Show A2 — The Herald Journal Logan Utah Thursday August 15 2002 t Notion In brief D I Record bankruptcies reflect '90s debt analysts predict many more to come WASHINGTON (AP) — Consumersand businesses amassed st much debt in recent years that record numbers filed for bankruptcy protection for the second year in a row the Administra live Office of the US ourts said Wednesday The IS million new cases filed during the year ending June 30 represented an 86 percent increase over the record number of cases filed during the year ending June 30 2(X) 1 Individual bankruptcies totaled 147 million in the year ending June 30 up 86 percent fnuh a year earlier Business bankruptcies rose to 39201 36 percent more than the year before Experts said bankruptcy filings do not reflect the current economy “They're telling us what happened last year It’s just the recession" said Michael Evans a Florida economist formerly with American Economics Group High-proficorporate bankruptcies such as WorldCom and US Airways do not portend improvement in the numbers for at least another year he said “In the months and quarters ahead the bankruptcy statistics will show further worsening" For consumers last year's recession meant car deals and low interest rates which prompted consumers to spend heartily The ' temptation continued when the travel and other industries hoping to limit economic damage from the Sept 1 1 attacks offered substantial savings “Both individuals and public companies are working through the difficult fallout from the debt binge of the 1990s and there's no early end in sight" said Samuel J Gerdano executive director of the American Bankruptcy Institute Congress responding to the increasing bankruptcy filings is considering legislation that would make it harder for Americans to escape overwhelming debt in bankruptcy court The bill negotiated by the House and Senate is stalled over a provision that would prevent abortion protesters who knowingly break the law from using bankruptcy to avoid court fines AP photo A United Airlines passenger Jet leaves the gate area of Chicago's O'Hare International Airport bn Aug 2 on its way to the terminal United Airlines' struggling parent company announced an urgent effort Wednesday and said it is preparing to file for bankruptcy this fall unless it succeeds in lowering expenses dramatically le ImClone Systems cost-cutti- AirlDDiies CHICAGO (AP) — United Airlines the nation’s second-large- st carrier warned Wednesday that it will file for bankruptcy protection this fall unless it succeeds in “dramatically" cutting costs The announcement steps up the pressure on unions that so far have balked at pay cuts ' United says are necessary to stem massive losses The warning comes three days after US Airways filed for sues founder 1 1 Chapter bankruptcy protection and a day after American Airlines announced severe NEW YORK ( AP) — Troubled biotech firm ImClone Systems Inc sued its founder Sam Waksal on Wednesday for $7 million over his conduct during an investigation into possible insider trading’ The suit filed in Manhattan state Supreme Court alleges Wak- -' sal lied to ImClone’s board of directors when he assured them he would cooperate with the probe Prosecutors had sought unsuccessfully to arrange a plea deal that would have farced Waksal to reveal in exchange for leniency whether he provided insider trading tips to family and friends the day before the Food and Drug Administration announced it would not review the biotech company's application for a canccrtinig called Erbitux The announcement sent the stock plummeting Waksal pleaded innocent Monday to an indictment that included both new charges of obstruction of justice and bank fraud and previous insider trading and perjury charges filed at the time of his June arrest Waksal's attorney Mark Fomerantz said the lawsuit was “distressing” but would not comment on the accusations cutbacks ' “Unless we lower our costs dramatically filing for bankruptcy protection will be the only way we can ensure the company’s future and the continued operation of our air- line” Jack Creighton chairman and chief executive1 officer of United parent UAL says baalkruiptcy possible Corp said in a statement United hopes the restructuring will help it win a $18 billion loan guarantee from the federal government a prospect many industry watchers say is unlikely UAL which has $2 billion in cash but is losing millions of dollars each day must repay $875 million in loans due this fall United the nation’s No 2 carrier behind American is limit on costsetting a y cutting talks with employees vendors and leaseholders Its pilots’ union tentatively agreed to a 10 percent pay reduction earlier this summer but other groups have rejected proposed pay cuts Talks with employees who own S3 percent of the company are expected to focus on layoffs as well as pay cuts United did not immediately follow the lead of American Airlines which cut 7000 jobs Tuesday and said it would retire planes and overhaul its flight schedule “Our hope is to get our costs down on a collaborative basis” United spokesman Joe Hopkins said “If that doesn’t work we’ll have to go to Chapter 11” Three airlines have filed for bankruptcy protection this year citing the sluggish economy competition from low-- cost carriers and a downturn in travel after Sept 11 United ' would be the biggest to seek protection from creditors United says the federal loan guarantee is necessary for it to compete in a difficult market fOutAWest Awning & Sign 30-da- IIDAHO LOTTERYJ WEDNESDAY EabrifeAttpingg Store Front Backlit hwigudm dock AUBUST 14 vnnoow Patio 4 16 19 33 41 P6f29 PPWEONESQW AUGUST 7 9 15 17 27 WILDCARD! 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