Banner Graphic, Volume 22, Number 217, Greencastle, Putnam County, 15 May 1992 — Page 2
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THE BANNERGRAPHIC May 15,1992
FBI visits King office; denies raid occurred
NEW YORK (AP) The FBI sent two agents to the offices of boxing promoter Don King “in connection with an ongoing investigation,” a bureau spokesman said today. The spokesman, Joe Valiquette, would not disclose the nature of the investigation or the reason for Thursday’s visit to King’s offices. TWO NEWSPAPERS had reported that federal agents confiscated computer disks and financial records in a “raid.” The Daily News said the agents were thought to be from the FBI, the Internal Revenue Service and the U.S. attorney’s office. The New York Post said agents had been warned by King employees that the documents and disks might be destroyed by the promoter. But Valiquette said nothing was taken from King’s office and the
Banner Graphic (USPS 142-020) ConaolMation 01 Th* Daily Banner tatabHahed 1850 Th* Herald Th* Dally Graphic Eat»bliabedlße3 Telephone 653-5151 Pubiiahad daily eacept Sunday and Holidays by Banner Graphic, Inc. at 100 North Jackton St., Greencaatle, 1N.46135. Second-class postage paid at Greencastle, IN. POSTMASTER: Send address ; changes to the Banner Graphic, P. O. Box 509, Greencastle IN 46135. Subscription Rates Per Week, by carrier 31.40 Per Week, by motor route .$1.45 Mail Subscription Rates R.R. IN Rest of Rest of Putnam Co. Indiana U.S.A. 3 Mouths $21.00 $23.00 $25.00 6 Months $40.00 $45.00 $50.00. 1 Year $78.00 $86.00 $85.00Mail subscriptions payable in advance ... not accepted in town and where motor route service is available. Member of the Associated Press The Associated Press is entitled exclusively to the use for republication of all the local news printed in this newspaper. Steve Hendershot General Manager/ Marketing Director Eric Bernsee .... Editor Wilbur C. Kendall . Production Manager Gib Farmer .... Business Manager Jun* Leer Circulation Manager
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MIKE TYSON ‘He never stole from me’
two FBI agents were not accompanied by other agencies. He said there was no federal search warrant. He said they went on official business “in connection with an ongoing investigation, which we cannot disclose the nature of.” VALIQUETTE SAID the two stayed and hour “and left with nothing.” The agents went to the office a day after a former King financial officer offered more details to his previous allegations that King had defrauded former heavyweight champion Mike Tyson. The Daily News reported the IRS is interested in King’s practice of paying foreign fighters, primarily Julio Cesar Chavez of Mexico, a token portion of their purses in the United States and the rest in their native country as “foreign rights.” THE NEWSPAPER said the IRS also is believed to be looking into the hundreds of thousands of dollars worth of personal gifts Tyson gave King as possible income tax or gift tax evasions.
Service Glass 1104 N. Jackson 653-9452 Ambler Hill Aorists 100 Walnut Corner (corner of Jackson & Walnut St.) M-S 8-5, Sun. 1-5, 653-8737 Feld’s Carpet Place 653-4881 1023 Ave. B, Greencastle AJ.’s Sports & Nora Jane s Bootery Downtown Greencastle Wal-Mart Putnam Plaza, In. 240 & Rnd. Barn Rd. 653-2481 Mon.-Sat. 9 a.m.-9 p.m. Sun. 12:30 p.m.-5:30 p.m.
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DON KING Mike Tyson’s handler
The agents were especially interested in check stubs marked “Project Zorro,” according to the Post, which said the King reportedly used the project as a slush fund. Sources were quoted as saying the promoter would not tell even his own accountants what the disbursements were for. The raid was the latest in a flurry of legal activity surrounding the promoter. IN AN AFFIDAVIT filed Wednesday with the New Jersey State Board of Control, King’s former comptroller charged that the promoter repeatedly ordered Tyson to pay sanctioning fees beyond those required by the WBC, WBA and EBF. Joseph A. Maffia’s affidavit charged that King ordered sanctioning fees of 5350,000 per fight for Tyson’s bouts with Frank Bruno, Carl “The Truth” Williams and Buster Douglas. In each case, Maffia said, the legitimate sanctioning fees were less than that Bruno fight, $236,500 for Williams and $319,000 for Douglas.
