Reno Gazette-Journal from Reno, Nevada • Page 26

10B Friday, August 26, 1983 Gazette-Journal Gaming officials act to protect Riviera's employees judge usually has control over a casino's finances, leaving gaming regulators on the sidelines. However, in the Riviera's case, the Gaming Control Board is working with the judge to assure protection of the employees. Control Board members are under a directive from state Gaming Commission Chairman Paul Bible, who said during a meeting last week that he wanted a policy to deal with cases like the Mapes, "while we have the time," before another big club falls into bankruptcy. Asked about the Riviera throwing in the towel before that policy was formed, Bible said, "I think what I said at the commission hearing is sufficiently evident. I expect them to develop a policy and I'm sure that's under way." Avance said it was, but the Riviera is getting his special attention.

He said the board learned "a costly but valuable lession with the Mapes," and that it has a good relationship with the bankruptcy judge. "We do not anticipate any problems," he said. "We've leda lot through the problems with other payroll, but Riklis said Wednesday he didn't envision many layoffs. He also said he did not plan to sell the resort. State Gaming Control Board Chairman Jim Avance said Thursday agents are monitoring the Riviera's cash flow to make sure there is enough money in the casino to back outstanding wagers.

But he said the resort is solvent. Avance said a couple of small casinos have filed for bankruptcy since the Mapes fiasco last December. He added there were no problems in either of those cases, although the Riviera is much larger. Last December, the Mapes and Money Tree casinos suddenly closed, leaving nearly 500 employees out of work and without two weeks' pay. The closing left a number of questions about the two operations, the most important being whether it had an adequate bankroll.

The clubs should have had about $500,000 on hand, which would have covered outstanding wagers as well as employees' pay. But it didn't, and that revelation stunned the state's gaming enforcement establishment. Gaming Control Board members admitted at the time newly licensed casinos are bound to maintain adequate bankrolls, but established clubs aren't. Another problem is that under law, the bankruptcy Phelps Dodge still hiring replacements for strikers PHOENIX (AP) Some striking copper workers may be put on a "waiting list" for their old jobs Dut hundreds will be left out of work, Phelps Dodge orP- officials say, as the company continues to "replacements in the eight-week-old walkout. The copper producer says its operations will be up to full capacity by Saturday.

Meanwhile, Pima County sheriff's deputies arrested eight men and two women in Ajo on riot, highway-obstruction and other strike-related charges, Deputy Steve Ross said. They were being held in lieu of $15,000 bond each. Dozens have been charged in connection with picket-line activities since the walkout began after contracts with steelworkers and 11 other unions ended July 27. Negotiators for both sides met Thursday to dis-; cuss the unions' counterproposal to a company plan to save $51 million by deleting cost-of-living increases and various job and medical benefits. of the counterproposal were not released.

Chief union negotiator Alex Lopez called the union pffer "very generous." Court to consider bidding issue SAN FRANCISCO (UPI) The state Supreme Court agreed Thursday to decide whether auction-: eers can bid for their own property to jack up sell-I ing prices. i f. Reno-headquartered Nevada National Leasing Co. sued Lee Hereford for refusing to pay for two backhoes and a trailer he bought at a November J976 auction. Hereford had learned that auctioneer Cliff Schick allowed the company, represented by William Linke, to bid on property it never intended to purchase.

Steel companies to raise prices WASHINGTON United States Steel Corp. and Bethlehem Steel the industry giants, Thursday announced they would raise by 7 percent the price of sheet steel, the major metal in automobiles and appliances. bankrut He savVbe JSnKs following all its legal require ments in ftyJhf prinff IhfcRiviera. Lovo'g briutiful, but not in BOSTON (AP) in ti board room standing, these women are eCk i ujers ill an creating new Drotlercs tot business as women By KEN MILLER State gaming regulators, still leery about last year's financial collapse of the Mapes and Money Tree casinos in Reno, are moving to protect the bankrupt Riviera Hotel-Casino's 1,500 employees. In a move that could set a precedent if other large casinos file for bankruptcy, state lawyers met with a Las Vegas bankrupcty judge Wednesday and Thursday to discuss the Riviera.

The Las Vegas Strip resort filed a Chapter 11 bankruptcy petitition Wednesday to allow time to restructure its debts. The decision stalls foreclosure by the Riviera's largest creditor, the Nevada Public Employees Retirement System. PERS claims the Riviera has defaulted on its $56 million loan, which totals closer to $70 million with interest. The Riviera hasn't made a payment to the $1 billion private fund since January. In announcing the bankruptcy filing, Riviera Chairman Meshulam Riklis vowed to sink $1 million into the club immediately, and $10 million a year for the next 10 years if necessary.

PERS denied Riklis' request to lower the 17 percent rate on the Riviera loan. The Riviera spends about $2 million a month on its Attorney gets state OK to buy Landmark LAS VEGAS (UPI) Attorney Bill "Wildcat" Morris was granted state approval Thursday to buy the space-needle-shaped Landmark Hotel-Casino for $18.4 million if an Ohio federal bankruptcy court approves the deal. Morris said he would begin operating the 450-room hotel Sept. 1 and said eventually the resort would be expanded to 1,100 rooms. The Landmark, located one block east of the Las Vegas "strip," has been operated by Toledo, Ohio, court-appointed trustee Patrick McGraw in recent months after owner Zula Wolfram was ordered to surrender her interest.

