The Akron Beacon Journal from Akron, Ohio • Page 16

ST Akron Beacon Journal Thursday, February 16, 1984C9 3f i i i -1 suit adds to Breakaway entanglement company should be required to call another shareholders' meeting. The petition was filed Monday by Lucille Green of Milwaukee. At 9 a.m. Friday, Summit County Common Pleas Judge John W. Reece is expected to rule on a very similar matter.

The Breakaway and its parent company, National Entertainment Centres filed for protection from creditors under federal bankruptcy laws on Jan. 19. A bankruptcy filing automatically halts all other court proceedings. However, White allowed a special shareholders' meeting, ordered by Judge Reece, to be held on Jan. 29.

people in the Grimes group, but she's not particularly favoring either side." Ms. Green could not be reached for comment. A hearing on her petition has been set for March 4. The first meeting of creditors of the Breakaway is Feb. 28.

Meanwhile, the Breakaway lounge has been reopened by dissidents under a temporary order by Judge White. Robert Holland, who was placed in charge by the judge, said Wednesday that the lounge business has been extremely successful, although not sufficient to cover all the costs of operating the nightclub. By Doug Oplinger 'J Beacon Journal business writer Another lawsuit has been filed that could lengthen the long fight for control of the Breakaway nightclub on East Waterloo Road in southeast Akron. A shareholder from Milwaukee has Med a petition with U. S.

Bankruptcy Judge Harold F. White contending that a recent shareholders' election of directors was improper. The petition contends dissident shareholders appointed by White last week te temporarily run the nightclub subuld be removed from control and the management group that founded the The petition filed Monday asks the bankruptcy judge to allow Ms. Green to file suit in U. S.

District Court on behalf of all shareholders. According to the petition, the proposed suit would charge that there were numerous irregularities at the Jan. 29 meeting. At that meeting, dissident shareholders, who have been attempting to gain control of the company, received the majority of the votes cast. Elmer R.

Grimes president of the company, boycotted the meeting, charging that it violated shareholders' rights. The company's Jawyer, Edward C. Maher, has filed a motion to have the election nullified for most of the same reasons offered in Ms. Green's petition. Maher's motion is expected to be considered by Reece Friday.

If Reece accepts Maher's arguments, the outcome of the meeting would likely be nullified. Otherwise, the dissidents could be confirmed as the new directors. Akron attorney James L. Wagner, who is representing Ms. Green, said the suit is intended to represent all shareholders and would be filed against dissidents and management.

Asked if Ms. Green favored either side, Wagner said, "She originally knew Goodyear dea. with apanese reported near zBar gets custom finish An employee at the North Star Steel Co. plant in Monroe, uses a torch to caster method is commonly used in mini-mills like the one in Monroe. The molten steel comes from scrap that is melted in electric arc furnaces.

called a continuous caster. The bars of steel are cut into specific lengths by automatic torches, and then workers go along and triiii the ends by hand. The continuous finish the end of a steel bar that is being McNeil Akron, Kobe Steel, Mitsubishi Steel of Japan and Krupp of West Germany made bids on the project. A Goodyear spokesman said the company has an obligation to "keep our tire manufacturing operations as efficient and competitive as possible, and, in the one-world market in which we operate, this means seeking the best bids vailable for high-quality machinery no matter where the source is located." AMC plans mid-size car models Associated Press DETROIT American Motors Corp. will enter the mid-size car market by assembling two-door and four-door sedans designed by its French partner, Renault, an industry journal said Wednesday.

Orders for tool-design work will go out this summer to suppliers, the Metalworking News said. The cars will be bigger than the Alliance and its hatchback twin, Encore. The journal said the cars would be built either in Toledo, where AMC builds the Jeep, or in Brampton, Ontario, where it builds the Eagle. The Alliance and the Encore are built in Kenosha, Wis. Metalworking News said one sedan will be brought out as a 1987 model and the other will be introduced a year later.

