Reno Gazette-Journal from Reno, Nevada • Page 30

8B Thursday, November 8, 1984 Reno Gazette-Journal Chevron. Gulf cut nrices Bankruptcy hearing Dec. 11 on 2 area projects they'll pay for crude oil 117 7rnv nan iwu more on companies announced cuts in the prices they will pay for domestic crude Wednesday, joining a spreading move that analysts said already has led to lower prices for gasoline and heating oil. Since mid-October, when oil prices began tumbling on world markets, the average price of a gallon of gasoline has slipped about three-tenths of a cent in the United States, and further reductions are likely, analysts said. Meanwhile, Canadian officials said Canada's Cabinet was still reviewing proposed reductions in that nation's export fees for light grades of crude oil.

Martin McAIister, a spokesman for the National Energy Board, said reports Tuesday that the cuts of. $1.33. a barrel had been approved were erroneous. Chevron Corp. and its Gulf Oil Corp.

subsidiary said in separate announcements Wednesday that they each had lowered the their posted price for West Texas Intermediate crude oil, the U.S. benchmark blend, by $1 a barrel to $29. At the River Inn, Capital City Savings and Loan holds a secured loan of $5 million, plus $1 million in interest is owed. Unsecured creditors' claims total $13 million. Welsh, however, estimates the true value of the unsecured claims is anywhere from $3 million to $8 million because many claims are repetitive.

In addition, many of the claims have been disputed. Judge King also has been asked to decide the value of these liens. And to make things even more complicated, the outcome of a local district court case this fall will determine the positioning of these claims. In district court, T.M. Cheng, the owner of the land beneath the River Inn, Capital Savings and the unsecured creditors are all suing each other to decide "whose liens are ahead of whose," Welsh said.

Welsh said it is uncertain what role this case will have in King's decision. In any case, he said title must be cleared before the River Inn can be sold. On the Double Diamond property, Nevada National Bank holds a first deed of trust securing a $5 million loan. Three out-of-state savings and loans are in second position with- a $6.5 million secured loan. And Capital Savings holds a third loan secured by the Double Diamond as well as the River Inn for $5 million.

In the event of a foreclosure, a Nevada National Bank official said, Capital Savings has made it clear it would pay off the first and second loans to hold the property. Mogul strip. If Judge King turns down the offer, he is expected to lift the bankruptcy order on the Double Diamond so that its secured creditors can foreclose. Nevada National Bank, which holds a first mortgage on the property, asked the court to lift the order in August. But King granted England more time to find a buyer and the trustee submitted Fleming's offer just before the deadline last Tuesday.

At stake in the Dec. 11 hearing will be the interests of dozens of local contractors, material suppliers and other creditors of the River Inn, a redwood casino palace on the Truckee River Benny kept redesigning. Benny, a Hungarian immigrant, is now serving prison time for one of the biggest real estate swindles on the West Coast in recent times. He was sentenced to 30 years in March for mail fraud and racketeering in cheating lenders out of $40 million in financing his properties in Reno, Las Vegas and San Francisco. Any return to contractors and other unsecured lien-holders on the River Inn is pinned to the sale of the Double Diamond and Benny's other properties, Welsh said.

There is little, if any, unemcumbered value in the River Inn improvements and the Double Diamond property represents the largest unencumbered property in Benny's estate. If the secured lenders foreclose on the ranch, there would be nothing from it for the unsecured creditors. By SUSAN VOYLES U.S. Bankruptcy Judge Lloyd King is expected to decide the fate of the Double Diamond Ranch and the River Inn at a hearing in his San Francisco courtroom Dec. 11.

Although the judge could postpone a decision, he is expected to either allow a sale of the sprawling Double Diamond Ranch south of Reno or allow its secured creditors to foreclose. And if the lenders foreclose, there would be little left in George Benny's estate for his dozens of creditors, including many in Reno, said Craig Welsh, an attorney for John England, bankruptcy trustee for Benny's properties. England has an offer before the court from the Jack Fleming Corp. to buy Benny's ranch, the leasehold interest in the River Inn casino and spa as well as 30 to 40 acres adjacent to the "casino near the Mogul exit off Interstate 80. Fleming, a successful Los Angeles real estate developer, has offered $30.5 million for Benny's three properties in Reno, far less than the $47.2 million he originally offered last year but withdrew after his investment group fell apart.

