The Cincinnati Enquirer from Cincinnati, Ohio on October 19, 1991 · Page 15
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October 19, 1991

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The Cincinnati Enquirer from Cincinnati, Ohio · Page 15

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Cincinnati, Ohio
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Saturday, October 19, 1991
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EDITOR: JACK SEAMONDS, 369-1962 THE CINCINNATI ENQUIRER SATURDAY, OCTOBER 19, 1991 B-7 i) Amex stocksB-8 Mutual fundsB-8 D) NASDAQ selectB-10 0 NYSE stocksB-9 Portfolio Comair plans purchase of 20 jets 3100 3050 3000 2950 2900 MM N.Ky. not among 4 United finalists Wilkinson withdraws incentives 2850 LJULmIULJ U U J 8 9 10 11 14 15 T5l7 18 Oct Dow Jones 30 Industrials Daily highs, with closes at arrow tip Area-Interest stocks In industrial average (NYSE change from previous day) AT&T -18 GE-18 P&G-18 Cincinnati Stock Exchange volume Friday 1,646,900 Action means longer flights, 300 new jobs BY JEFF HARRINGTON The Cincinnati Enquirer Cincinnati-based Comair Holdings, one of the fastest-growing regional airlines in the country, has inked a $350 million deal to enter the jet age. The carrier Friday announced the planned purchase of 20 new Canadair regional jet aircraft with an option to buy another 20 planes beginning in 1993. The decision means an additional 300 jobs along with quieter, longer flights. "We now (fly) as far as Memphis to the west, Washington, D.C., to the east and to the south, Birmingham," said Chuck Cur-ran, Comair's senior vice president of marketing. With the Canadair agreement, "we'll be able to reach all major U.S. cities east of the Rockies." New alliance The deal is a first for both Comair will buy 20 new Canadair regional jet aircraft with a seating capacity of 50. state's incentive package: "We clearly -told them the process is out of hand. We will not continue this auction, this bidding war." With Louisville and Cincinnati International, Kentucky was the only state in the competition with two finalists. Despite Wilkinson's comments, United spokesman Joe Hopkins said Louisville has not been eliminated yet. A final decision could come any day or, as it has done before, United could reopen the race. West argues that if Louisville is still alive, Cincinnati International has a shot. He notes that the now-tenuous Kentucky package of incentives worth about $250 million was identical for both. Cincinnati, however, never matched Louisville's local incentive package: roughly $50 million cash plus a free site with improvements. Joe Kramer of the Greater Cincinnati Chamber of Commerce said the Tristate apparently wasn't "desperate enough" to compete with states offering unheard-of tax incentives and cash to United. BY JEFF HARRINGTON The Cincinnati Enquirer Northern Kentucky refuses to take no for an answer from United Airlines or Kentucky Gov, Wallace Wilkinson. CincinnatiNorthern Kentucky International Airport Friday was scratched off the list of finalists for a $1 billion United maintenance center, but local development officials say the fight isn't over. "I'm going to tell you straight up, I'm not throwing in the towel yet," said Jim West, director of Tri-County Economic Development Corp., which promotes development of Northern Kentucky. West said he met with Cincinnati's new economic development director, Quentin Davis, and is pursuing talks with the state of Ohio to beef up the local incentive package for United. Friday morning, United said it had whittled its list of 11 sites down to four: Indianapolis, Oklahoma City, Denver and Louisville's Standiford Field. That was after Governor Wilkinson late Thursday said he was withdrawing the a dozen new cities will be served, Curren said. Other than Comair's current service to Toronto, he would not identify which flights will be converted to jet service nor potential new markets. However, he said, the "kinds of cities" that would be candidates include Omaha, Des Moines and Oklahoma City,. About 75 of the jets would be used for Comair's Cincinnati operation; the remainder, for its secondary hub in Orlando, Fla. New destination Also Friday, Comair announced the Dec. 15 startup of non-stop Cincinnati service to Charlotte, N.C., and more flights to GreenvilleSpartanburg. Comair is in the midst of an expansion of its Cincinnati hub, one fueled by Delta's dramatic growth. The "Delta Connection" carrier feeds passengers into larger Delta flights out of Cincinnati and Orlando. Curren outlined a trio of benefits: Sound: The jet has gotten high marks as one of the quietest airplanes on the market, inside and out. Stretch: Comair's current turboprops have a limited flying range of up to 500 miles. With the introduction of jets, its range goes up to 1,200 miles. Size: Fifteen years ago, Comair relied on eight-passenger planes. Today, the bulk of its fleet is 30-seaters and, with Friday's development, it shifts more into the 50-seat range. By comparison, the smallest plane operated by Delta Air Lines, Comair's larger local partner, has 120 seats. Comair is phasing out its remaining 15- and 19-seat planes before delivery of the first jets begins in November, 1992. Once completed, its fleet will consist of 50 30-seat Brasilias, 19 50-seat Saabs and 20 Canadair jets. Between 1993 and 1995, up