Hartford Courant du lieu suivant : Hartford, Connecticut • Page 22

i ii nimiiniixKi 1st cd BOTH SIDES 2nd cd. C2 THE HARTFORD COURANT: Wednesday, April 10, 1991 Channel 18: A chronology Channel 18 had 37-year history mi Hartford. Here are some of its major events: Aug. 4, 1954: WGTH-TV, Channel 18, signs on the air and becomes Hartford's first television station. With headquarters on Asylum Street the station was owned and operated by General Teleradio and the Hartford Times.

Feb. 23, 1956: WHCT-TV, Channel 18, becomes a CBS affiliate and the state's first subscriber television station. June 1 1960: The ownership of the station is transferred to RKO General. Feb. 16, 1972: The station's license is assigned to Eugene Scott's Faith Center Inc.

in Glendale, Calif. All of its programming is broadcast to Hartford viewers via a feed from California. Jan. 25, 1985: Astroline Communications Co. purchases Channel 18 from Faith Center for $3.1 million, under the controverial Federal Ccommunciations Commission minority-preference policy, which allows a troubled company to sell a television station in a "distress sale" to a qualified minority buyer.

Richard Ramirez, who is Hispanic, becomes managing general partner. Alan Shurberg, a Rocky Hill computer consultant, sues the FCC, arguing that the FCC minority-preference policy illegally denied him the right to bid on the station. April 30, 1985: New offices and studios open on Garden Street in Hartford. Sept. 30, 1985: Channel 18 goes on the air with locally produced programming and 500,000 watts of power.

Feb. 1, 1987: A new transmission tower is erected on Avon Mountain with 3.2 million watts of power. Dec 1, 1988: Channel 18 files for protection from its creditors under Chapter 1 1 of U.S. bankruptcy laws after major creditors forced it into court, seeking to recover $1 1 .6 million in debts. May 12, 1989: Terry Planell is appointed general manager of WHCT-TV, Channel 18, replacing Ramirez, who moved out of state.

Ramirez maintains his responsibilities as managing general partner. June 27, 1990: U.S. Supreme Court rules in favor of Channel 18 in the lawsuit brought by Shurberg. April 9, 1991: U.S. Bankruptcy Judge Robert L.

Krechevsy orders WHCT-TV, Channel 18, liquidated, under Chapter 7 of the U.S. bankruptcy laws. A trustee is appointed to oversee the liquidation. State banks top list for bad loans Continued from Page CI its of $15.9 billion. That was up slightly, by $390 million, or 2.5 percent, from the profits reported for the year ending Dec.

31, 1989. Of the nation's 12,323 banks, the firm said 87 percent were profitable and reported total earnings of $23.5 billion at the end of 1990. Banking losses of $7.6 billion were recorded. Sheshunoff said the commercial banking industry nationwide closed the year with $217.7 billion of equity capital, the difference between assets and liabilities that forms the financial cushion banks rely on in tough times. That was up 6.5 percent, or $13.4 billion, from the total reported by the commercial banking industry at the end of 1989.

But nonperforming loans rose 25.5 percent from the end of 1989 to $77.7 billion at the end of 1990, or 3.7 percent of all loans outstanding, the study said. The report said loan loss reserves, the pool banks use to protect themselves against bad loans, rose nationwide by only 3.2 percent, to $54.9 billion, or 2.6 percent of all loans outstanding. In New England, the firm said only 133 of the region's 258 banks, or 52 percent, returned a profit in 1990, Judge orders liquidation of WHCT-TV, Channel 18 Rhode Island seeks U.S. aid for deposit insurance system Continued from Page CI legal and financial problems. It was purchased under the FCC's controversial minority-preference policy, which allows a troubled company to sell a station to a qualified minority buyer.

Alan Shurberg, a Rocky Hill computer consultant challenged the policy in court. Shurberg, who is white, contended in a lawsuit that he was illegally kept from bidding on the station because of the FCC policy. Richard Ramirez, who is Hispanic, was Astroline's managing general partner. He lives in California now and is not involved in the day-to-day operations. The case went to the Supreme Court, which ruled in Astroline's favor in June 1990.

But by then, the station's legal problems had taken its toll on its finances, in one of the most competitive television markets in the nation. Thomas A. Gugliotti, a Hartford lawyer for Astroline, said the judge's decision was postponed several times by the station and the creditors, as they tried to come up with a compromise, including an unsuccessful bid to sell the station in August 1990. "It is a loss for Hartford," he said. Earlier Tuesday, the station's 30 employees attended a meeting at which Planell informed them of the bad news and gave them their final paychecks.

