The family that owned Swallen's Inc. has entered into an agreement to pay unsecured creditors about $2 million to settle a claim that it had wrongly profited from the sale of the company in 1995.
Rick Nelson, an attorney for the unsecured creditors, said the plaintiffs, which might number in the thousands, will share $1.97 million if the U.S. Bankruptcy Court approves the settlement. Not included in the suit are former Swallen's employees who are seeking damages for roughly $4 million in bonds rendered almost worthless when Swallen's folded.
"The unsecureds will get a recovery in this case," Mr. Nelson said. But "there is no way at the end of the day anybody will be whole." A bankruptcy court hearing is scheduled for Oct. 21. Consumers who are owed by Swallen's can expect to receive notice about the hearing.
The settlement stems from the $4.5 million sale of Swallen's Inc. in April 1995 to an investment group headed by Sharad Buddhev. The retailer went dark soon after, weeks before Christmas in 1995.
Ohio tax incentives under legislative review
Ohio state Senate President Richard Finan, R-Evendale, cautioned Thursday that the state's tax-incentive programs to lure new and expanding businesses are facing increased scrutiny in Columbus.
"The issue now is whether these incentives really work," he told the annual meeting of the nonprofit Institute of Advanced Manufacturing Sciences (IAMS) in Bond Hill. He said one issue is whether tax incentives should be focused on high unemployment areas rather than granted to any new expansion.
Mr. Finan also announced a grant from the Ohio Air Quality Development Authority to help small industrial painting and metal-cleaning companies in the Cincinnati area reduce their hazardous chemical emissions.
The program, a joint effort between IAMS and the city of Cincinnati, will link small companies with larger, local corporations to share information and best practices. As many as 300 companies could benefit.
Medplus repurchases 111,300 shares of stock
Medplus Inc., the Cincinnati-based developer of medical patient records software, said it has recently repurchased 111,300 shares of its common stock in open market transactions. The stock purchases were made under a board of directors' authorization to buy up to 500,000 Medplus shares as market conditions warrant.
"Given the market potential for our products and services, we believe this share repurchase is an excellent investment for the company," said Richard A. Mahoney, president and chief executive.
Rumpke ranks among top 10 in revenue
Waste Age Magazine has ranked Cincinnati's Rumpke Consolidated Cos. Inc. among the top 10 largest solid waste management companies, based on 1997 revenue.
The Waste Age 100 listed Rumpke, based in Colerain Township, as the eighth-largest company with revenue of $229 million.
Because of a consolidation wave sweeping the waste industry, Waste Age ran a second list of rankings of companies operating independently in 1998. Rumpke, which has avoided the consolidation surge to date, moved up two spots to sixth on that listing.
Waste Management Inc., of Oak Brook, Ill., was ranked first on both lists. Before its merger with third-ranked USA Waste Inc. of Houston, Waste Management had $9.18 billion in revenue for 1997. The consolidated companies (now based in Houston) have combined 1997 revenues of $11.79 billion.