to Canadair and Comair: the first jet service for Comair and the first North American customer for Canadair. One of the smallest of the new regional jets, the 50-seat Canadair craft is powered by GE Aircraft Engines' CF 34-3A1 turbo-fan engines, produced in GE's Lynn, Mass., plant. The engines for all 40 planes are valued at $150 million. Refinancing away debt worries Federated seeks OK 17 on plan Dow enhances record high close The stock market pushed ahead to a new high Friday, recovering from Thursday's mild setback in an advance led by blue chips. The Dow Jones average of 30 industrials climbed 24.15 points to 3,077.15, extending its gain for the week to 93.47 points. After it rebounded from Thursday's 8.72-point loss, the average easily surpassed the record close of 3,061.72 it reached Wednesday. But broader measures of stock price trends showed less emphatic gains. Advancing issues outnumbered declines by about 5 to 4 on the New York Stock Exchange. Big Board volume came to an estimated 204.72 million shares as of 4 p.m. EDT, against 202.78 million at the same point in the previous session. Delta routes approved The Transportation Department Friday approved Delta Air Lines' purchase of most Pan American World Airways routes across the Atlantic and beyond. In a final order on one of the largest route transfers in aviation history, the department said the $416 million sale was in the public interest. Delta plans to begin service from New York Nov. 1 and from the other cities involved Nov. 2, Delta spokesman Neil Monroe said. The transaction includes all of Pan Am's routes between New York, Frankfurt, Germany, and about 20 other cities in Europe, as well as authority to serve the Miami-London market. The hub in Frankfurt also includes service into the Middle East and other areas. Banc One shines in Texas Banc One Corp. said Friday that it intends to complete its acquisition of Bank One, Texas, by buying the remaining shares owned by the Federal Deposit Insurance Corporation for $387 million. Banc One said it would buy the remaining 61 of Bank One, Texas, owned by the FDIC. The purchase will be completed Oct. 28. The Columbus, Ohio-based bank holding company will fund the purchase with the proceeds of Banc One's loan to the FDIC for the original purchase of the stock. The FDIC repaid the loan in the third quarter of this year. Little Rock paper sold The Arkansas Democrat Friday bought the Arkansas Gazette, and employees were told the oldest continuously run newspaper west of the Mississippi had published its last paper. Employees at both papers were told that Friday's edition of the 172-year-old Gazette had been its last. They were told that a merged newspaper, the Arkansas Democrat Gazette, Would be published beginning today. Walter E. Hussman Jr., publisher of the Democrat, announced the purchase at a news conference. Moe Hickey, publisher of the Gazette, was unavailable for comment, his secretary said. The Gazette's owner, Gannett Co. Inc., of Arlington, Va., said it sold the paper for $69 million to Little Rock Newspapers Inc., a subsidiary of Wehco Media, which is controlled by Hussman. The Enquirer is a Gannett newspaper. Compiled by Dick Benson from staff and news service reports ftp p4j Disclosure statement hearings to begin BY JOHN J. BYCZKOWSKI The Cincinnati Enquirer Federated and Allied stores Tuesday hope to scale one of the final hurdles in their race to emerge from bankruptcy, but as of Friday, it was still unclear whether that could be done. Hearings begin Tuesday in U.S. Bankruptcy Court in Cincin- 1 nati to approve Federated's disclosure statement the document that will tell creditors what they need to know to either ac r cept or reject Federated's plan to Homeowners locking in on falling rates BY JEFF McKINNEY The Cincinnati Enquirer With seven mouths to feed and only one income, Carla Anne and Jerry Hemphill were trying to figure out a way to reduce their monthly bills. So the Mount Healthy couple decided to take advantage of the falling rates in Greater Cincinnati by refinancing their mortgage. The Hemphills pulled equity out of their home to reduce debts. The Hemphills are typical of many Tristate homeowners who are refinancing mortgages and using the equity to pay off debts like credit cards, cars, college tuition and home improvements. By refinancing, the Hemphills reduced their bills to about $600 a month, compared with about $1,000 a month previously. They plan to use the savings to apply for a government-backed home-improvement loan. The Hemphills took out $16,000 worth of equity to pay off a credit card, a used van and a second mortgage. They refinanced a $40,000 mortgage with a $69,000 loan based on a higher appraisal of the property. They took out a 30-year fixed rate Federal Home Administration loan that charges 8.5 compared with 9.5' on the previous loan. "We wouldn't have been able to make the improvements before because we were struggling to pay bills," Carla Anne Hemphill said. She and her husband, Jerry, an order assembler at Kroger emerge from bankruptcy. Federated's so-called "final" disclosure statement was filed with the court Oct. 7, but Friday, The Cincinnati EnquirerDick Swaim the company still was negotiating final points with creditors. Robert Clockwise, from left: Jerry; daughters Nikki, 13, and Candice, 7; son, Ian, 5; Carla; and sons Aja, 