits Marvel's board and bank lenders against the bondholders, led by Carl Icahn.

GETTING FIRED is old hat at North Avenue school headquarters."This is the fifth time for me," one of the bureaucrats said last week on receipt of a certified letter from Robert E. Schiller, the interim chief executive officer.When the central administration is reorganized -- which is often -- superintendents and, now, interim chief executive officers traditionally "fire" immediate subordinates and force them to reapply for their jobs or for other jobs in the office. The only difference is that this reshuffling was ordered by Senate Bill 795, the "partnership legislation" that launched the current round of school reform.

Lockheed Martin Corp. yesterday announced a corporate reorganization brought about by the acquisition earlier this year of the the bulk of Loral Corp.On another front, the Bethesda-based defense and aerospace company said it is holding talks with a private defense company in Australia concerning the establishment of a new company.Under the reorganization, Lockheed Martin will retain six business sectors, with three of them reconstituted to incorporate the technical and operational efficiencies of the Lockheed Martin and Loral units.

Leaders of Baltimore County's community colleges -- stung by public criticism amid a cost-cutting reorganization -- have decided to return $25,000 worth of computers and other equipment that were purchased with public funds and placed in the homes of eight trustees.College officials said yesterday that the equipment will be returned to classrooms."It seems we were talking about the issue at every board meeting, people asking questions about the computers," board Vice President Bruce J. Chaillou said yesterday.

In June 1994, the new, four-bedroom house on a quiet cul-de-sac in Odenton seemed a perfect fit for Tolano and Cathy Anderson. It had a deck, finished basement, bay windows, upgraded carpet, jumbo soaking tub and a garage.It even came with a warranty against defects -- or so the buyers from Texas thought.This spring, the Fort Meade Army aviator and his wife, a state data security manager, discovered something in common with neighbors who had bought homes in the Seven Oaks development from C. C. Building Corp.

Despite a healthy sales increase in the week before Easter, Merry-Go-Round Enterprises Inc. has decided to delay its exit from bankruptcy proceedings, perhaps until fall, and may close dozens more poorly performing stores.The Joppa-based national retailer said yesterday that it will miss its June 30 target for obtaining a judge's confirmation of its plan to emerge from the Chapter 11 bankruptcy process. The reason: lenders need more evidence that Merry-Go-Round can earn money before they'll finance a reorganized company.

NEW YORK -- The Japanese company that controls Rockefeller Center has decided to auction a majority stake in the bankrupt New York landmark.In papers filed Friday in bankruptcy court, the owner asked for a 60-day extension of the period during which it has the exclusive right to present a plan of reorganization. That will give it time to either hand the property over to its creditors or seek bids for the office and retail complex.The owner, two partnerships controlled by Mitsubishi Estate Co., has until today to present a plan to the U.S. Bankruptcy Court for the Southern District of New York.

In a reorganization expected to save Baltimore about $572,000 a year, Mayor Kurt L. Schmoke is cutting back the Bureau of Water and Wastewater by eliminating four divisions and eight managers, beginning July 1.The bureau is the last of four in the Department of Public Works to be restructured in an effort to reduce costs. Six top and mid-level managers will be laid off, and another two will retire with the reduction of the bureau from seven divisions to three, said Public Works Director George G. Balog.

CHICAGO -- The parent company of The Baltimore Sun and its creditors are in the early stages of negotiating a plan of reorganization in U.S. Bankruptcy Court that sources said likely would transfer control of the troubled media conglomerate from Chicago billionaire Sam Zell to a group of large banks and investors that holds $8.6 billion in senior debt. The plan is still taking shape, the sources said, and much could change as negotiations continue. But the general contours of a new capital structure for the Tribune Co. are coming into focus, and the plan centers on a debt-for-equity swap that probably would give the senior lenders a large majority ownership stake in the reorganized company.