The employees were told they could leave if they wanted to. But about a dozen Astroline em Associated Press WASHINGTON Rhode Island's governor and senators pleaded Tuesday for a federal bailout of the state's private deposit insurance system, saying the state has been plunged into a financial crisis even worse than it suffered during the Great Depression. Gov. Bruce Sundlun, a Democrat, shut down 35 credit unions and 10 banks on New Year's Day after the private Rhode Island Share and Deposit Indemnity Corp. collapsed.

Twenty-seven of the institutions have since reopened with federal insurance, but 12 others remain closed with their depositors' accounts frozen. The rest either have liquidated and closed or paid off depositors and converted to loan-origination offices. "People have lost money set aside for weddings, had burial accounts frozen, lost homes and businesses," Sundlun told the Senate Banking Committee. "Every day, heartbreaking appeals come to my office. Terminal cancer patients whose last days are burdened by worry, frantic parents Citytrust Inc.

losses exceed $64 million Continued from Page CI "Clearly we're looking to raise; capital from any source," Doetzel said. "We do have some people who' are interested in investing in the bank" Lewis Mandell, a University of; Connecticut finance professor and former bank regulator, said troubled banks can obtain financial assistance from the government two basic ways. Banks can seek outright capital infusions from regulatory agencies like the FDIC, Mandell said. Banks also can borrow money from the Federal Reserve at the federal discount window at low rates, he said. While it is not unusual for banks to borrow from the federal discount, window, troubled banks sometimes become increasingly reliant on this source.

Mandell said regulators' response to the Citytrust request could help define the government's feeling about the "too big to fail" theory. Under that hotly contested practice, some regulators have said some large banks should not be allowed to fail because it could harm the local economy. Others call the practice unfair to smaller, troubled banks. With $2.1 billion in assets, City-trust is neither huge nor small, Mandell said. Regulators' response could underscore their feelings about what size of a bank is "too big to fail." "We're in a new area of defining bank regulation," Mandell said.

James E. Moynihan managing director of Advest Northeast bank division, said that with New England's economic problems deepening, many more banks probably will seek government aid this year. New Hampshire's five largest banks are seeking capital infusions to relieve fiscal problems, Moynihan said. He predicted that 20 more banks in New England will require some form of assistance this year. Shulansky has said he is working on a capital infusion plan for troubled Connecticut banks.

Citytrust has also asked regulators for forebearance from memoranda of understanding signed in 1990 that directed the bank to strenghten collection procedures, reduce bad loans and increase loan-loss reserves. The company also said it has executed final agreements with institutional investors to restructure $31 million in long-term debt. Pending regulatory approval, the agreement would return $23 million to the company by eliminating some debt. Company officials said the fourth quarter review took extra time because significant deterioration of the real estate market in late 1990 led to a high level of problem loans. Citytrust increased its provision for losses by $32 million because to cover potential problems.

The bank's bad loans and other non-performing assets totaled 18.4 percent of total assets, Doetzel said. The company loss of $64,474,000 for the fourth quarter is equivalent to $15.04 per share. The loss of $58,543,000 in the fourth quarter of 1989 is equivalent to $14.09 per share. The company's loss of $122,602,000 for the year is equivalent to $29.15 per share. In 1989, the net loss of $84,771,000 was equivalent to $20.41 per share.

David N. Giguere, staff writer for the Stamford Advocate, contributed to this story. AVAILABLE METAL CUTTING COMPANY wDUCTILE IRON DISTRIBUTORSHIP Land, Building, etc. DON BREWER 523-1978 1 lease. building available immediately.

Prestige Park I Masonry and steel construction 1 100 sprinklered I Zoned for heavy industrial use (I-3) I Heavy-duty concrete floor in warehouse Here are the states whose banks Alex Sheeunoff Co. says had the highest level of nonperforming or bad loans as a percentage of gross loans at the end of 1990. The list also includes the District of Columbia. State Percentage Connecticut 10.38 District of Columbia 8.57 Massachusetts 8.02 Rhode Island 7.11 New York 6.60 New Jersey 6.28 New Hampshire 4.98 Arizona 4.63 Louisiana 4.28 Maine 4.25 the firm said. Loan growth also was reported to have stagnated nationwide, with commercial loans dropping off by $5.8 billion, or 1.13 percent, to $508.5 billion during 1990.

Nonperforming commercial loans increased slightly to $36.3 billion, by 4.2 percent, to 4 percent of all commercial loans outstanding. Loans to individuals dropped $1.3 billion nationwide, or .34 percent, to $382 billion, while nonperforming loans to individuals rose 17.9 percent, to $5.5 billion, or 1.4 percent of all outstanding loans. Real estate loans were the only source of loan growth, the report said, increasing by $61.8 billion, or 8.6 percent, from December 1989, to $781.6 billion at the end of 1990. Nonperforming real estate loans, though, rose 60.1 percent to $35.9 billion, or 4.5 percent of all outstanding real estate loans. seeking funds to fly to critically injured children across the country, desperate victims of home and business foreclosure.