1 0, and Jordan, 3, gather for their evening meal in Mount Healthy. Co.'s warehouse in Woodlawn, Raskin, attorney for owners of $1.3 billion in Federated junk bonds, said his group still is negotiating its settlement with the company and said he didn't know whether the issues could be settled by Tuesday. The retailer, in reorganization under Chapter 11 of the U.S. Bankruptcy Code since January, 1990, came to this hurdle once before and couldn't clear it. Negotiations were so intense in mid-September that in one hearing, attorneys for creditors told fixed-rate mortgage and taking out equity also convinced Dale Nerl to refinance the $70,000 mortgage on his Eastgate home. Nerl is using the equity to pay off the balance on his car. By refinancing, Nerl also can save money by not paying long-term interest on a car loan, interest that is no longer deductible. "Taking out the equity is a personal decision, but you also have to remember you can pay off whatever you want," Nerl said. and property. Take Bob and Bonnie Hahn of Symmes Township for example. The couple was able to draw about $25,000 in equity when they refinanced their $170,000 mortgage. The Hahns plan to use the equity to buy older homes, fix them up and sell them at a profit. The Hahns decided to refinance their mortgage with a fixed-rate loan because their previous mortgage had a graduated payment with an adjustable rate that was about to increase a percentage point. Being able to lock in to a lower have five children. Area lenders say refinancing can be beneficial to homeowners because it allows many people to .cut their monthly mortgage payment and use equity to get rid of bills which might be loaded down with high interest rates that are no longer tax-deductible. Mortgage interest is deductible. Michael Bowen, president of Midas Mortgage Co., said he has had several clients who refinanced to take advantage of the equity. He said people also use the extra money to buy stocks Judge J. Vincent Aug Jr. that they Housing starts slump 2.2 in Sept. Measurements didn t know which document they could talk about. Were they to refer to the disclosure statement they had filed with the court? Or a new one the company had circulated among creditors just days earlier that contained many changes? Federated asked for more time to complete negotiations with its creditors groups, setting the stage for Tuesday. But will the same arguments be heard that creditors can't discuss a document that hasn't incorporated recently negotiated points? "In reality, you may hear some of that," said David Heiman, Federated's bankruptcy attorney. "But the last time, we were still truly negotiating, and this time, . . . there's certainly still some mechanical issues (being negotiated), but we believe we're much further along." CG&E earnings down Cincinnati Gas & Electric Co. sold more electricity to retail customers during the third quarter, but overall sales and profits declined. The utility said Friday that retail sales of electricity were up 6.3 compared with the third quarter of 1990 but that total electricity sales were down 4.4 because of reduced sales to other utilities. More earnings reports, Page B-10. Cincinnati Gas & Electric Third quarter 1991 1990 Chg Revenues $350.8 $342.6 2.3 Net Income $50.9 $62.4 -18 Per share 60 $1.09 -27 Twelve months 1991 1990 Chg Revenues $1504.9 1462.4 3 Net Income $237.9 $235.4 1 Per share $3.96 $4.17 -5 Figures In millions sxoept psr-share earnings. Home Builders Association of Greater Cincinnati. In Northern Kentucky, 103 permits were issued for housing starts in Boone, Kenton and Campbell counties in September, vs. 98 in September, 1990, the Home Builders Association of Northern Kentucky said. Nationally, the Commerce Department said housing starts totaled a seasonally adjusted annual rate of 1.03 million. That was down from 1.06 million units in August. The report followed other government statistics showing flat industrial production; falling exports; and weak spending by THE CINCINNATI ENQUIRER and ENQUIRER NEWS SERVICES Construction of new houses and apartments fell 2.2 nationally in September, heightening concerns that the economy is in for a second dose of recession, while in Cincinnati, construction rose in the period. The Commerce Department said Friday that the number of housing starts last month was 87,800, compared with 93,100 in September, 1990. Locally, the number of permits issued for housing starts in Hamilton, Butler, Clermont and Warren counties in September totaled 362, compared with 341 in September, 1990, according to the The three basic indicators that gauge the housing industry locally and nationally (with their latest figures): Existing homes: Homes that have been occupied and resold. Nationally, the number of units sold was 321 ,000 in August, compared with 344,00 In August, 1990. The September report will be issued Friday. New homes: Homes that have been sold for the first time by a real estate agent or builder. Nationally, the number of units sold In August was 540,000, compared with 525,000 In August, 1990. The September report will be Issued Oct. 29. Housing starts: Brand-new homes that are being built. The number of homes built nationally In September was 87,800, compared with 93.100 In August, 1990. The October report will be issued Nov. 18.

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