But he now has a new investment group from Los Angeles, Welsh said. Fleming's offers for the Reno properties have been the only ones presented to the court. His $30.5 million deal includes $24 million for the Double Diamond, slated for development, $3.5 million for the River Inn and $3 million for the Major banks shave prime Carl's Jr. moving into Texas ANAHEIM, Calif. Carl Karcher Enterprises parent of the Carl's Jr.

restaurant chain, on Wednesday announced its first major move aimed at more than doubling its size in the next six years. The firm said it had reached a franchise agreement for a partnership led by an Orange County businessman to open 30 Carl Jr. restaurants in Houston and Fort Worth, Texas, by 1990. The selection of the partnership is the firm's biggest franchise deal since last year, when it started franchising its operation. Terms were not released of the of the deal with the partnership, which was led by Ronald Birtcher, head of Birtcher Pacific of Laguna Niguel.

Currently, the company has about 400. restaurants, virtually all of them in California, Arizona and Nevada, including two in the Reno-Sparks area. of Cartoon Station in ner CARTOON CHARACTERSiJim ow Tasmanian Devil. Park Lane Mall, Details in Business the interest rates his bank will charge for home and auto loans. "I think consumers will be borrowing at a point or two less than they would be six weeks or so ago." A sign of still more reductions was the fact that the federal funds rate charged on reserves lent overnight between banks fell to 8.75 percent early Wednesday from 9 percent earlier in the week and from double-digit levels most of the summer.

In addition, the Federal Reserve Board's policy-setting committee opened a two-day meeting Wednesday amid widespread expectations that it would allow the money supply to grow faster than it has in recent months. Such a step could allow the economy, which has experienced a sharp slowdown in the second half of the year, to grow more vigorously, but it would also decrease the cost of money. Chapin said there is probably more likelihood of additional drops in the interest rate than an increase. But he cautioned that the rate is unlikely to fall more than another percentage point before it levels and begins drift' ing upward. Several analysts, expecting an easier stance by the Federal Reserve, forecast further cuts in the prime to 11.5 Eercent within weeks and to 11 percent early next year.

WASHINGTON Several major banks cut the prime interest rate from 12 percent to 11.75 percent Wednesday, the fourth time in six weeks that banks have dropped their benchmark lending rate and a possible harbinger of still lower rates by the end of the year. Wednesday's move, initiated by New York's Citibank, the nation's second largest bank, had been expected after weeks of reductions in the short-term interest rates that banks must pay to obtain funds. Quickly following suit were New York's Chase Manhattan, the nation's third largest, and First National Bank of Chicago, the seventh largest. Other smaller banks, such as First Union Charlotte, N.C., also joined in. In fact, Southwest Bank in St.

Louis cut its prime lending rate to 11.75 percent rate on Tuesday. The prime, the benchmark by which banks set interest rates on most of their loans, had been at 13 percent as recently as late September before beginning its current decline. Richard Chapin, executive vice president and chief financing officer for the First Interstate Bank of Nevada, said the drop in the interest rates will translate into lower borrowing rates for consumers. "I suspect we will make another adjustment downward," Chapin said of Coke's, Pepsi's moves to corn syrup hailed Rumor spurs run on New York bank NEW YORK Lines of more than 800 depositors snaked through Manhattan's Chinatown Wednesday in a run on the United Orient Bank sparked by an unsubstantiated rumor of its imminent collapse. Armored trucks from the Federal Reserve shuttled to the bank to replenish the supply of cash demanded by the depositors.

Sixty police officers were stationed along the bank lines and guarded the bank doors, letting one person inside for each one that left. The rumor followed a hearing two weeks ago by the President's Commission on Organized Crime, in which United Orient vice-president Edward Chan was named as a leader of the Chinese underworld. On Chinatown street corners, United Orient bank employees handed out Chinese-language leaflets that offering a $100,000 reward to anyone who could give information about who was spreading the false story. WIRE SERVICE REPORTS vice president and assistant to the chairman of Archer Daniels Midland Co. And at A.E.

Staley Manufacturing a spokesman said Tuesday that fructose "is now a mature industry" and the predictions of industry analysts have been fulfilled. Coca-Cola Co. and PepsiCo Inc. announced Tuesday that they would raise to 100 percent tfye amount of corn syrup they allow their bottlers to use as a sweetener in their cola drinks. DECATUR, 111.

(AP) News that the two largest cola companies have authorized 100 percent use of corn syrup means fructose has emerged into "a mature industry," says one of the world's biggest producers of the syrup. The cost-cutting action will boost the amount of high-fructose sweetener used by the two soft-drink companies and their bottlers already the biggest users of corn syrup. "This is good," said Richard Burket, Tim 323-2388 3795 Mill St. MF8-6 SAT 8-4 hist wmm ui PL EN DALE MILL 5 1 MILE EAST OF M.Q.M. a MaoimtosM HTil! Ill I Ujmnml jiiiiiiiii.jj 1 in cr ffiWflB)SS( ALL-SEASON STEEL-BELTED RADIALS KELLY SIIOWMARK PS POLY Sun Ae taiAinL" off Yawn? HM(B.

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