Furlough set for Chrysler plant
For the third time in three months, the Chrysler Corp. assembly plant in Newark, Del., is going on an unscheduled one-week layoff.
About 3,000 assembly line workers will be laid off next week, returning to work June 19.
Nicole Solomon, Chrysler spokeswoman in Auburn Hills, Mich., said the layoff is needed for "inventory adjustment," meaning the automaker has too many cars.
Central won't rescue utility firm
Central and South West Corp. dropped plans yesterday to bring El Paso Electric Co. out of bankruptcy with a $2.2 billion merger, leaving the Texas utility to find another solution to its financial morass.
El Paso Electric had long seen the agreement as its best hope for emerging from more than three years of Chapter 11 bankruptcy protection. Now the utility must look at other options, although there is no clear path in sight.
The company could seek another merger partner, craft a stand-alone reorganization plan or even attempt another deal with Central, said David Wiggs, El Paso Electric's chief executive.
Bell Atlantic price plans OK'd
The Federal Communications Commission gave conditional approval yesterday to Bell Atlantic Corp.'s pricing plans for its pioneering "video dialtone" network in Dover Township, N.J. The action lets Bell Atlantic move forward with its plans to sell capacity on the nation's first commercial network capable of delivering television programs and interactive services over telephone company lines.
While the FCC let the tariff go into effect, it said it would investigate whether the rates fairly reflected the company's costs of providing video service. The inquiry is intended to assure that the company has not assigned too large a share of the expenses to telephone ratepayers.
TBS plans financial network
Turner Broadcasting System Inc.'s board approved plans yesterday to launch a financial news network to compete with CNBC.
The CNN Financial Network is scheduled to begin programming in January, offering live, global market news, business news and analysis.
Speculation that Atlanta-based TBS would create the network already had prompted CNBC President Roger Ailes to say his network would consider striking back with a 24-hour all-news service to do battle with Turner's Cable News Network.
Smith Corona stock falls
Smith Corona Corp.'s stock fell almost 19 percent yesterday on news that it is in default on its credit agreement.
Although the New Canaan, Conn.-based company was continuing to negotiate an amendment to the credit agreement, Smith Corona conceded that there is no assurance it will succeed.
Smith Corona fell 37.5 cents, to close at $1.625 a share, on the New York Stock Exchange.