Thursday, October 7, 2004
Business digest
International flights United's new focus
Wire/staff reports
CHICAGO - As part of its bid to emerge from bankruptcy, United Airlines announced plans Wednesday to slash its domestic flight schedule, increase its more profitable international schedule and reduce the size of its fleet over the next six months.
United's parent, UAL Corp., said that by March, it would increase the number of international flights by 14 percent and reduce domestic flights by 12 percent, shifting some to United Express.
The changes would result in a 3 percent overall decrease in available passenger-seat-miles.
Holiday World plans new water park in '05
SANTA CLAUS, Ind. - The Holiday World amusement park will expand its Splashin' Safari water park for next summer, park officials announced Wednesday.
A groundbreaking ceremony was held for construction of a new wave pool, called Bahari, that will be first phase of the $6.3 million project at the park 40 miles east of Evansville.
"Bahari is Swahili for 'immense sea,' and that sums it up," Holiday World president Will Koch said. "Bahari's size will be nearly twice that of The Wave, the wave pool we added in 1994."
The 6-acre expansion also will include a new food outlet.
Milacron offers 'right' to buy new shares
Milacron Inc. said Wednesday it will sell up to 16.3 million new shares in a "rights'' offering to existing shareholders starting Oct. 18.
In about two weeks, the maker of plastics-making equipment said, it will send all shareholders subscription certificates for the right to buy the new shares along with an offering prospectus.
The rights offering was negotiated as part of the company's $100 million in new equity obtained in the spring. Each right is exercisable for one share of common stock at $2 per share. Milacron's shares closed Wednesday at $3.75, up 23 cents.
Winter reconnection order goes in effect
The Public Utility Commission of Ohio on Wednesday issued its annual winter heating reconnection order to electric and gas utilities to help customers who are behind on their utility bills.
Customers who have had service disconnected for nonpayment can have it restored one time over the winter if they pay the amount owed or $175, whichever is less, plus a reconnection fee of no more than $20.
Utilities are required to reconnect service the same day if payment is made by 12:30 p.m., or the next day if payment is after that time. Customers who use the program must also sign up for a payment plan to pay off any unpaid balance on their accounts. Last year 190,000 customers used the reconnection order, the commission said.
Another Enron official admits to conspiracy
HOUSTON - A former Enron Corp. assistant treasurer has pleaded guilty to conspiracy, admitting lying or withholding pertinent information from credit rating agencies so the energy giant's financial picture appeared healthier than it was.
Timothy DeSpain, 39, entered the plea Tuesday and has agreed to cooperate with the government in Enron investigations. He is the 15th person to plead guilty in the Enron investigation.
DeSpain told U.S. District Judge Ewing Werlein he complied with direction from his bosses - Jeffrey McMahon in 1999 and early 2000 and then Ben Glisan Jr. through November 2001 - not to discuss the extent of some shady financing deals. Glisan and McMahon were treasurers for Enron, which collapsed in December 2001.
Las Vegas' Frontier for sale, with a catch
LAS VEGAS - The Frontier hotel-casino, perhaps one of the most coveted and likely pieces of property to be redeveloped on the Las Vegas Strip, is for sale to potential buyers who can meet the steep price and conditions.
Billionaire Phil Ruffin said he has turned down about a dozen offers from suitors looking to build a new megaresort on the 38.5-acre property near one of the most desirable corners on the Strip.
"The Frontier would be available for development, but I have to be involved in it," he said.
"We have already turned down $20 million an acre," Ruffin said.
Ruffin estimates the Frontier's land is worth $700 million to $800 million.
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