Mrs. Wolfram's husband has pleaded guilty to defrauding his Toledo brokerage firm of $47 million and the Wolfram investment in the Landmark must be sold to make up some of the brokerage company losses. Morris, a former University of Nevada regent, told back-to-back meetings of the Nevada Gaming Control Board and Nevada Gaming Commission Thursday he expected the Ohio U.S. Bankruptcy Court judge to approve the transaction Aug. 30.

The Control Board imposed six conditions upon Morris, including Ohio bankruptcy court approval. Morris also must post a bond to cover a two-week payroll and maintain a casino bankroll yet to be established by the Control Board. The $18.4 million purchase price includes $4.2 million to the bankruptcy trustee, $4.2 million to buy out Passport Travel of Kansas City, which owns 18.7 percent of the Landmark, and Morris assumes a $10 million debt owed to Summa Corp. Mrs. Wolfram purchased the Landmark from Summa the holding company for the late Howard Hughes, in 1978.

Morris initially is borrowing $7.5 million from Nevada National Bank climb the corporate ladder, says a Harvard Bust- neas Review editor who thinks companies should treat aftairs of the tcart between their executives as conflicts of interest. upc-aing sue of fee Harsrd Busi ness ix Cclins wares that love affairs between executives csn ruin careers, disrupt the organization's power structure and even cause domestic problems for other employees. "It's disruptive on difterent levels," says Ms. Collins. "At the very least it is very disruptive of jfefaraal communications networks.

It affects thejcoupie's pecn respond to them." vTese affairs can have sus a widespread eet-pa a 'company's opertaocs that Ms. CoKins sug- ctsstt the less vafci" of the two lovers leave the corcpany. In ces, that means the woman, she says without Oboratlng. attair rather than the object of aWexuai fling. Bat such relationships can cause jitters among other workers.

they fancy themselves as proteges, they will see any redirecton of the executive's affection as a loss, Ms. Collins writes. "They win be jealous and angry and feel abandoned. To alleviate these feelings, they'll politicize them and assert that the affair disrupts the social order1 The company's informal communication network may also break down as workers choose sides. There will be fewer gripe sessions and less honest dialogue.

The affair may also affect the home life of other -executives especially If one or both of the lovers are married. 'Wtaen executives of a company and their spouse get together on social occasions and the lovers appear, couples whose marriages are shaky can became anxious and angry." Ms. Collins savs these affairs create bier head- The announcement was the third price increase by a major industry in as many days. The Washington Post T'U way are goitre to both stay in the organiza Las Vegan signs casino lease LAS VEGAS (UPI) Veteran Las Vegas casino operator Jackie Gaughan this week signed an 18-month lease with an option to buy the now-closed Gold Spike Hotel-Casino downtown. Gaughan signed an agreement Wednesday with Nevada Savings and Loan to lease the seven-story, 100-room hotel and casino located at Fourth and Ogden streets and said he would take a look at the profit potential before deciding whether to purchase the property.

tlMi, fc jewther if going to pat aches for top officers who face the options of get-l IF'6 mere stress," ting involved In their employees' personal lives. sys. Uth parfcr will in to IxJleve what- Wa. Collins recommends that managers confront sr ptcpie went E-rirj raU is wing sex the problem from a business viewpoint, treating fcs a way of advancEstect sod that he is Just hav. an affair between two executives as a conflict of big a midlife dalliance, 1 interest.

ColHns cites four examples of corporate 'Managers should make the lovers see that they 1 love without naming the companies or people, cannot Be objective in business decisions when involved. In each case, she said the women even- someone they love might be hurt by its outcome, tuatly left the firm and married their com pan- Ms. Collins suggests companies issue state- tons, bus uw nappy enauuzs omen louowea lotuz. menu or noiicv that view executive affairs a hitter periods of Interoffice gossip and backbit Bally to buy firm's game assets Collins says the incidence of such problems business conflicts and warn that the lower-rank- ing person must go T'No matter how much everyone understands the beauty of a love relationship, it can't survive if the less valuable person stays," Sega Enterprises Sega's Japan-based com is growing as more and more women join the executive ranks. With better education and soda pany, is not affected by the transaction and will continue its manufacturing and arcade opera tions.

T-Bills Coming Due? Dean WiUercan keep the 'breakup jfrom brealungup your stock. GUARANTEED RATE PAID MONTHLY C3 NEW YORK (AP) Gulf Western Indus- tries Inc. said Thursday it agreed to sell the domestic coin-operated game assets of its 90 percent owned Sega Enterprises Inc. to Bally Manufacturing Corp. Financial terms were pot disclosed.

Barry Diller, president of Gulf Western's entertainment and com-munictions group and chairman of Paramount Pictures, said the companies also agreed to jointly establish a research and development unit. The products would be manufactured and distributed in coin-operated games by Bally and in consumer games by Sega. Diller said the deal would capitalize on Bally's strength in manufacturing and distribution while allowing Sega to concentrate on the creative and development aspects. Robert Mullane, president of Bally, said the agreement "will enhance the position of Bally in the coin-operated amusement game The deal is subject to the writing of a final contract and approval of the companies boards of directors. Gulf Western said it expected to complete the deal by next week.

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