N.J. sues Mutual Benefit
Mutual Benefit Life Insurance Co. executives pumped about $1 billion into bad investments and payments to themselves while some nationally prominent executives on the board let it happen, New Jersey charged in a lawsuit yesterday,
The charges are contained in a lawsuit the state Insurance Commissioner filed in New Jersey state Superior Court against Mutual Benefit of Newark, which the agency seized in July 1991 to stop a run on its cash by panicked investors and pension funds. The suit, seeking unspecified damages, names as defendants 13 former employees, 10 former directors, a Rhode Island law firm and the company's auditor, Ernst & Young.
GAO report criticizes RTC
The Resolution Trust Corp. could have better planned and managed real estate auctions held last year in the Washington-Baltimore area, the General Accounting Office said in a report released yesterday.
The agency sold 101 assets with a book value of $43.8 million through these auctions in April and May 1992 and realized net proceeds of $19.2 million. "The RTC should have provided more complete and accurate asset information, allowed potential buyers more time to conduct due diligence and better prepared the assets for sale," said the GAO, Congress' investigative arm.
Euro Disney expects quarterly loss
Euro Disney SCA, which operates Euro Disneyland near Paris, said it expects to report a third-quarter loss of about 500 million francs, or $88 million.
Euro Disney expects to post a loss in the latest year, according to yesterday's statement, which did not give a specific projection. The third-quarter loss would boost its losses so far this fiscal year to 1.58 billion francs, or $277 million.
USAir raises fall fares
USAir Group Inc. said yesterday that it raised its 14-day advance purchase fall fares as much as 20 percent on many transcontinental flights, as well as Northeast or Midwest flights to Florida.
USAir said the fares would be raised 10 percent to 20 percent over its summer sale fares through Dec. 15. It said the new fares are 30 percent higher than similar fares offered last fall.
Nike posts 9% increase in profits
Sneaker marketer Nike Inc. said its profit rose 9 percent in its fourth fiscal quarter and 10 percent for the year.
Chairman Phil Knight said he expects a seventh consecutive year of rising profits this year. For the three months that ended May 31, Nike earned $76.9 million, or $1 a share, up from $70.7 million, or 92 cents a share, a year ago. Revenue for the quarter climbed 16 percent to $983.3 million from $847.6 million.