Middle River-based cosmetics provider Jane & Co. filed for Chapter 11 bankruptcy protection Monday in federal court in Delaware. The Baltimore County company said it faced "significant cash liquidity issues" because of declining consumer spending amid an economic crisis. Jane said it has obtained financing from a senior secured lender that will allow it to continue operations. The company, which reported $25 million in annual revenue, listed assets of between zero and $50,000 and liabilities of $1 million to $10 million, according to electronic court documents.

Fieldstone Mortgage Co., the Columbia subprime lender that filed for Chapter 11 last year in the midst of the nationwide credit crunch, has received a three-month extension to submit its reorganization plan. Last week, James F. Schneider, a judge in Baltimore's U.S. Bankruptcy Court, extended Fieldstone's deadline through June 20. It initially was due March 22. In a court filing, the company said it needs the extra time to continue negotiations with parties interested in buying its assets or participating in the reorganization.

CHICAGO -- Three years after United Airlines announced it was embarking on a period of "profound and agonizing change," the bankruptcy reorganization plan for the nation's No. 2 carrier won court approval yesterday. And it was agonizing: More than 25,000 workers lost jobs, those remaining suffered huge wage and benefit cuts and shareholders watched their stock become worthless in the longest and most expensive airline bankruptcy in history. Despite the pain, "I think there is a reason to feel good about this plan," U.S. Bankruptcy Court Judge Eugene R. Wedoff said in making his ruling.

United Airlines has now targeted mid-January for its exit from bankruptcy, meaning it will miss its goal to emerge in 2005 and will pass a third anniversary operating under court protection. The airline is expected to file its reorganization plan with the bankruptcy court in Chicago today. Last week, it filed a proposed plan confirmation schedule that would culminate with hearings the third week of January. Those hearings are expected to take several days. The No. 2 carrier had hoped to leave bankruptcy protection this fall, but meeting such a schedule proved overly optimistic when the filing of the reorganization plan was delayed last month at the request of creditors.

United Airlines efforts to emerge from bankruptcy may be delayed until next year, the airline said yesterday as it announced another delay in the filing of its long-awaited reorganization plan. The airline, which began setting and breaking dates nearly two years ago to emerge from bankruptcy protection, agreed to the delay requested by a committee of unsecured creditors so they could review the plan. The 13-member group, which represents the airline's hundreds of unsecured creditors, reportedly has been studying the proposed plan for about a month.

WASHINGTON - Barely two years after its creation, the Department of Homeland Security is about to undergo an extensive reorganization that will affect everything from the Federal Emergency Management Agency to the government's much-mocked, color-coded terrorism alert system. The shake-up is expected to be announced in a speech today by Secretary Michael Chertoff, who ordered a management review shortly after taking over the 183,000-employee department in February. The reorganization calls for a redesign of the top rung of the department's leadership and will make significant changes affecting the department's intelligence wing, border security division and FEMA, according to current and former department officials.

2nd-time dad seeks short paternity leave Q. I work for a company too small to come under the Family Leave Act. My wife is due with our second child any day now. Other than using all my vacation/sick leave, what are my options for taking a small, extended leave to help her during her recovery? J.J., Baltimore A. A large and growing number of private companies provide leave to fathers upon the birth of a child. Parents employed by the state of Maryland are granted up to 30 days of paid leave to take care of a newly born or adopted child.

W.R. Grace & Co., the Columbia-based chemical maker pushed into bankruptcy by asbestos lawsuits, said yesterday that it expects to be indicted by a federal grand jury in connection with asbestos contamination in Libby, Mont., where it once mined vermiculite that contained the hazardous fibers. The company had disclosed last month that it was the target of a government investigation involving possible obstruction of federal proceedings, violations of federal environmental laws and conspiring with others to violate federal environmental laws.

Magellan Health Services Inc. of Columbia, the nation's No. 1 mental health insurer, emerged from bankruptcy yesterday. "It will be easier for the company to compete for business now that we are formally out of Chapter 11," said Erin S. Somers, a Magellan spokeswoman. The completion of the reorganization will also allow management to focus time and attention on development and growth, she said. When the company filed for reorganization in March, it was providing mental health benefits for about 68 million people.