From my office, it is not a pretty sight," he said. More than half the state's one million people have been affected, Sundlun said. "Not even in the Great Depression has any state been so impacted by the failure of a financial institution," he said. Sundlun is backing legislation, sponsored by Sen. John Chafee, It would make a $500 million pool of federal money available for low-interest loans to states whose private deposit insurance systems collapse.

No more than $150 million could be loaned to any one state and repayment would be required in 10 years. Chafee acknowledged that the plan was in the words of Sen. Christopher S. Bond, R-Mo. "a little bit of a bailout." But, he said, "without some type of federal assistance, Rhode Island is in danger of becoming an economic catastrophe." of reserves will be sufficient, Budd said.

The company, which has confirmed more than 700 layoffs last year, is "continuing to look at every aspect of our operations to make them more efficient," Budd said. "We do not know whether that will mean layoffs." Travelers has an annual turnover of about 4,000 employees and hopes that the resulting vacancies can absorb workers whose own jobs may be eliminated, Budd said. Richard H. Booth, president and chief operating officer, reported that Travelers' personal lines, which include auto and homeowners' insurance, will at least break even this year unless there are unusual natural catastrophes. Last year, Travelers lost $27 million on that segment.

Stockholders rejected a proposal by Washington, D.C., shareholder Evelyn Y. Davis to make Travelers disclose more executives' salaries than it does now. But a little more than 15 percent of the shares voted at Tuesday's meeting were cast in favor of the proposal a bit better than the 13 percent in support at last year's meeting. For 37,000 square-foot freestanding East Hartford, I Air-conditioned office 1 22-foot clear ceiling height with white reflective deck. 1 5 loading docks I On-site parking I Rail spur with loading docks Roundup I REGION Stable buyer sought BOSTON Massachusetts' new Bank Commissioner, Michael C.

Hanson, said Tuesday he did not care if a buyer for Bank of New England was from the region or not, as long as it was stable. "I think it's in our interests that a healthy, well-run bank be the winner in the bidding process," Hanson said, minutes after being sworn in by Gov. William F. Weld at the Statehouse. On March 29, three major banks submitted bids to take over the failed bank: Bank of Boston BankAmerica Corp.

of San Francisco, and FleetNorstar Financial Group Inc. of Providence. NATION Bilzerian barred WASHINGTON Paul Bilzerian, former chairman of Singer faces forfeiture of millions of dollars in alleged illegal profits following another courtroom defeat, the Securities and Exchange Commission said Tuesday. The agency announced it had won a court order barring Bilzerian from future securities law violations such as those for which he was convicted after a criminal trial nearly two years ago. The latest decision, rendered Monday in Washington, D.C., set the stage for the SEC to seek more than $30 million in profits it said Bilzerian earned illicitly from stock deals.

Trump condos NEW YORK Developer Donald Trump announced plans Tuesday to convert most of the swank Plaza Hotel into luxury condominiums, a move that could cost his ex-wife Ivana her job running the posh Fifth Avenue landmark. Trump also reached a final agreement Tuesday on a restructuring of the debt at his glitzy Taj Mahal casino in Atlantic City. A conversion of the Plaza would bring Trump about $750 million. Ecomomic optimism WASHINGTON Seventy percent of the nation's top economists believe the U.S. economy will pull out of the recession during the current quarter, according to a survey released Tuesday.

"Seven of 10 of the 51 economists responding now say the recession will be over by April, May or June with nearly equal votes for each of those three months," wrote Robert G. Eggert, editor of Blue Chip Economic Indicators, the Sedona, newsletter that conducted the survey. From staff and wire reports cuts back efficiency rebates Continued from Page CI at the old rates for applications submitted by the end of the month for work scheduled before the change took effect. Taylor attributed the heavy demand to the slowdown in the economy, promotion by electrical contractors and electricians and the success of the four-year program in convincing business customers to install more energy-efficient lighting. "With the slow economy this has really been the only game in town for the electrical contractors and electricians," Taylor said.

At the same time it lowered the rebates, the company made other changes in the program sought by the contractors, such as requiring installation work to be done by licensed and insured electricians. "Contractors might feel a drop in business because the incentives, the dollar amounts, have been changed," said Louis Acampora of Madison, president of the 200-member Connecticut Electrical Contractors Association. "The customer has to come up with more money out of pocket. It is going to mean finding another approach to promoting it." When the rebate program was developed nearly four years ago, the focus was selling customers on the new lighting technology. Large rebates were offered to convince them to install the equipment.

As acceptance grew and customers needed less incentive, the rebates have been reduced. "The mission isn't to get the company in the light bulb business but to get the market moving in that direction. The program was paying too much to achieve something market was already doing," said Eugene M. Koss, acting state consumer counsel. The utility is also considering changes in other commercial and residential conservation programs which have exceeded their budgets, but not to the extent of the lighting rebate program.