Eitel’s Flowers & Gifts 653-3171 17 S. Vine St., Greencastle Daily 9-6, Sunday 1-5 Horizon Business Center 16 N. Jackson St., Greencastle 653-2681 Gould’s Market S. Jackson St., Greencastle Central National Bank 1 Central Square 653-4161 Putnam Plaza Branch 653-8778 Morrison’s Tire Inc. 317 N. Jackson IBM (Lexington) Employees Federal Credit Union 13 Putnam Plaza, 653-9731
The world’s largest developer seeks bankruptcy protection
LONDON (AP) Olympia & York, the world’s largest development company, said today it has filed for bankruptcy protection for some of its properties in the United States and Canada while the Torontobased firm struggles with more than $lB billion in debt. A Canadian judge late Thursday granted the company’s request for protection from its creditors to give it time to reorganize. IT WASN’T immediately clear how the move might affect the developer’s massive global holdings including Manhattan’s World Financial Center, Toronto’s First Canadian Place, and other skyscrapers from London to Dallas. Die news sent prices lower on the London and Tokyo stock markets. In New York, the market reaction appered muted. After about 40 minutes of trading today, the Dow Jones industrial average was down 6.64 points at 3,364.93 on the New York Stock Exchange. THE MOVE Thursday was a severe blow to the prestige of Olympia & York Developments Ltd. and a dramatic illustration of the severity of the worldwide property recession. At a news conference here, the company said Olympia & York Developments Ltd. and four of its Canada-based companies have filed petitions in New York for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code. That filing covers the U.S. assets of the Canadian businesses, and not its U.S. holding company Olympia and York (US) Holdings Co. and other U.S. operations, it said. BUT THE COMPANY said
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its main filing was in Canada and covered Olympia & York Developments Ltd. and 28 other companies in the group. The main filing was made in Canada because of the “complexity and diversity of all the creditors” to the Canadian operations, senior adviser Steve Miller said at a London news conference. Die company did not disclose its assets or liabilities. But Miller said the filings covered about a third of the group’s operations. HE SAID THERE would be no “fire sale” of Olympia and York assets. He said no one particular credit problem led to the bankruptcy filing. “It was rather the complexity and the multiplicity of them that led to this decision,” Miller said. “It will permit more time t® focus on the long-range issues.” Miller said he was confident the U.S. operations could stay out of bankruptcy court because their financing was “much less intertwined and isolated on a building by building basis.” He described the bankruptcy protection as an umbrella. “IT’S LIKE WALKING down the street, you notice it’s raining. You open the umbrella and you keep on walking,” Miller said. Burdened by $12.2 billion in real estate debt and an extra $6 billion in other units, Olympia & York couldn’t keep up with payments on a number of loan and bond deals that unraveled as its office towers lost tenants and huge projects drained away cash. O&Y President Gerald Greenwald confirmed the bankruptcy proceedings in a statement late Thursday, saying the moves “represent an appropriate step in Olympia &
Three bad years closes Alexander’s
NEW YORK (AP) Crippled by three years of losses, Alexander’s closed its 11 department stores today, filed for federal bankruptcy protection and announced plans to sell off its ALEXANDER’S Chairman Robin Farkas said the 64-year-old company’s losses reached S4O million over the last 24 months “and were projected to continue.” He said the stores would reopen for going-out-of-business sales. retail business is not viable, and there is little prospect of turning it around,” he said. The company’s 11 stores in the
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Tzouanakis Intermediate School PTO wishes to thank the following individuals and businesses for contributing to the success of our Spring Festival. We couldn’t have done it without you! Domino’s Pizza, Walden Inn, S & H Trash Disposal, Handy’s Dairy, Wal-Mart, Kroger, Marsh, Wendy’s, McDonald’s, Hardees, Varsity Lanes, Brackney’s, Hook’sdowntown and east, Main Event, Putnam Inn, Jackson’s McQuik’s, Horace Link, Sears, Paper Magic, Eitel’s, AJ.’s, Ace Hardware, Brad Phillips, Trish Arthur, Brad Hayes, Paul Willhouse, Jon Hinnefeld, Mayor Mike Harmless, Country Smiles clowns, Cloverdale Vol. Fire Dept.-Charlie Roach, Greencastle Fire Dept., Richard Neuman, Video Express, Greencastle Photo Supply, Jackie Hall, Donna Hancock, Central National Bank, First Citizens Bank, First United, Dr. & Mrs. Wayne Lewis, Cross Cuts, Girton’s, Almost Home, Pizza Hut, Rosewood Crafts, Anne’s, Crystal Pantry, Shuee’s, Posey Patch, Ambler Hill, Mason’s, Matt Russell-D.J.
York’s restructuring which will ensure the long-term viability of the company.” OLYMPIA & YORK sought Canada’s equivalent for bankruptcy protection to prevent losing a majority of O&Y’s Canadian assets, which include 14 million square feet of office space in Toronto, Calgary, Ottawa and Edmonton. Justice Robert Blair of the Ontario General Division granted the request late Thursday, issuing a stay prohibiting creditors from suing O&Y for repayment of debts while the company works on a restructuring plan. THE COMPANY asked for a freeze on its assets pledged as collateral until Oct. 21 and hopes to file a plan July 13 with a vote by creditors Sept 21. Share prices were lower at midday in London and closed down in Tokyo, and traders blamed it on O&Y’s difficulties. In London, the Financial Times-Stock Exchange 100share index was down 11.2 points, or 0.5 percent, by midday at 2,109. In Tokyo, the 225-issue Nikkei Stock Average closed at 18,074.27 points, down 730.33 points or 3.88 percent from Thursday’s close at 18,804.60 points. OLYMPIA & YORK, closely held by the Reichmann family of Toronto, has been talking with 91 banks since late March over restructuring. A bankruptcy filing had been rumored for weeks. A key blow to Olympia & York was a British court ruling Thursday that it must pay $240 million immediately to investment bankers Morgan Stanley & Co. concerning a lease dispute at Canary Wharf in London.
New York City area employ about 5,200 people. IN A STATEMENT, Farkas said Alexander’s hoped to emerge from bankruptcy reorganization and sell or lease its locations. “Our stores are situated on prime retailing sites,” he said. “We fully expect that the (jobs) lost will be only temporary, with other major retailers entering the properties.” Alexander’s directors made the decision to close the store Thursday night after weeks of unsuccessful attempts to negotiate a financial reorganization that would have avoided a Chapter 11 bankruptcy filing.