The cars will be based on the Renault R-25, a front-wheel drive hatchback, it said. Bigger cars carry a bigger profit, and AMC president Jose Dedeurwaerder said on Jan. 4 that the company had no choice but to begin selling bigger cars. AMC spokesman Steve Harris said Wednesday that AMC had no pending plans for an announcement beyond what Dedeurwaerder said then. AMC has planned introduction of another Alliance derivative this fall.

Industry journals have speculated that it will be a station wagon. By Doug Oplinger Beacon Journal business writer Goodyear is negotiating an order with a Japanese company for tire presses valued at more than $20 million, sources in the industry said Wednesday. If the rubber company completes a deal with Kobe Steel Ltd. of Japan, it would be bypassing two companies in the Akron area. Goodyear confirmed it was negotiating with Kobe, reportedly the lowest of five bidders.

Jay Gibney, president of McNeil Akron, said his company would consider two courses of action if it received the order: The company could rehire laid-off workers or it could increase the number of its work orders with local machine shops, creating more jobs in those shops. Gibney said he considers McNeil Akron to be in the running until the contract is signed. One source in the equipment industry said Goodyear had reservations about McNeil's ability to fill the order in a short time. McNeil closed its Akron plant in 1982, eliminating about 400 jobs. All of its machining is now done through independent machine shops.

There are about 100 persons still at McNeil Akron, with nine of those in the warehouse and the rest in salaried positions. ANOTHER company affected is NRM with facilities in Tallmadge and Columbiana. Leaders of the International Association of Machinists, which represents workers at NRM's Columbiana plant, reportedly were incensed at Goodyear's move to buy overseas, but an IAM district representative said he knew of no action planned by the union. William D. Bates, president of NRM, said he was disappointed his company did not get the project, but "Goodyear is a very valuable customer" and he did not want to discuss the matter.

Sources said Goodyear plans to order 130 passenger tire presses for its Kelly-Springfield plant in Tyler, Texas. Kelly-Springfield announced recently it intends to spend about $200 million to convert its bias tire production lines to radial tire output. SOURCES indicated that NRM, -produced from molten metal in what is Pipeline from Medina County planned drawn gas from about 40 wells in Seneca County near the plant but that source is insufficient for long-term needs. THE PROPOSED pipeline would be 70 miles long, cost $5 million and cross parts of Seneca, Huron and Medina counties, as well as two townships in Lorain County. Rights of way have been Officials of American Standard Inc.

plan to meet next week with fcorain County engineer Lawrence McGlinchy to discuss the company's proposed natural gas pipe-fine between its Tiffin plant and gas fields in Medina County. Carl K. Miller, division manager of A-S Energy subsidiary pf New York-based American Standard, told Lorain commis sioners of the project Tuesday. American Standard, which manufactures toilet bowls, wash basins and other fixtures, said it is concerned that Columbia Gas of Ohio can't guarantee uninterrupted delivery of gas to the Tiffin plant over the next decade. Kilns used in the production must be fired constantly.

Miller said the company has obtained in Seneca and Huron. If additional gas is needed, the company could either contract with other well owners in Medina County or drill its own wells, Miller said. Most of the pipeline would be built through privately owned property. The county rights of way would allow the pipeline to cross county roads and other segments of publicly owned land. American Standard will pay the property owners 60 cents a foot for easements.

Miller said the company hopes to complete the pipeline by the end of 1984. American Standard is the largest plumbing and vitreous china manufacturer in the United States. The Tiffin plant is its largest. Other plants are in Connecticut, New Jersey, Louisiana and Toronto, Ontario. ETerex lists new $900,000 loss es for November to $1.6 million.

Terex has been hit hard by a slump in worldwide sales and increased foreign and domestic competition. The firm filed for reorganization Nov. 4 after the financial collapse of its parent, IBH Holding A. G. of West Germany.

The firm bought Terex from GM in 1981. Terex reported total assets of $166 million, including close to $50 million in plants and equipment. General Motors still holds title to most of its property because Terex has missed loan pay- $900,000 in its first month of op-ments on it. Unpaid interest on loans from GM and depreciation pushed loss ITerex Corp. lost more than from creditors under federal bankrupcty law.