"We are going to cut back a little on our promotional activity in some programs, but not turn customers away," Taylor said. Earnings AMERICAN BANK CONNECTICUT 1st aurWr tndrt Mar. 31 1991 1990 Nrt Incwn SI. 1m tl.Sm Per Share M.SI M.rt Att SMI. 9m SJM.Im kni) tlM.lm SMI.Sm Dptltt MM.tm tlM.lm Travelers gets mixed reaction Retailer says deregulation fueled economic problems ployees mingled about the station, saying their goodbyes to each other, making plans to get together and promising to stay in touch.

Others employees dismantled the main set and a handful of them were busy taking care of other last minute details. Outside, the station was abuzz with activity as reporters and television cameraman interviewed employees arriving and leaving. Planell said the employees should be proud of doing their best. "We are turing over the checkbook to the trustee with money in it. It's just an unfortunate situation between the creditors and the owners." Sheila Graham, program and marketing manager said "we believed in what the station was trying to accomplish.

Due to situations beyond the staff's control, we weren't able to fulfill the programming goals we had been working towards." After the Archdiocese of Hartford had its last morning Mass broadcast Tuesday morning, employees began removing equipment from the station. "One of the things this station has been committed to is serving the needs and interests of the community," said Rev. John P. Gatzak, Archdiocese of Hartford director of the office of radio and television. "Even with the financial problems, they were more concerned with the community.

It is very sad. The community of Connecticut will be the losers." nomic turmoil they've endured in recent years, Davidson said. And their attitude has a direct impact on retailers and other businesses that depend on consumer spending, he said. Davidson, whose company operates and Weathervane clothing stores throughout the East, said he disagreed with some economists who predict that the current recession will end this summer. "No way will consumers have better jobs and more confidence," he said.

"People are trying to avoid spending money because, quite frankly, they don't have it." He said like other companies that depend on consumer spending, has cut costs to try to weather the economic storm. He said the company is working to strengthen its men's clothing and women's sportswear businesses at its stores. The New Britain company also is refining the mix of women's clothing sold in its Weathervane stores, Davidson said. "The industry is precarious, because of the consumer," he said. "There are consumers with less money and less ability to get good jobs.

W. Joseph Campbell Mary Agnes Carey Cyndie D. Greer Joanne Johnson Susan E. Kinsman Pamela Klein Diane Levick Louts J. Coidan Business Editor Lynne B.

Maston Lawrence B. Rasie Michael Remez Robert Weisman Stephen Williams Freelance proposals should By PAMELA KLEIN Courant Staff Writer Deregulation of American industry is a root cause of today's economic problems, a New Britain retail executive told the Hartford Area Business Economists Tuesday. Philip T. Davidson, co-chairman of Venture said deregulation has "increased the opportunity for a monopoly in this country. Prices get established with less competition, and consumers are getting less service." Speaking at the economists' monthly lunch meeting in Hartford, Davidson said deregulation also prompted a wave of mergers and acquisitions during the 1980s, leading to excessive corporate debt and massive layoffs as companies tried to cut costs.

Many of the people who lost their jobs have not been able to find new ones at comparable wage levels, Davidson said. That has contributed to a shrinking of the middle class and an increase in the number of people working for low or minimum wages. It is no wonder, then, that many consumers are pessimistic about the future, considering the eco fib (infant Continued from Page CI "Shouldn't the kind of sophisticated managers who command such high salaries and benefits have noticed this oversupply and not gotten overextended?" Trowbridge said. Edward H. Budd, chairman and chief executive officer, said the shrinking operations of other corporations around the country had reduced demand for office space.

And Travelers' mortgage borrowers were squeezed financially by banks that tightened up on credit, he added. Budd said he knew Travelers' dividend cut would hurt shareholders, but that it would give the company $80 million a year more in capital, the financial cushion needed to protect policyholders and to grow. "The additional capital puts the company in a better position to earn long-term returns and to protect the security of our contract policy holders," Budd said. Meanwhile, Travelers is managing its real estate investments carefully and is deciding to sell or hold properties based on their long-term value, Budd said. "We're not liquidating any property at fire sale prices," he said.

In a news conference Tuesday, Budd added, "We think the real estate environment is going to continue to be difficult on into 1992, so we don't see any improvement in that market." Travelers believes the $1.1 billion Manufacturing, foreign trade, economy Inside Business Appointments, calendar, new business, corporate facts Banking Utilities Retailing Insurance How can we help you? We Invite readers to write, call or visit to share their opinions, ideas for news stories and letters to the editor. The business-news office is located at 285 Broad Hartford, and is open Monday through Friday from 9 a.m. to 5 p.m. Telephone: 241-6736 or toll-free, 1-800-524-4242, Ext 6736. Louis J.

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