-In all, the Hudson-based maker of tractors and other earth-moving equipment had run up more than $112 million in losses by the end of last November, according to new filings by the company in U. S. bankruptcy court in Akron. NEWS IN BRIEF On the move Miscellany Factory Shipments 180 176 170 BilHona of dollar 5ec. fly if 1.

I I 1 WP I I 160 1S5 1981 1982 1983 Reother Koroluk Beacon Journal Shipments from the nation's factories jumped to a seasonally adjusted $186.56 billion in December, according to the Commerce Department. That was up from a revised $181.08 billion in November. Geauga Lake-Funtime posts earnings decline Hit by a $779,000 loss at its Darien Lake park near Buffalo, Geauga Lake-Funtime Inc. of Aurora said Wednesday its earnings for the fiscal year ended last Oct. 31 fell 58 percent to $381,000, or 17 cents a share.

The company had income of $914,000, or 44 cents a share, a year earlier. Geauga Lake Park was profitable. Chief executive Dale Van Voorhis said the Aurora park posted earnings of $1.16 million. Revenues from both parks rose 22 percent to $12.1 million, from $10.7 million a year earlier. Geauga Lake-Funtime acquired a 50 percent interest in Darien Park on March 29, 1982.

In the first year, the New York property yielded a $566,000 profit, largely because there was no factor covering off-season maintenance expenses. Last year, Van Voorhis said, Darien Park faced competition from the reopening of another park In the Buffalo area. Geauga Lake-Funtime will hold its annual -shareholders meeting April 12 at 10:30 a.m. at Geauga Lake Park's administration building. Interstate banking bill offered The Ohio Bankers Association will ask the Legislature to adopt a bill that would move the state closer to nationwide banking.

The bill would permit Ohio banks to expand into states with similar "recip-' rocal legislation." Ohio banks could start banks in states and acquire or merge with banks in other states, provided those states allowed the same options for their banks. DOW JONES DOWN 5 POINTS: The Dow Jones industrial average, up more than 5 points in early trading, was down 5.31 at 1,158.71 by the close Wednesday. Advances held a narrow edge on declines on the New York Stock Exchange, whose composite index dropped .17 to 89.95. Big Board volume totaled 94.87 million shares, against 91.80 million in Tuesday's session. CATERPILLAR STRATEGY: Union representatives from North America and Europe met in Geneva this week to discuss strategies to combat the loss of jobs at Caterpillar Tractor Co.

Caterpillar, the Illinois-based maker of construction equipment, has shed 31,000 jobs since 1980 and now employs about 50,000 workers, the International Metalworkers Federation said. ST. REGIS PLANT MAY BE SOLD: A group of investors evidently has agreed to buy the St. Regis plant in Middletown, Ohio, saving it from closing, a newspaper reported Wednesday. The Middletown Journal quoted an unnamed source as saying the plant apparently will be bought by investors from various parts of the country.

St. Regis said in October that it would close the packaging plant because of continued lack of profitability. TAX RETURNS DOWN SHARPLY: The number of federal income-tax returns filed through the first week of February was down sharply from the same period a year ago, but the Internal Revenue Service said Wednesday it isn't concerned. Through Feb. 3, the IRS had received 1.46 million returns, compared with 2.26 million through Feb.

4, 1983. i y- Karl A. A. Reuther, president and chief executive of Reuther Mold and Manufacturing Co. in Cuyahoga Falls, has added the additional titles of sales and engineering coordinator for the Reuther Mold division.

Walter Koroluk, previously marketing manager, has been named executive vice president and general manager of. the corporation and operations manager of the mold division; and David Landls was named vice president of Reuther Fabrication and Machine. James M. Barry has been appointed manager of dealer relations at Goodyear. John V.

Lund has been named regional marketing director for Havens and Emerson a Cleveland environmental engineering firm. Society expands ATM network Society automated teller machines are getting a new look and joining a wider network of machines. The bank's 75 Superbanking units will be converted into Green Machines during the next week, company officials said, giving Society customers use of another 112 Green Machines operated by Third National Bank of Dayton in southern and western Ohio. Third National is the lead bank of Interstate Financial a bank holding company to be acquired by Society, based in Cleveland. i.